Wisconsin § 217.08 - Authorized delegates.

§ 217.08. Authorized delegates.

217.08(1) (1) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee’s authorized delegate, the licensee shall do all of the following: 217.08(1)(a) (a) Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee’s authorized delegates comply with applicable state and federal law. 217.08(1)(b) (b) Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law. 217.08(1)(c) (c) Enter into a signed written agreement that does all of the following: 217.08(1)(c)1. 1. Appoints the authorized delegate for the licensee with the authority to conduct money transmission on behalf of the licensee. 217.08(1)(c)2. 2. Sets forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties. 217.08(1)(c)3. 3. Requires the authorized delegate to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including relevant provisions of the Bank Secrecy Act and federal and state laws pertaining to money laundering. 217.08(1)(c)4. 4. Requires the authorized delegate to remit and handle money and monetary value in accordance with the terms of the agreement. 217.08(1)(c)5. 5. Imposes a trust for the benefit of the licensee on money and monetary value net of fees received for money transmission. 217.08(1)(c)6. 6. Requires the authorized delegate to prepare and maintain records as required by this chapter and applicable rules. 217.08(1)(c)7. 7. States the authorized delegate’s consent to examination or investigation by the division. 217.08(1)(c)8. 8. States that the licensee is subject to regulation by the division, and that, as part of that regulation, the division may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation. 217.08(1)(c)9. 9. Acknowledges the authorized delegate’s receipt of the written policies and procedures required under par. (a) . 217.08(2) (2) An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission. 217.08(3) (3) An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee. 217.08(4) (4) A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter or not exempt pursuant to s.