General Money Transmitter FAQs updated September 2023

These questions and answers constitute informal guidelines only and do not constitute legal advice or rules by DFI.  Any interpretations of Chapter 489D, Hawaii Revised Statutes, are specific to the facts and circumstances in each particular situation. Questions and answers will be updated and supplemented as DFI develops additional guidance.

You may request an opinion or interpretation pursuant to Section 16-24-49, Hawaii Administrative Rules.

If additional guidance is required on a unique situation in your company or for yourself, you may send your inquiry via letter or email to:

Division of Financial Institutions
Department of Commerce and Consumer Affairs
P.O. Box 2054
Honolulu, HI 96805
or

[email protected]

EXCLUSIONS FROM HAWAII MONEY TRANSMISSION

Effective July 1, 2023, information related to activities that are excluded from money transmitter licensing requirements can be found in Act 183, which amends Chapter 489D, Hawaii Revised Statutes (“HRS”).  The activities that are excluded from the requirements of Chapter 489D, HRS, were expanded with specific conditions for exclusion included.  Examples include:

  • Payment processing
  • Agent of the payee
  • Third-party service providers
  • Securities transactions
  • Employees acting within the scope of their employment

Consult with legal counsel to determine eligibility.

Note that if a company determines it meets the exclusion criteria for a particular activity and conducts activity under the exclusion, the commissioner has the right to request documentation supporting the company’s determination.  If a licensee operates under an exclusion, the requirements of Section 489D-14, HRS, Extraordinary Reporting Requirements, apply.

In the past, licensees requested concurrence from DFI that certain of the licensee’s activities were eligible for exclusion from the requirements of Chapter 489D, HRS.  If a licensee was previously notified in writing that DFI concurred that certain of the licensee’s activities were consistent with DFI’s agent-of-the-payee criteria, those opinions will be “grandfathered” and the licensee may continue to treat such activity as excluded from the requirements of Chapter 489D, HRS.

The Financial Institutions General Money Transmitter FAQs updated 07.2021 have been removed from this page.