MI HB5798

Replaces the 2006 Money Transmission Services Act with the Money Transmission Modernization Act, effective January 1, 2025, with full implementation by July 1, 2025.

Requires licensing of money transmission businesses through the Department of Insurance and Financial Services, with applications processed within 120 days and licenses renewed annually; establishes multistate licensing coordination through the nationwide multistate licensing system and registry.

Imposes prudential standards including minimum tangible net worth ($100,000 or 3% of assets), surety bonds up to $500,000, and permissible investments equal to outstanding money transmission obligations.

Requires licensees to maintain authorized delegate contracts with specific compliance terms, conduct background investigations, and report quarterly financial and transaction data to the department.

Establishes enforcement powers allowing the director to suspend or revoke licenses for violations, fraud, or unsafe practices, with civil fines up to $10,000 per day and criminal penalties including felony charges for unlicensed operation or false statements.