Oregon Division of Financial Regulation

Overview

The Oregon Division of Financial Regulation (DFR) is the state regulator responsible for licensing, supervision, and enforcement of money transmitters and other financial service providers operating in Oregon. Established under the Oregon Money Transmitters Act (ORS Chapter 717), the DFR operates as a division within the Department of Consumer and Business Services (DCBS) and serves as the primary state authority for money transmission licensing and oversight.

The DFR's mission includes protecting consumers, ensuring compliance with state and federal regulations, and maintaining the integrity of Oregon's financial services market through rigorous licensing requirements, ongoing supervision, and enforcement actions against violators.

Jurisdiction: State of Oregon

Administrator: TK Keen

Parent Agency: Department of Consumer and Business Services (DCBS)

Governing Statute: ORS Chapter 717 – Money Transmission

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Regulatory Examination Authority

The DFR maintains authority to examine money transmitters to ensure:

• Compliance with ORS 717 and related regulations
• Adequate financial condition and capital
• Proper operation of anti-money laundering and customer due diligence programs
• Consumer fund protection and segregation of customer funds
• Sound operational and internal control practices

Examination Standards

Requires verification from official sources The DFR may conduct:

• Initial pre-approval examinations of license applicants
• Ongoing risk-based examinations of licensed money transmitters
• Targeted compliance examinations (AML/BSA, virtual currency operations, etc.)
• Coordinated multi-state examinations through NMLS and interstate cooperation

Multi-State Coordination

Oregon participates in coordinated multi-state supervision through:

• NMLS Consumer Access (NMLS): Integrated licensing and supervisory database used by 49+ states
• Conference of State Bank Supervisors (CSBS): Policy coordination and examination standards sharing
• Money Transmitter Regulators Association (MTRA): Regulatory guidance and best practices

Supervision and Reporting

Requires verification from official sources Licensed money transmitters must provide periodic regulatory reports including:

• Transaction volume and geographic distribution data
• Customer complaint summaries
• Adverse incident notifications (system outages, security breaches, material operational failures)
• Updated financial statements and ownership information

Consumer Fund Protection

The DFR enforces requirements for:

• Segregation of customer funds from licensee operating accounts
• Trust account maintenance for customer deposits and transmitted funds
• Customer records documenting fund receipt and transmission
• Escrow or bonding to cover customer losses from licensee insolvency or abandonment

Anti-Money Laundering Compliance

All licensed money transmitters must implement AML/BSA compliance programs meeting or exceeding requirements of:

• USA Patriot Act, Section 352: Anti-money laundering program framework
• FinCEN Guidance: Interpretive rules and expectations
• SAR Filing: Suspicious activity reporting obligations to FinCEN

DFR Coordination:

• Regular examination of AML program effectiveness
• Coordination with federal law enforcement and FinCEN
• Enforcement actions for systemic AML compliance failures

Consumer Dispute Resolution

Requires verification from official sources The DFR processes consumer complaints including:

• Unauthorized transactions
• Lost or misdirected funds
• Failure to transmit funds
• Deceptive practices or unauthorized fees
• Fraudulent activity by licensees or employees

Consumer Access to Resources

• DFR Consumer Help Line: 1-888-877-4894 (toll-free, insurance and financial services)
• Financial Services Email: [email protected]
• Virtual Currency Guidance: DFR publishes consumer information on virtual currencies and digital assets

Regulatory Powers

Authority to Impose Penalties

Under ORS 717.900, the Director of the Department of Consumer and Business Services (DCBS Director, delegated to DFR Administrator) may impose civil penalties for violations of ORS Chapter 717:

Civil Penalty Amounts:

• Per violation: Up to $1,000 per violation
• Continuing violations: Up to $1,000 per day that the violation continues
• Settlement authority: Director may negotiate, compromise, and settle civil penalty amounts

Violation Notice and Cure Period:

• Written notice of violation must be provided to the licensee
• Reasonable cure period (specified in notice) must be afforded
• Penalty only assessed if licensee fails to cure within the specified timeframe
• Procedures governed by ORS 183.745 (Civil penalty procedures)

Enforcement Tools

The DFR may employ multiple enforcement mechanisms against violators:

1. Cease and Desist Orders: Authority to halt unlicensed money transmission activities
2. License Denial, Revocation, or Suspension: Refusal to issue, renew, or maintain a license
3. Civil Penalties: Monetary penalties up to $1,000 per violation (see ORS 717.900)
4. Restitution Orders: Requirement to compensate harmed consumers or customers
5. Administrative Consent Orders: Settlement agreements with specific compliance conditions
6. Public Notice and Enforcement Reports: Disclosure of enforcement actions and violations

Recent Enforcement Actions

• Block Inc./CashApp Enforcement Action (January 2025): Oregon DFR, coordinating with 47 other state financial regulators, took action against Block Inc. for Bank Secrecy Act/Anti-Money Laundering violations. Block agreed to pay $80 million penalty and hire independent consultant to review BSA/AML compliance program.

