On May 14, 2018, the Office of the South Carolina Attorney General (“AG”) issued a press release announcing that it has created a Money Services Division (“Division”) within the AG’s office and that, effective May 14, the Division is accepting applications for licensure under South Carolina’s money transmission law. This law, officially known as the South Carolina Anti-Money Laundering Act (“Act”), will formally take effect on May 25, the date the regulations promulgated to implement the Act are scheduled to be published in final form in the State Register. This will occur nearly two years after the Act’s passage on June 9, 2016.
The AG and the Division have explained that entities engaging in money transmission in South Carolina as of May 25 (i.e., the effective date of the Act) may continue operating as long as they submit a licensing application to the Division by June 29, 2018. Once an application is submitted, the entity will be able to continue to operate during the period of licensing review.
Please see full Alert below for more information.