Soon, the Office of Administrative Law will decide whether it will determine the merits of a petition for review of underground regulations allegedly being enforced by the Department of Business Oversight (fka Department of Financial Institutions).  Regardless of whether the OAL accepts the petition, the petition raises some troubling questions about the DBO’s administration and enforcement of the Money Transmission Act, Fin. Code § 2000 et seq.

In 2010, the legislature repealed the Transmitters of Money Abroad Law, the Issuers of Payment Instruments Law, and the Issuers of Travelers Check Act and created a new unitary law, the MTA.  2010 Cal. Stat. ch. 612 (AB 2789).  The bill was sponsored by the Money Services Round Table, a trade association of money transmitters and stored value card issuers.

The petition cites numerous failures by the DBO in the two years since the enactment of the MTA, including the failure to adopt regulations:

  • prescribing how to obtain a license under the MTA;
  • defining what constitutes “money transmission” under the MTA; and
  • adopting “public interest” exemptions as authorized by the MTA.

The petition also faults the DBO for creating requirements and adopting interpretations without complying with the rulemaking provisions of the Administrative Procedure Act.  The petitioner is a lecturer at the U.C. Berkeley School of Law and a partner at a prominent international law firm.


Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.