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HB 5544

Financial institutions: money transmitters; money transmission modernization act; create. Creates new act.

2025-2026 Regular Session Introduced by Brenda Carter and 5 co-sponsors

Michigan would create a new regulatory framework for money transmitters, establishing licensing, consumer protections, capital standards, and ongoing supervision.

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
#financialinstitutions:moneytransmitters #stateagencies(existing):insuranceandfinancialservices
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Bill Summary · HB 5544

Summary of HB 5544 (Michigan, 2025-2026)

Purpose and intent

HB 5544 proposes to create a new regulatory framework, titled the Financial Institutions: Money Transmitters; Money Transmission Modernization Act. The bill establishes a comprehensive set of requirements for money transmitters operating in Michigan, aiming to modernize and standardize the regulation of money transmission activities and related financial services.

Key provisions and changes

  • New regulatory framework: Establishes a distinct act governing money transmitters, separate from existing financial services statutes, with a focus on modernizing oversight of money transmission activities.
  • Licensing and registration: Likely creates licensing or registration requirements for money transmitters operating in Michigan, including standards to obtain and maintain authorization.
  • Financial safety requirements: May require minimum capital, liquidity, or reserve requirements, as well as safe-keeping of customer funds, to reduce risk to consumers.
  • Consumer protections: Introduces rules intended to protect customers of money transmitters, potentially including disclosures, complaint procedures, and limits on fees or charges.
  • Compliance and supervision: Establishes supervisory authority, reporting obligations, and exam/regulatory oversight processes to ensure ongoing compliance.
  • Enforcement mechanisms: Sets penalties for noncompliance, which could include fines, license suspensions or revocations, and other sanctions.
  • Anti-fraud and anti-money laundering considerations: Likely includes provisions to combat illicit activity, align with federal AML/CTF standards, and require suspicious activity reporting.
  • Consumer accessibility: May address transparency around exchange rates, timelines for transfers, and dispute resolution pathways.
  • Coordination with other agencies: Defines the relationship with state agencies (e.g., Department of Insurance and Financial Services or its successor) for supervision and enforcement.

Affected parties and entities

  • Money transmitters: Entities engaged in transferring money or value on behalf of customers would be directly regulated, licensed, and supervised.
  • Consumers: Individuals and businesses using money transmission services would gain additional protections and clearer disclosures.
  • Financial services landscape: Could impact fintech firms, payment processors, remittance services, and any service involving the transmission of funds or value.

Procedural and timeline aspects

  • Introduction and referrals: Introduced February 19, 2026; referred to the Committee on Finance.
  • Committee action: Reported with a substitute (H-1) and recommendation for referral to Rules on March 17, 2026, indicating a move toward broader consideration and potential debate on the floor.
  • Sponsors: Lead sponsor Rep. Sarah Lightner, with several co-sponsors including Brenda Carter, Bill Schuette, Will Snyder, David Martin, and Mark Tisdel, suggesting bipartisan interest.

Potential impact and considerations

  • The act would bring money transmission activities under a unified state regulatory regime, potentially improving consumer protections, financial stability, and regulatory clarity.
  • Compliance costs for money transmitters may increase due to licensing, capital/reserve requirements, reporting, and regular examinations.
  • The framework could align Michigan with modernization trends in payments and fintech, and may interact with federal AML/CTF policies and other state regimes.

Notes:
- Specific dollar amounts, license fees, capitalization standards, reporting timelines, and detailed enforcement provisions are not provided in the available information. The final text will specify these operational details.

Compiled from official sources — confirm details with the bill’s official record.

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