Two states have recently finalized significant updates to their money transmission laws, signaling continued nationwide alignment with the Conference of State Bank Supervisors' Model Money Transmission Modernization Act (MTMA). Georgia and Nebraska's new rules impose heightened compliance, documentation, and oversight requirements for licensees operating in each state.
On July 7, the Georgia Department of Banking and Finance finalized regulatory amendments addressing the role of service providers in money transmission and strengthening exam-related obligations for licensees. The new rules define "material services," restrict unauthorized transmission activity, and codify documentation and oversight responsibilities for money transmitters operating in the state.
Specifically, the rules:
- Clarify scope of material service providers. The rules defines material services as those involving access to consumer funds, account data, or personally identifiable information, or the ability to alter such data in any way.
- Restrict unauthorized transmission activity. Service providers may not conduct money transmission or present themselves as doing so unless licensed or exempt under Georgia law.
- Impose vendor oversight obligations. Licensees must retain and be able to produce provider contracts, audit rights, fee terms, financials, and service-level reports during examinations.
- Mandate financial audits and reporting. Annual audited financial statements and quarterly call reports must be submitted through the NMLS, in accordance with Department timelines.
- Establish enforcement penalties. Violations—including the use of unlicensed providers or failure to update records—are subject to fines ranging from $500 to $5,000, with some violations carrying daily penalties.
- Outline hourly exam fees. Licensees are subject to an examination fee of $65 per examiner-hour, with a $500 minimum unless the exam occurs alongside another active review.
On May 20, Nebraska Governor Jim Pillen signed LB 474 into law. The bill, effective October 1, 2025, updates the Nebraska Money Transmitters Act and also includes model language from the CSBS. It expands permissible investments, tightens financial standards, and increases licensing fees.
Specifically, the bill:
- Raises licensing fees. Application and renewal fees increase to $1,500 and $750 respectively, and a $1,500 change-of-control fee is introduced.
- Expands licensing and exemption standards. The rules specify which entities qualify for exemptions, including federally regulated institutions and agents of payees, while requiring licensing for platforms that hold or transmit funds, even if operating through intermediaries.
- Updates key definitions. LB 474 clarifies terms such as "in this state," "multi-state licensing process," and "average daily money transmission liability."
- Codifies exemptions. The Nebraska law exempts certain entities, including registered futures commission merchants, broker-dealers, and specific third-party service providers.
- Expands permissible investments. Broader investment options are allowed, with limitations based on risk profile.
- Increases financial requirements. Minimum net worth is raised to the greater of $100,000 or a tiered percentage of assets; the surety bond cap increases from $250,000 to $500,000.
Putting It Into Practice: Georgia and Nebraska become the latest states to update their money transmission statutes to reflect evolving business models and improve alignment with national licensing standards (previously discussed here). Multistate licensees should reassess vendor contracts, data access procedures, and internal audit protocols to ensure preparedness for cross-jurisdictional compliance reviews.
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