Texas § FI.152.411 - REMOVAL OR PROHIBITION ORDER

§ FI.152.411. REMOVAL OR PROHIBITION ORDER

REMOVAL OR PROHIBITION ORDER. (a) The commissioner may remove or prohibit a current or former key individual or employee of a money services licensee from office or employment in, or prohibit a control person or other person participating in the affairs of a money services licensee from further participation in a money services licensee or any other entity chartered, registered, permitted, or licensed by the commissioner if the commissioner determines from examination or other credible evidence that: (1) the person: (A) intentionally committed or participated in the commission of an act described by Section 152.408 ; (B) intentionally committed, participated in the commission of, or caused a money services licensee to commit, an act described by Section 152.403 ; (C) violated a final cease and desist order issued by a state or federal regulatory agency against the person or an entity in which the person is or was a key individual, employee, or control person; or (D) made, or caused to be made, false entries in the records of a money services licensee; (2) because of this action by the person: (A) the money services licensee has suffered or will probably suffer financial loss or expense or other damage; (B) the interests of the customers, creditors, or shareholders of the money services licensee, including purchasers and holders of a money transmission licensee's outstanding money transmission obligations, have been or could be prejudiced; or (C) the person has received financial gain or other benefit by reason of the action, or likely would have if the action had not been discovered; and (3) the action: (A) involves personal dishonesty on the part of the person; or (B) demonstrates wilful or continuing disregard for the safety or soundness of the money services licensee. (b) If the commissioner has grounds for action under Subsection (a) and finds that a removal or prohibition order appears to be necessary and in the best interest of the public, the commissioner may serve a proposed removal or prohibition order on a person alleged to have committed or participated in the action. An order issued under this section is subject to Section 152.409 . (c) The commissioner may make a removal or prohibition order perpetual or effective for a specific period of time, may probate the order, or may impose other conditions on the order. (d) The order takes effect if the person against whom the proposed order is directed does not request a hearing in writing before the effective date. If the person does not request a hearing before the effective date, the order is final and not appealable as to that person. Added by Acts 2025, 89th Leg., R.S., Ch. 447 (H.B. 3805 ), Sec. 1, eff. June 20, 2025.