Guam § 104101 - Regulation.

§ 104101. Regulation.

(a) Every entity shall obtain a license issued by the Department for

each automated teller machine (>ATM=) owned, operated, maintained or

deployed. For the purpose of this Chapter, >Entity= means and includes

individuals, organizations, businesses and other persons acquiring,

deploying, operating or maintaining one or more automated teller

machines, or which permit one or more automated teller machines to be

deployed, operated or maintained on premises controlled by it. >Entity=

shall not include commercial banks as defined and regulated under this

Title.

(b) The review and approval process for a license under this Chapter

shall be conducted by the Banking and Insurance Board.

(c) The Board may license an entity if all of the following are

provided to the Department and presented to the Board pursuant to

Subsection (b) of this Chapter:

(1) The entity submits a comprehensive financial review of

its finances as may be required by the Board.

(2) The entity submits a financial review, as may be required

by the Board, of all shareholders holding more than five percent

(5%) of the outstanding shares, whether voting or non-voting, of

each class of common or preferred stock of the entity, all officers,

all partners and any agents of the entity, and the entity=s business tax

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returns, statements of net worth and liabilities, and proof of ability

to support any liabilities to be incurred.

(3) The entity validates, as the case may be, the

identification of all shareholders holding more than five percent

(5%) of the outstanding shares, whether voting or non-voting, of the

common or preferred stock of the entity, all officers, and all partners

and any agents of the entity. Validation shall include all of the

following:

Name to social security number matches.

Criminal record checks.

Residency verification.

A check against a list provided by the Office of Foreign

Assets Control in the United States Department of Treasury.

Business records check.

(4) The entity submits a review of its current and previous

foreign and domestic acquirer business relationships.

(5) The entity demonstrates that comprehensive and

verifiable >ATM= inventory procedures and controls are established

and implemented that identify the location of any and all >ATMs=,

whether initially installed at a location or subsequently relocated.

(6) The entity submits a review of the soundness of its

general business and operating practices with respect to its ability to

manage the risks inherent in its business, including demonstrating

its knowledge of the parties with which it contracts, demonstrating

adequate operating reporting practices, and demonstrating adequate

record keeping.

(7) The entity submits information as to the proposed place

of operation or deployment of the automated teller machine.

(8) The entity shall furnish such other information as the

Board may require in evaluating the application for a license.

(d) The fee to be paid by an entity applying for licensure by the

Board shall be no less than the fee paid by banks operating automated

teller machines on Guam. The fee and all fees related to the licensing of

automated teller machines shall cover the costs to the Department for

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licensing the entity. Such fee shall be deposited into the Banking and

Insurance Enforcement Fund.

(e) Any entity issued a license under this Chapter other than an

entity which is a financial institution, the deposits of which are insured

by an agency or instrumentality of the United States of America, shall, as

a condition to such license, furnish to and maintain with the

Commissioner a surety bond, or cash deposit, in the amount of at least

One Million Dollars ($1,000,000) as security for all claims or demands

that may be asserted and sustained against the entity holding the license

and related in any way to an automated teller machine licensed to such

entity, including, but not limited to, improper use of information derived

from any transactions processed using an automated teller machine

licensed to such entity.(f) Any Automated Teller Machine not operated

by a bank or other Federally insured financial institutions shall display a

disclaimer prominently in plain view on each machine that states the

following:

>THIS AUTOMATED TELLER MACHINE IS NOT OPERATED BY A

FEDERALLY INSURED FINANCIAL INSTITUTION.=