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TITLE 7BANKING AND SECURITIES
PART 2TEXAS DEPARTMENT OF BANKING
CHAPTER 33MONEY SERVICES BUSINESSES
RULE §33.35What Records Must I Keep Related to Money Transmission Transactions?

(a) Does this section apply to me? This section applies to you if you hold a money transmission license issued by the department under Finance Code, Chapter 152, or are the authorized delegate of a license holder, as applicable.

(b) What are the general recordkeeping requirements?

  (1) As a general matter, you must maintain:

    (A) records of all filings made, and that contain all information required, under applicable federal laws and regulations, including the Bank Secrecy Act and 31 CFR Chapter X (collectively BSA);

    (B) in addition to the records required under Finance Code, Chapter 152, the records required in this section related to specific types of money transmission transactions; and

    (C) records sufficient to enable you to file accurate and complete reports with the commissioner or department in accordance with Finance Code, Chapter 152 and Chapter 33 of this title (relating to Money Services Businesses).

  (2) You must obtain and retain the information required under this section in a log or by another means of retention that allows the information to be readily retrieved. In addition, you must:

    (A) maintain your records in such a manner that you can identify and make available to the department the records related to your Texas transaction activity, and separately account for your Texas transaction activity; and

    (B) make your records available to the department within the time period reasonably requested.

  (3) If the BSA requires your authorized delegate to obtain, record and maintain information in connection with transactions conducted as your authorized sales representative, you shall, upon request by the department, arrange with the authorized delegate to have the records made available to the department. For example, the BSA requires your authorized delegate to maintain records related to the sale of travelers checks issued by you because your authorized delegate, as seller, is the person that actually receives currency. The department may require you to arrange for the production of those records for examination or as otherwise necessary or, alternatively, obtain the records directly from your authorized delegate.

  (4) If you exchange currency in connection with a money transmission transaction subject to this section, you must comply with the recordkeeping requirements of this section and not the requirements of §33.31 of this title (relating to Currency Exchange Recordkeeping).

(c) What specific records must I keep related to the sale of payment instruments?

  (1) This subsection applies to transactions, including third-party bill paying transactions, in which you issue or sell, either as a license holder or the authorized delegate of a license holder, as applicable, travelers checks, money orders, checks or similar payment instruments to one purchaser for $3,000 or more in currency.

  (2) You must keep a record for each transaction that contains the customer and transaction information required under 31 CFR §1010.415(a)(2) and (b).

(d) What specific records must I keep related to the issuance and sale of stored value products?

  (1) This subsection applies to transactions in which you issue or sell, as a license holder or the authorized delegate of a license holder, as applicable, stored value products (e.g., cards, devices, services, digital wallets/e-wallets) in any amount for currency or an instrument payable in currency.

  (2) You must maintain transaction records regarding each stored value transaction that are appropriate for your business activities and the type of stored value product you issue or sell. The records must be sufficient to enable the department to determine the volume of your stored value transactions and the amount of your outstanding stored value liability.

(e) What specific records must I keep related to transmission of funds transactions?

  (1) This subsection applies to transactions, including third-party bill paying transactions, in which you, either as a license holder or the authorized delegate of a license holder, as applicable:

    (A) receive money from a sender for transmission to the sender's designated recipient and the sender pays for or otherwise funds the transmission with currency, an instrument payable in currency, such as a check or money order, or a credit card; or

    (B) receive transmitted funds and pay the designated recipient with currency or an instrument payable in currency.

  (2) The requirements of this subsection do not apply to a transmission of funds transaction governed by the Electronic Fund Transfer Act of 1978 (title XX, Pub. L. 950630, 92 Stat. 3728, 15 USC 1693, et seq.), as well as any other funds transfers that are made through an automated clearing house, an automated teller machine, or a point-of-sale system within the meaning of 31 CFR §1010.100(w).

  (3) If a transmission of funds otherwise subject to this subsection is funded by a credit card, you must obtain and record only the information required under the applicable provisions of 31 CFR §1010.410(e).

  (4) For purposes of paragraph (5) of this subsection, "identifying number" means the taxpayer identification number (e.g., social security, employee identification number) or passport number of your customer or the person on whose behalf your customer conducts the transaction, as applicable, or, if your customer or other person has no such number and is an alien, then the number of an alien identification card or other official document evidencing foreign nationality or residence, such as a foreign driver's license or foreign voter registration card.

  (5) With respect to a transmission transaction in an amount of $3,000 or more, you must keep a record for each transaction that contains:

    (A) for an in-person transaction in which your customer is the sender and orders the transaction on the customer's own behalf or on behalf of another person:

      (i) the customer and transaction information required under 31 CFR §1010.410(e)(1)(i) and (e)(2)(i), except that you must review or record, as applicable:

        (I) an identifying number for your customer and, if applicable, the person on whose behalf your customer is conducting the transaction;

        (II) a photograph identification of your customer;

        (III) the identity of the issuer of the photograph identification;

        (IV) the recipient's name; and

        (V) the name of the recipient's bank and bank account number if the funds are to be deposited in the recipient's bank account;

      (ii) your customer's date of birth;

      (iii) the time of day the transaction is conducted;

      (iv) the location of the office where the transaction is conducted;

      (v) the method of payment (e.g., cash, check, credit card) unless cash is the only method of payment;

      (vi) the amount of any fee charged for the transaction; and

      (vii) the unique number of the receipt required under §33.37 of this title (relating to What Receipts Must I Issue Related to Money Transmission Transactions?).

    (B) for a not-in person transaction, for example, a transaction ordered by phone, fax, mail or online, in which your customer is the sender and orders the transaction on the customer's own behalf or on behalf of another person:

      (i) the customer and transaction information required under 31 CFR §1010.410(e)(1)(i) and (e)(2)(ii), except that you must review or record, as applicable:

        (I) an identifying number for your customer and, if applicable, the person on whose behalf your customer is conducting the transaction;

        (II) the recipient's name; and

        (III) the name of the recipient's bank and bank account number if the funds are to be deposited in the recipient's bank account;

      (ii) your customer's date of birth;

      (iii) your customer's telephone number, or, if your customer has no telephone, a notation in the record of that fact;

      (iv) the time of day the transaction is conducted;

      (v) the location of the office where the transaction is conducted;

      (vi) the method of payment (e.g., cash, check, credit card);

      (vii) the amount of any fee charged for the transaction; and

      (viii) the unique number of the receipt required under §33.37 of this title (relating to Money Transmission Receipts).

    (C) for an in-person transaction in which your customer receives payment of the transmitted funds as the designated recipient or on behalf of the designated recipient:

      (i) the customer and transaction information required under 31 CFR §1010.410(e)(1)(iii) and (e)(3)(i), except that you must review or record, as applicable:

Cont'd...

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