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Bill

SB 887

Relating to requirements for licensure and regulation of money transmission services

2026 Regular Session Introduced by Trenton Barnhart and 7 co-sponsors

West Virginia would require money transmitters to obtain and maintain state licenses, with standards, oversight, and consumer protections.

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Bill Summary · SB 887

Summary of SB 887 (Session 2026) – West Virginia

Purpose and intent

SB 887 aims to regulate and license money transmission services within West Virginia. The bill focuses on establishing explicit licensure requirements for entities that transmit money, defining the scope of regulated activities, and outlining the regulatory framework to oversee these services. The overarching goal is to ensure consumer protections, financial system integrity, and clear state oversight of money transmission activities.

Key provisions and changes

  • Licensure requirements:
    • Establishes a mandatory licensing regime for money transmitters operating in West Virginia.
    • Specifies application processes, qualifications, and periodic license renewal requirements.
  • Eligibility and standards:
    • Sets criteria that money transmitters must meet to obtain and maintain a license (e.g., financial stability, background checks, corporate structure, compliance programs).
    • May include minimum net worth, surety bonds or equivalent financial assurances, and internal controls requirements.
  • Regulatory authority and oversight:
    • Designates the state regulatory agency(ies) responsible for administering the licensure program (likely banking and insurance-related departments or a dedicated regulator).
    • Grants authority to examine, audit, and enforce compliance, including investigation powers and corrective action for licensees.
  • Compliance and consumer protections:
    • Requires licensees to implement anti-money laundering (AML) and consumer protection measures, recordkeeping, and reporting obligations.
    • Specifies standards for disclosure to consumers, fee transparency, and complaint handling procedures.
  • Fees and penalties:
    • Establishes licensure application fees, annual renewal fees, and any other regulatory costs.
    • Defines penalties for noncompliance, including fines, license suspension, or revocation, and potential remedial actions.
  • Interstate and federal coordination:
    • Addresses cooperation with other states and federal regulators to monitor cross-border money transmission activities and share information as appropriate.
  • Definitions and scope:
    • Provides precise definitions of terms such as “money transmitter,” “money transmission,” and related activities to avoid ambiguity.
    • Clarifies the types of payment methods covered (e.g., electronic transfers, stored value, wire transfers) and any exemptions.

Who or what would be affected

  • Money transmitters and payment service providers:
    • Businesses that engage in transmitting money or facilitating payments within West Virginia would likely be required to obtain a state license and comply with ongoing regulatory standards.
  • Consumers in West Virginia:
    • Potentially benefit from heightened protections, clearer disclosures, and improved oversight of entities handling their funds.
  • Regulatory agencies:
    • State banking, insurance, or a designated financial regulator would gain new or expanded authority to license, supervise, and enforce compliance among money transmitters.
  • Financial market participants:
    • Banks, nonbank payment processors, and fintech firms operating in WV may need to align business practices with the licensure requirements if they engage in money transmission activities locally.

Procedural and timeline aspects

  • Introduction and referrals:
    • Introduced February 9, 2026; referred to Banking and Insurance, then Finance.
  • Committee action:
    • A committee substitute was reported on February 19, 2026, and sent to the Finance committee for consideration.
  • Next steps (expected):
    • If advanced, the bill would proceed through additional readings, potential amendments, and votes in the Senate, followed by reconciliation with any House of Delegates actions (if applicable) and final enactment.
  • Effective date:
    • The bill’s text would specify an effective date (often upon passage or a defined future date) for licensure requirements and regulatory authority.

Notable considerations

  • The bill signals a move toward more formalized state oversight of money transmission activities, which could influence compliance costs for licensees, reporting obligations, and consumer protection standards.
  • Stakeholders may include fintech firms, remittance services, payment processors, consumer advocacy groups, and financial institutions operating in West Virginia.

If you’d like, I can tailor this summary to emphasize specific sections once the bill text is available, or compare SB 887 to existing WV statutes on money services for more context.

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

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