Hawaii Revised Statutes
489D. Money Transmitters Act
489D-17 Examinations and investigations.

§489D-17 Examinations and investigations. (a) The commissioner may examine or investigate a licensee or authorized delegate of a licensee as reasonably necessary or appropriate to administer and enforce this chapter, rules adopted or orders issued under this chapter, and other applicable law including but not limited to the Bank Secrecy Act, title 31 United States Code section 5311 et seq.; Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, P.L. 107-56; Electronic Fund Transfer Act, Title 15 United States Code section 1693 et seq.; and [Gramm-Leach-Bliley] Act of 1999, P.L. 106-102.
(b) The commissioner may:
(1) Conduct an examination or investigation as the commissioner may reasonably require;
(2) Conduct an on-site or off-site examination or investigation or an off-site review of records;
(3) Conduct an examination or investigation in conjunction with an examination or investigation conducted by representatives of agencies of another state or the federal government;
(4) Accept the examination report of agencies of another state or the federal government or a report prepared by an independent accounting firm, in which event the accepted report shall be considered for all purposes as an official report of the commissioner; and
(5) Summon and examine under oath a key individual or employee of a licensee or authorized delegate of a licensee and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.
(c) A licensee or authorized delegate of a licensee shall provide, and the commissioner shall have full and complete access to, all records the commissioner may reasonably require to conduct a complete examination or investigation. The records shall be provided at the location and in the format specified by the commissioner; provided that the commissioner may utilize multi-state record production standards and examination procedures when the standards will reasonably achieve the requirements of this section.
(d) Unless otherwise directed by the commissioner, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee's authorized delegate.
(e) To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the commissioner may participate in the multi-state, networked supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, Money Transmitter Regulator Association, and affiliates and successors for all licensees that hold licenses in this State and other states; provided that:
(1) As a participant in this multi-state supervision, the commissioner may:
(A) Cooperate, coordinate, and share information with other state and federal regulators;
(B) Enter into a written cooperation, coordination, or information-sharing contract or agreement with the organizations, the membership of which is made up of state or federal governmental agencies; and
(C) Cooperate, coordinate, and share information with organizations, the membership of which is made up of state or federal governmental agencies; provided further that the organizations agree in writing to maintain the confidentiality and security of the shared information;
(2) For the purposes of paragraph (1), the commissioner shall:
(A) Conduct a joint or concurrent examination or other investigation or enforcement action with the agency of another state or the federal government;
(B) Accept a report of examination or investigation by, or a report submitted to, the agency of another state or federal government, in which event the accepted report shall serve as an official report of the commissioner for all purposes; and
(C) Take other action as the commissioner considers reasonably necessary or appropriate to carry out and achieve the purposes of this chapter;
(3) The commissioner shall not waive, and nothing in this section shall constitute a waiver of, the commissioner's authority to conduct an examination or investigation or otherwise take independent action authorized by this chapter, or a rule adopted or order issued under this chapter, to enforce compliance with applicable state or federal law; and
(4) A joint examination or investigation, or acceptance of an examination or investigation report, shall not waive an examination assessment authorized by this chapter.
(f) The submission of any information to the commissioner by a person subject to this chapter or shared with the commissioner by another federal or state regulator of a person subject to this chapter, for any purpose in the course of any examination or investigation or otherwise, shall not be construed as waiving, destroying, or otherwise affecting any privilege the person may claim with respect to the information under federal or state law as to any person or entity other than the commissioner; provided that this subsection shall not be construed as implying or establishing that:
(1) Any person waives any privilege applicable to information that is submitted or transferred under circumstances to which this subsection does not apply; and
(2) Any person would waive any privilege applicable to any information by submitting the information to the commissioner but for this subsection.
(g) The commissioner shall charge an examination fee to each licensee and authorized delegate examined or investigated by the commissioner or the commissioner's staff, based upon the cost per hour per examiner. The hourly fee shall be $60.
(h) In addition to the examination fee, the commissioner shall charge any money transmitter or authorized delegate examined or investigated by the commissioner or the commissioner's staff, additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination. [L 2006, c 153, pt of §1; am L 2008, c 195, §11; am L 2013, c 167, §12; am L 2021, c 108, §7]