CHAPTER 278. REGULATION OF CURRENCY TRANSMISSIONS
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE Z. MISCELLANEOUS PROVISIONS RELATING TO FINANCIAL
INSTITUTIONS AND BUSINESSES
CHAPTER 278. REGULATION OF CURRENCY TRANSMISSIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 278.001. DEFINITIONS. In this chapter:
(1) "Currency" has the meaning assigned by Section 153.001.
(2) "Currency transmission business" means engaging in or
offering currency transmission as a service or for profit. The
term does not include:
(A) a federally insured financial institution, as defined by
Section 201.101, that is organized under the laws of this state,
another state, or the United States; or
(B) a title insurance company or title insurance agent, as
defined by Section 2501.003, Insurance Code.
(3) "Currency transmission" means receiving currency or an
instrument payable in currency in order to transmit the currency
or its equivalent by wire, computer modem, facsimile, physical
transport, or any other means or through the use of a financial
intermediary, the Federal Reserve System, or another funds
transfer network.
(4) "Fee" does not include revenue that a currency transmission
business generates in connection with a currency transmission in
the conversion of a currency of one government into the currency
of another government.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 11.112, eff. September 1, 2005.
SUBCHAPTER B. CURRENCY TRANSMISSION DISCLOSURES
Sec. 278.051. DISCLOSURES WITH TRANSACTION. (a) Other than in
a telephonic transaction conducted on a telephone that is not
designated for use in currency transmission transactions by a
currency transmission business, at the time of a currency
transmission transaction to another country the currency
transmission business shall provide a receipt to the customer.
The receipt must:
(1) clearly state the amount of currency presented for
transmission and any fees charged by the currency transmission
business; and
(2) provide a toll-free telephone number or a local number that
a customer can access at no charge to receive information about a
currency transmission.
(b) If the rate of exchange for a currency transmission to be
paid in the currency of another country is fixed by the currency
transmission business for a transaction at the time the currency
transmission is initiated, the receipt must also disclose:
(1) the rate of exchange for that transaction;
(2) the amount to be paid in the foreign currency; and
(3) the period, if any, in which the payment must be made in
order to qualify for the fixed rate of exchange.
(c) If the rate of exchange for a currency transmission to be
paid in the currency of another country is not fixed at the time
the currency transmission is initiated, the receipt must also
disclose that the rate of exchange for the transaction will be
set at the time the recipient of the currency transmission
receives the funds in the foreign country.
(d) If the customer requests, the currency transmission business
must provide the required disclosures before completing the
transaction.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1,
2003.
Sec. 278.052. CANCELLATION AND REFUND OF TRANSACTION. (a)
Except as provided by Subsection (c), on receiving the
transaction receipt required under Section 278.051, a customer
may cancel the currency transaction:
(1) before leaving the premises of the currency transmission
business; and
(2) not later than 30 minutes after the time at which the
currency transmission was initiated.
(b) If the customer cancels the transaction, the currency
transmission business shall immediately refund to the customer
the fees paid and currency to be transmitted.
(c) A customer may not cancel a transaction after the recipient
of the currency transmission has received the currency or its
equivalent.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1,
2003.
Sec. 278.053. LANGUAGE OF DISCLOSURE. A currency transmission
business shall make the disclosures required by this chapter in
English and, if the currency transmission is to a country where
Spanish is widely spoken, in Spanish.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1,
2003.
SUBCHAPTER C. ENFORCEMENT
Sec. 278.101. CIVIL PENALTY. (a) A person who knowingly
violates this chapter is liable to the state for a civil penalty
in an amount not to exceed $1,000 for each violation. The
attorney general or the prosecuting attorney in the county in
which the violation occurs may bring:
(1) a suit to recover the civil penalty imposed under this
section; and
(2) an action in the name of the state to restrain or enjoin a
person from violating this chapter.
(b) The attorney general or the prosecuting attorney in the
county in which the violation occurs, as appropriate, is entitled
to recover reasonable expenses incurred in obtaining injunctive
relief, civil penalties, or both, under this section, including
reasonable attorney's fees, court costs, and investigatory costs.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1,
2003.