Chapter 20.1. TITLE 20: DEPARTMENT OF COMMERCE

TITLE 20: DEPARTMENT OF COMMERCE SUBCHAPTER 20-20.1 FOREIGN CURRENCY EXCHANGE RULES AND REGULATIONS Part 001 General Provisions Forms § 20-20.1-001 Authority and § 20-20.1-215 Forwarding of Funds Purpose § 20-20.1-220 Security Deposit § 20-20.1-005 Definitions § 20-20.1-225 Trust Fund Part 100 License Requirements § 20-20.1-230 Ownership of Funds § 20-20.1-101 Foreign Exchange for Transmission to a Foreign Country License Part 300 Sanctions, Penalties and § 20-20.1-105 Foreign Exchange Fees License Fee § 20-20.1-301 Order to Cease § 20-20.1-110 Foreign Exchange Unlawful Practice License Application § 20-20.1-305 Suspension or § 20-20.1-115 Denial of Foreign Revocation of License Exchange License § 20-20.1-310 Civil Penalty for § 20-20.1-120 Issuance of Foreign Violation Exchange License § 20-20.1-315 Fees § 20-20.1-125 Expiration and Part 400 Miscellaneous Provisions Renewal of Foreign Exchange License § 20-20.1-401 Schedule of Part 200 Other Requirements Requirements § 20-20.1-201 Registration of § 20-20.1-405 Amendments Agents § 20-20.1-410 Effective Date § 20-20.1-205 Examination Appendix A Forms § 20-20.1-210 Maintenance of Chapter Authority: 1 CMC § 2454; 4 CMC § 6108; 4 CMC § 6351. Chapter History: Amdts Proposed 30 Com. Reg. 28858 (Oct. 25, 2008); Amdts Adopted 18 Com. Reg. 14345 (Sept.15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: 1 CMC § 2451 originally created the Department of Commerce and Labor. 1 CMC § 2454 directs the Department to adopt rules and regulations regarding those matters over which it has jurisdiction. Title 4, division 6 of the Commonwealth Code, 4 CMC §§ 6101-6814 codifies PL 3-104 (effective Feb. 6, 1984), the “Commonwealth Banking Code of 1984.” 4 CMC § 6106 empowers the Department of Commerce and Labor to administer and enforce the provisions of the banking code and to adopt such policies, rules and regulations as may be necessary for the exercise of the powers and duties conferred by the banking code. 4 CMC § 6108 authorizes the Department to issue and adopt all necessary rules and regulations to carry out the purposes of the banking code. 4 CMC § 6351 specifically authorizes the Department to regulate foreign currency exchange and to establish by regulation conditions and restrictions on foreign exchange businesses. Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 103: Section 103. Department of Commerce. The Department of Commerce and Labor is redesignated the Department of Commerce. The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

TITLE 20: DEPARTMENT OF COMMERCE 30 Com. Reg. 28858 (Oct. 25, 2008) proposed to repeal and replace this subchapter. This regulation was not adopted. 34 Com. Reg. 32466 (June 29, 2012) proposed to add a new subchapter, 20-20.4, entitled Dormant and Inactive Accounts and Unclaimed Funds Regulations. This regulation was not adopted. Part 001 - General Provisions § 20-20.1-001 Authority and Purpose (a) Authority. The authority for the promulgation and issuance of this subchapter is by virtue of 1 CMC § 2454 and 4 CMC §§ 6351 and 6108. (b) Purpose. The purpose of this subchapter is to establish policy and procedures to implement and provide uniform enforcement of the business of selling foreign currency notes or in the business of receiving money for the purpose of transmitting the same or its equivalent to any country outside the Commonwealth of the Northern Mariana Islands; to require, administer, comply and enforce all licenses issuable under this subchapter; and to establish administrative and appeal procedures. Modified, 1 CMC § 3806(d). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987) Commission Comment: The 1993 amendments amended subsection (a). The 1996 amendments amended subsections (a) and (b). The 1993 and 1996 amendments readopted and republished all of the then existing Foreign Currency Exchange Rules and Regulations. The commission, therefore, cites the 1993 and 1996 amendments in the history sections throughout this subchapter. § 20-20.1-005 Definitions (a) “Director” means the Director of Banking or his designee. (b) “Licensee” means any person licensed pursuant to this subchapter and for purpose of granting authority to engage in foreign exchange transactions and transmittal or remittance. (c) “Remittance” means the business of receiving money for the purpose of transmitting the same or its equivalent to any country outside the Commonwealth of the Northern Mariana Islands. (d) “Foreign exchange currency transactions” means the business of receiving and/or selling foreign currency notes. (e) “Dealer” means any person or business establishment engaged in either (c) or (d) or both and is a licensee.

