The bill amends the Uniform Money Services Act in Arkansas to enhance consumer protection, particularly for elder adults, and to adapt to the growing use of virtual currency. It introduces new definitions such as "elder adult," "money transmission kiosk," and "virtual currency kiosk operator," and requires licensees to provide training on recognizing financial abuse of elder adults. Additionally, the bill establishes clear disclosure requirements for virtual currency kiosks, mandating that operators inform customers about transaction risks, fees, and their rights before account creation and transactions. It also enhances surety bond requirements for money transmission licenses to address cybersecurity risks and mandates fraud warnings in transactions.

Moreover, the bill sets forth stringent compliance requirements for virtual currency kiosk operators, including customer identity verification, fraud monitoring, and data security measures. Operators must appoint a chief compliance officer and ensure staff are trained in compliance responsibilities. The legislation also emphasizes the need for financial institutions to implement comprehensive information security programs, conduct risk assessments, and adopt encryption and secure development practices for customer data. Institutions are required to report security incidents and maintain business continuity plans, with certain exemptions for those serving fewer than five thousand consumers. Overall, the bill aims to bolster the security of customer information and ensure transparency in virtual currency transactions.

Statutes affected:
HB 1467: 23-55-102, 23-55-202(b), 23-55-204, 23-55-702, 23-55-702(a), 23-55-404(b), 23-55-501(b), 23-55-501, 23-55-603(b), 23-55-608