- in South America
On June 9, 2026, Louisiana enacted House Bill 1230 (HB 1230), the Louisiana Money Transmission Act, which replaces the Louisiana Sale of Checks Act with a new licensing regime and regulatory framework for money transmitters operating in the state. HB 1230 largely adopts the Conference of State Bank Supervisors’ Model Money Transmission Modernization Act (MMTMA).
HB 1230 took effect on July 1, 2026. Existing money transmission licensees (licensed under the Sale of Checks Act) will not be subject to new or conflicting requirements of HB 1230 until license renewal or 12 months from the statute’s effective date, whichever is later.
Scope of Louisiana’s HB 1230
HB 1230 requires licensure for — and imposes operational requirements on — companies that engage in or hold themselves out as engaging in “money transmission” in Louisiana. The statute defines “money transmission” to include selling or issuing payment instruments or stored value, or receiving money or monetary value for transmission, from a person located in Louisiana. HB 1230, like the Sale of Checks Act before it, tasks the Louisiana Office of Financial Institutions with issuing money transmission licenses and supervising licensees.
Key Requirements
In addition to licensing, HB 1230 imposes several notable operational requirements on regulated entities:
- NMLS Licensing Administration. Licensing applications, reporting, examinations, and certain background-check functions will be administered through the Nationwide Multistate Licensing System (NMLS).
- Reporting and Record Retention. Licensees must provide periodic financial and operational reports, including quarterly filings and annual audited financial statements, to the Louisiana Office of Financial Institutions. Licensees must also comply with record-retention requirements outlined in the federal Bank Secrecy Act, 31 U.S.C. 5311, et. seq., and other anti-money laundering laws.
- Financial Safeguards. The law establishes minimum financial responsibility requirements, including tangible net worth standards, maintenance of a surety bond, and requirements regarding permissible investments.
- Authorized Agent Controls. Companies operating through authorized agents must conduct reasonable due diligence into the agent’s history, enter into a written agreement with the agent, and establish policies and procedures to help ensure agent compliance with applicable federal and state laws.
Takeaways for Businesses
By enacting HB 1230, Louisiana joins more than 30 states that have adopted MMTMA, at least in part, in an effort to promote greater consistency in money transmitter regulation at the state level. While companies that already comply with MMTMA-based laws in other states may find some of HB 1230’s concepts familiar, the requirements of the new Louisiana law should be carefully reviewed. ExistingLouisianamoney transmission licensees should use the transition period to prepare for a different licensing process and new operating requirements. Companies considering Louisiana money transmission operations should also carefully consider HB 1230’s scope and requirements, as the law is already in effect.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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