TITLE 20: DEPARTMENT OF COMMERCE (f) “Agent” means a person hired or employed and appointed by dealer to have some or all duties and responsibilities enumerated in the Dictionary of Occupational Title # 211.362-022. (g) “Quarterly foreign exchange remittance report” means that described in forms FX-10, FX-11. Modified, 1 CMC § 3806(d), (f), (g). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The 1993 amendments added new subsections (c) through (g) and amended subsections (a) and (b). The commission added the quotation marks in subsection (g). Part 100 - License Requirements § 20-20.1-101 Foreign Exchange License (a) No person shall engage in the business of selling or receiving foreign currency notes or in the business of receiving money for the purpose of transmitting the same or its equivalent to any country outside the Northern Mariana Islands without first obtaining a license from the Director. The applicant must also obtain a general business license after the issuance of a foreign exchange license. (b) Provisions of this subchapter shall not apply to: (1) A bank licensed to do business in the Commonwealth. (2) The receipt of money by an agent of an incorporated telegraph company at any regular office of such company for immediate transmission by telegraph. Modified, 1 CMC § 3806(d), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The original paragraphs of this section were not designated. The commission designated subsections (a)and (b). § 20-20.1-105 Foreign Exchange License Fee Every licensee shall pay annually a license fee of three hundred dollars. Modified, 1 CMC § 3806(e), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg.

TITLE 20: DEPARTMENT OF COMMERCE 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). § 20-20.1-110 Foreign Exchange License Application The application for a license shall be in writing and shall contain the following information: (a) The name, address and nationality of the applicant, and the address from which the business is to take place and telephone numbers. If the applicant is a corporation, the names, addresses and nationality of the shareholders, directors and officers and the number of shares held by each shareholder are also required. (b) The name, address and nationality of every agent of the applicant. (c) Whether the license applied for is to be used for the sale of foreign currency notes or the transmittal of money or both. (d) Any other information which the Director may require. History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). § 20-20.1-115 Denial of Foreign Exchange License The Director may deny an application for a license to be issued under this subchapter if, after a hearing pursuant to the provisions of the Administrative Procedure Act [1 CMC §§ 9101, et seq.], he finds that: (a) Granting of the license will be against the public interest; (b) The applicant does not intend to actively and in good faith carry on as a business with the general public the transactions which would be permitted by the issuance of’ the license applied for; (c) The applicant, and if a corporation, a shareholder, director or officer thereof, is not of good business reputation or is lacking in integrity; (d) The applicant has knowingly or willfully made a misstatement in an application to the Director for a license, or any document filed in support of such application, or has made a false statement in testimony given under oath before the Director or any other person acting in his stead; (e) The applicant has permitted any person in his employ to violate any provision of this subchapter. Modified, 1 CMC § 3806(d), (f), (g).

TITLE 20: DEPARTMENT OF COMMERCE History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: In the opening paragraph, the commission changed “Procedures” to “Procedure” to correct a manifest error. In subsections (b), (c) and (d), the commission changed the final period to a semi-colon. The Commission inserted a colon after the phrase “he finds that” pursuant to 1 CMC § 3806(g). § 20-20.1-120 Issuance of Foreign Exchange License (a) If the application is approved by the Director, he shall, upon receipt of the license fee, issue to the applicant a license to engage in business in accordance with this subchapter. A licensee shall conduct its business at its designated office location. A licensee shall be prohibited and restricted from conducting or performing remittance collection transactions, insurance of receipts, or the collection of funds outside the premises of its designated business office location. This rule shall also apply to agents of remittance companies. (b) Form FX-1 and all items required on the “checklist” for proposed registration as foreign exchange dealer/ agent must be completed and submitted to the Director. Modified, 1 CMC § 3806(d). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The original paragraphs of this section were not designated. The commission designated subsections (a) and (b). The 1993 amendments added subsection (b), amended subsection (a) and republished and readopted the entire section. § 20-20.1-125 Expiration and Renewal of Foreign Exchange License (a) The license is not transferrable or assignable. (b) License shall expire one year following the date of issuance. An agent’s license shall expire on the same date as the appointing dealer’s license. (c) Failure to comply with § 20-20.1-120 shall be just cause for the non-renewal of dealer’s license and may be subjected to other certain sections of this subchapter. (d) Any other information which Director may require as part of renewal of license requirement must be submitted. Modified, 1 CMC § 3806(c), (d), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg.

