HB1596 MS passed

Money transmitters; require to implement certain data security measures and customer protections.

privacy

Plain-English summary

1. **ONE-SENTENCE SUMMARY:** This bill requires money transmitters in Mississippi to implement data security measures and customer protections to safeguard customer information.

2. **KEY REQUIREMENTS:**
   - Designate a qualified individual to oversee and enforce an information security program.
   - Implement minimum standards for the information security program.
   - Conduct regular risk assessments to identify vulnerabilities.
   - Notify the Commissioner of Banking and Consumer Finance if unencrypted customer information is accessed without authorization.
   - Provide training materials to help recognize and respond to financial abuse of elder adults.
   - Offer specific information to customers for each money transmission or kiosk transaction.

3. **DEADLINES:**
   - The bill is effective immediately upon passage, so compliance should begin as soon as possible.

4. **PENALTIES:**
   - Failure to comply with the requirements may result in fines and enforcement actions by the Commissioner of Banking and Consumer Finance.

5. **SMB IMPACT:** Small businesses that operate as money transmitters will need to invest in data security measures and training programs, which may require additional resources and time to implement. Compliance is crucial to avoid potential fines and maintain customer trust.

Source description

An Act To Require A Money Transmitter Licensed Under The Money Transmission Modernization Act To Implement Safeguards To Protect Customer Information And Increase Data Security; To Require A Licensee To Designate A Qualified Individual To Be Responsible For Overseeing, Implementing And Enforcing An Information Security Program; To Provide The Minimum Standards And Requirements For The Information Security Program And To Require Risk Assessments; To Require Notification To The Commissioner Of Banking And Consumer Finance When Unencrypted Customer Information Is Acquired Without The Authorization Of The Affected Individual; To Provide Certain Exceptions; To Amend Section 75-16-11, Mississippi Code Of 1972, To Provide That Funds Coming Into The Possession Of The Commissioner As A Result Of The Money Transmission Modernization Act Shall Be Deposited Into The Consumer Finance Fund; To Amend Sections 75-16-25, 75-16-31 And 75-16-43, Mississippi Code Of 1972, To Regulate Virtual Currency Kiosks Under The Provisions Of The Money Transmission Modernization Act; To Amend Section 75-16-51, Mississippi Code Of 1972, To Require A Licensee To Provide Training Materials To Help Authorized Delegates Recognize Financial Abuse And Financial Exploitation Of An Elder Adult And Respond Appropriately In Such Situations; To Amend Section 75-16-65, Mississippi Code Of 1972, To Include The Word "investments"; To Create New Section 75-16-89, Mississippi Code Of 1972, To Require A Licensee To Provide Certain Information To The Purchaser In Connection With Each Money Transmission Or Kiosk Transaction Conducted By The Licensee Directly Or Through An Authorized Delegate; And For Related Purposes.

Not legal advice. Summaries are generated by AI from publicly available bill text and may contain errors or omissions. Always consult counsel before making compliance decisions.