TITLE 20: DEPARTMENT OF COMMERCE 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The 1993 amendments added new subsections (c) and (d). The 1996 amendments deleted former subsection (b) and replaced it with the current language and republished and readopted the entire section. Part 200 - Other Requirements § 20-20.1-201 Registration of Agents (a) Every agent of a licensee except as described under subsection (c), shall register with the Director and shall pay annually a registration fee of thirty dollars. (b) If appointed agent is a nonresident worker, he/she must obtain approval from the Director of Labor or submit copies of work permit and employment contract which specify duties and responsibilities inherent of “agent” as defined under § 20-20.1-005(f) of this subchapter. (c) Retailers and hotels in the business of foreign exchange currency transactions and having such business as only incidentals to serving their clients must also appoint agents. Only these establishments may include cashiers as agents. Names of persons doing transactions and their job title must be specified on forms FX-1 and FX-12. Only one 10,000 or more, such details include social security numbers, tax identification

TITLE 20: DEPARTMENT OF COMMERCE numbers, addresses, type of transaction, whether by check or cash, and signature of sender. Dealer shall report such transactions upon submittal of the quarterly reports. (c) All Foreign currency exchange dealers are required to submit a summary report of business activity on a quarterly basis: (1) Foreign currency exchange dealers in the business of transmitting money shall submit a report of total funds remitted outside of the CNMI, and report the number of remitters. (2) Foreign exchange currency transaction dealers shall submit a report of the total amount of foreign currency transacted in the CNMI. (d) Every foreign exchange dealer must cause its bank to provide the Director running balances of funds transmitted abroad every quarter, except hotels and retailers. Foreign currencies collected should also be reported. (e) Director will include collected figures and data in the annual banking report of the Director of Banking. Modified, 1 CMC § 3806(f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The 1993 amendments added new subsections (b), (c), (d) and (e) and amended subsection (a). The 1996 amendments added subsections (c)(1) and (c)(2) and republished and readopted the entire section. § 20-20.1-210 Maintenance of Forms (a) Each licensee will obtain and continue to hold for three years a true copy of every receipt form used by it and by its agents for selling foreign currency notes or for money received for transmission. The receipts used shall be printed and pre-numbered and consist of at least two copies, one to be given to the customer, the other to be retained by the licensee for record keeping purposes. A receipt used for the sale of foreign currency notes shall contain not less than the following information: (1) The amount and country of origin of the foreign currency notes involved in the transactions. (2) The rate of exchange of the transaction. (3) The U.S. dollar amount involved in the transaction. (4) The commission or other charge received by the licensee for carrying out the transaction. (b) A receipt used for the transmittal of money shall contain in addition to the above information required for the sale of foreign currency notes, the name and address of the beneficiary and the method in which the beneficiary is to receive the funds transmitted. (c) No licensee or its agents shall use any receipts, a certified copy of which has not first been filed with the Director. Every licensee violating the requirement of this section shall be subject to a fine of fifty dollars for each violation.

TITLE 20: DEPARTMENT OF COMMERCE (d) Forms FX-5 or FX-6 information must be revealed in the pre-numbered receipts. Modified, 1 CMC § 3806(e), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The original paragraphs were not designated. The commission designated subsections (a) through (d). The 1993 amendments added new subsection (d). § 20-20.1-215 Forwarding of Funds Every licensee or its agents shall forward all moneys received for transmission to a foreign country or give instructions committing equivalent funds to the person designated by the depositor within ten days after receiving such money, unless otherwise ordered by his customer. Modified, 1 CMC § 3806(e). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). § 20-20.1-220 Security Deposit (a) As security for the faithful performance of its obligations, each licensee, before engaging in the business of transmitting money (remittance), shall deposit with the Treasurer of the Commonwealth fifty thousand dollars in time deposit for a period of not less than one year in a bank within the Northern Mariana Islands; and such value must be maintained at all times. The Director of Banking prescribes the following procedures: (1) Time deposit account must show foreign exchange company “and”* the CNMI Treasurer “or”* the Director of Banking as holders of the account. (2) The Director shall notify Treasurer and company of account’s maturity date and Treasurer shall be authorized to renew or terminate such account pursuant to instruction from the Director. (3) Interest earned on such deposit shall accrue to the benefit of the foreign exchange company. (4) Complete forms FX-7, FX-9, and other forms as provided by the Director. (5) Release of the security deposit shall only be accomplished by authority from the Director of Banking. (b)(1) In lieu of the deposit of money pursuant to subsection (a) of this section, a licensee may deliver to the Director of Banking the bond of a bona fide surety company, in a form satisfactory to the Director, the principal sum of fifty thousand dollars lawful money of the United States, conditioned upon the faithful holding and transmission of all monies received by such licensee or its agents for such purpose.

TITLE 20: DEPARTMENT OF COMMERCE (2) Form FX-13 contains language which may be used as guideline language for surety bond, otherwise, policy forms previously approved by the Insurance Commissioner shall remain acceptable. (c) Foreign exchange currency transaction dealers who are not in the business of remittance shall not be required to put up security deposit. (d) The Director shall forward the deposit to the CNMI Treasurer for custody and safekeeping and shall be accomplished by preparing a transmittal form and acknowledged by the Treasurer.

So in original. Modified, 1 CMC § 3806(e), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: In subsection (b), the paragraphs were not designated. The commission designated subsections (b)(1) and (b)(2). The commission also designated the final paragraph subsection (d). The 1993 amendments amended subsections (a) and (b)(1) and added new subsections (a)(1) through (a)(5), (b)(2), (c) and (d). The 1996 amendments amended subsection (d) and republished and readopted the entire section. § 20-20.1-225 Trust Fund The money deposited with the Treasurer of the Commonwealth pursuant to § 20-20.1-220(a) and (b) of this subchapter shall constitute a fund for the benefit of persons in case a licensee or its agents is not able to pay for funds entrusted to them for remittance. Modified, 1 CMC § 3806(c), (d). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). § 20-20.1-230 Ownership of Funds for Transmission to a Foreign Country All funds, less fees, received by a licensee or its agents for transmission to a foreign country shall constitute trust funds owned by and belonging to the person from whom they were received until such time as directions have been given by the licensee or its agents for payment abroad of the remittance and funds provided for such payment History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987).

TITLE 20: DEPARTMENT OF COMMERCE Part 300 - Sanctions, Penalties and Fees § 20-20.1-301 Order to Cease Unlawful Practice If it appears to the Director that the licensee is violating or failing to comply to this subchapter; the Director shall direct the licensee to comply with this subchapter or if it appears to the Director that any licensee is conducting his business in an unsafe or injurious manner he shall in like manner direct the licensee to discontinue practice. The order shall require the licensee to show cause before the Director at the time and place to be fixed by him why the order should not be observed. Modified, 1 CMC § 3806(d), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). § 20-20.1-305 Suspension or Revocation of License (a) The Director may suspend any license issued pursuant to this subchapter if he finds that: (1) The licensee has violated a provision of this subchapter or any rule issued thereunder; (2) Any fact or condition exists which, if it had existed at the time of the original application of such license, would be grounds for denying an application for a license under § 20-20.1-110; (3) The licensee is conducting his business in an unsound manner. (b) The Director may revoke a license after a hearing held pursuant to the Administrative Procedure Act [1 CMC §§ 9101, et seq.] following a suspension. Modified, 1 CMC § 3806(d), (f), (g). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The original paragraphs were not designated. The commission designated subsections (a) and (b). In subsection (b), the commission changed “Procedures” to “Procedure” to correct a manifest error. § 20-20.1-310 Civil Penalty for Violation (a) Any person who violates or fails to comply with any provision of this subchapter or who, without complying with the provisions of this subchapter, represents that he is authorized to receive, or solicits or receives, money or the equivalent for transmission to a foreign country, shall be fined $500 f ore a c h v i o l a t i o n . (b) A p e na lt y f eeo f$ 10.00 a day for each day a report is late shall be assessed on the foreign exchange company or* failure to submit a complete and accurate quarterly report on the filing deadline and no notice and explanation for extension request was received by the Director.

TITLE 20: DEPARTMENT OF COMMERCE *So in original; probably should be “for.” (c) If, upon sufficient evidence, the Director finds that funds were not remitted to beneficiaries within 10 days as required in § 20-20.1-215, the foreign exchange company will be fined fifty dollars for each violation; or have its license suspended, or both. Modified, 1 CMC § 3806(c), (d), (e). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992); Certified 14 Com. Reg. 9177 (Apr. 15, 1992); Adopted 9 Com. Reg. 4925 (April 15, 1987); Proposed 9 Com. Reg. 4917 (Mar. 16, 1987); Proposed 9 Com. Reg. 4895 (Jan. 19, 1987). Commission Comment: The 1993 amendments added new subsections (b) and (c) and amended subsection (a). The 1996 amendments changed the title, amended subsection (a), and republished and readopted the entire section. § 20-20.1-315 Fees (a) The following is a schedule of all fees required by this subchapter: (1) Foreign exchange dealer license $300.00 (2) Foreign exchange agent license 30.00 (3) Violations to sections 20-20.1-210, 20-20.1-215 & 20- 50.00/day 20.1-310(c) (4) Violations to section 20-20.1-310(a) 500.00 (5) Penalty fees section 20-20.1-310(b) 10.00/day (6) Amendment fee 10.00 (7) Duplication of documents .50/page (8) Certification fees 5.00 (9) Late renewals and other filing fees 2.00/day or as prescribed by the Director (10) Business license 50.00 (b) Fees collected under this section other than business license (a)(10), shall be paid to the CNMI Treasurer, and Director of Finance shall permit the Director of Banking to use funds for the enforcement of this subchapter. Modified, 1 CMC § 3806(c), (d), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992). Commission Comment: The original paragraphs were not designated. The commission designated subsections (a)and (b). The 1996 amendments amended subsection (a)(4) and republished and readopted the entire section.

TITLE 20: DEPARTMENT OF COMMERCE Part 400 - Miscellaneous Provisions § 20-20.1-401 Schedule of Requirements Schedule of all requirements are enumerated in the “Checklist For Proposed Registration As Foreign Exchange Dealer/Agent” and all such requirements are included as part of this subchapter. Memoranda, rules, guidelines, comments, procedures, and other items relative to foreign exchange business to be issued by the Director of Banking shall be published annually as part of this subchapter. Modified, 1 CMC § 3806(d). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992). Commission Comment: The commission created the section title. § 20-20.1-405 Amendments Amendments to the rules and regulations of this subchapter shall be in accordance to the Administrative Procedure Act [1 CMC §§ 9101, et seq.]. The regulations of this subchapter shall repeal all previous Foreign Exchange Rules and Regulations upon its adoption and certification by the Director of Banking. Modified, 1 CMC § 3806(d), (f), (g). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996); Amdts Adopted 15 Com. Reg. 10390 (Jan. 15, 1993); Amdts Proposed 14 Com. Reg. 10124 (Nov. 15, 1992). Commission Comment: The commission created the section title. The commission changed “Procedures” to “Procedure” to correct a manifest error. § 20-20.1-410 Effective Date This subchapter is to take effect immediately after adoption and certification by the Director of Banking after its publication in the Commonwealth Register. All foreign exchange companies and agents must immediately comply. Modified, 1 CMC § 3806(d), (f). History: Amdts Adopted 18 Com. Reg. 14345 (Sept. 15, 1996); Amdts Proposed 18 Com. Reg. 14122 (May 15, 1996). Commission Comment: The 1987 regulations contained an effective date provision as follows: 19. EFFECTIVE DATE. These regulations are to take effect on January 1, 1987. 9 Com. Reg. 4895, 4903 (Jan. 19, 1987). The 1993 amendments also contained an effective date provision as follows: 22. EFFECTIVE DATE. These regulations are to take effect on January 01, 1993, or whenever adopted and certified by the Director of Banking after its publication in the Commonwealth Register. All foreign exchange companies and agents must immediately comply. 15 Com. Reg. 10390, 10407 (Jan. 15, 1993).

TITLE 20: DEPARTMENT OF COMMERCE

Source: CNMI Law Revision Commission

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TITLE 20: DEPARTMENT OF COMMERCE

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