Consumer Complaint Authority

The DFR receives and investigates consumer complaints against money transmitters and may initiate enforcement actions based on complaint patterns.

Regulatory Role and Function

Legal Foundation

Statutory Authority

The Oregon Division of Financial Regulation derives its authority from ORS Chapter 717 – Money Transmission, officially cited as the "Oregon Money Transmitters Act." This statute establishes the legal framework for licensing, supervision, and enforcement of money transmission activities within the state.

Key Statutory Provisions:

• ORS 717.200: Definitions of money transmission and related financial services
• ORS 717.205: License requirement to conduct money transmission business
• ORS 717.300-717.320: Application, approval, renewal, and enforcement procedures
• ORS 717.900: Civil penalty provisions (up to $1,000 per violation or per day for continuing violations)
• ORS 717.905: Requires verification from official sources Additional enforcement and administrative provisions

Definition of Money Transmission

Under ORS 717, "money transmission" is broadly defined to include:

• Electronic bill paying and payment processing
• Wiring money within the United States
• International wire transfers and remittance services
• Selling or issuing payment instruments
• Receiving money for transmission
• Operating virtual currency exchanges (under Oregon's digital currency provisions)

Regulatory Scope

The DFR's regulatory authority extends to:

• Persons conducting money transmission business (required to be licensed)
• Virtual currency exchanges and activities (required to obtain money transmitter license under ORS 717 as amended)
• Branch operations and authorized agents (subject to licensing and bonding requirements)
• Interstate coordination (through NMLS and multi-state regulatory efforts)

Licensing and Authorization Relevance

License Requirement

Any person or business selling, issuing, or transmitting money in Oregon must obtain a money transmitter license from the Division of Financial Regulation. Operating without a required license is a violation of ORS 717.205.

License Applies To:

• Electronic money transfer services
• Prepaid payment instruments (gift cards, prepaid cards)
• Payment processing services
• Virtual currency exchanges
• International and domestic remittance services
• Check cashing services (separate licensing regime available)

Application Process

Money transmitter license applications are submitted through the Nationwide Multistate Licensing System (NMLS) at https://www.nmlsconsumeraccess.org/.

Key Application Requirements:

1. NMLS Filing and Fee: Nonrefundable application fee of $1,000 (payment through NMLS)
2. Ownership Disclosure: Criminal background and credit check authorization form for all owners, partners, or managers
3. Financial Statements: Last audited financial statements and most recent unaudited statements
4. Net Worth: Minimum demonstration of $100,000 net worth, plus $25,000 for each additional location or authorized delegate
5. Surety Bond: Electronic surety bond documentation through NMLS (see Financial Requirements section)
6. Compliance Program: Description of anti-money laundering (AML) compliance program compliant with USA Patriot Act, Section 352
7. Attestation: Application attested to by authorized owner or officer through NMLS

License Renewal

• Renewal Deadline: December 31 of each calendar year
• Renewal Process: Submitted through NMLS
• Renewal Fee: Requires verification from official sources Renewal fee amount (subject to periodic adjustment by DFR rule)
• Ongoing Requirements: Licensees must maintain current financial statements, net worth requirements, and surety bond coverage

License Revocation and Suspension

The DFR has authority to revoke or suspend money transmitter licenses for violations of ORS 717 or applicable rules. Recent enforcement action example:

• Binance.US: Money transmission license revocation notice issued April 30, 2024, for alleged compliance violations

Minimum Net Worth

Applicants and licensees must maintain:

• Base requirement: Minimum net worth of $100,000
• Additional locations: $25,000 for each additional location or authorized delegate
• Documentation: Must provide audited financial statements (most recent year) and unaudited financial statements (current period)

Surety Bond Requirements

All money transmitter licensees must maintain an active surety bond covering Oregon operations:

Bond Specifications:

• Bond must be filed electronically through NMLS
• Bond must run to the State of Oregon
• Bond covers customer claims for losses arising from licensee violation or abandonment of funds
• Bond must remain in effect for duration of license validity

Capital and Liquidity Standards

Requires verification from official sources The DFR may require licensees to maintain additional liquid capital reserves based on transaction volume and geographic scope of operations. Requires verification from official sources Specific capital adequacy ratios may be established through administrative rules or individual license conditions.

Virtual Currency Money Transmitter Requirements

Oregon Money Transmitters Act (ORS 717) was amended to extend money transmitter licensing requirements to virtual currency activities:

Regulated Activities Include:

• Selling or issuing virtual currencies
• Operating virtual currency exchanges
• Engaging in virtual currency transmission or transfer services
• Custodial services for virtual currency on behalf of customers

Licensing Requirement:

• Persons engaged in virtual currency activities must obtain money transmitter license
• Requirements include net worth, surety bond, and AML compliance program (same as traditional money transmitters)
• NMLS application process applies to virtual currency applicants

DFR Virtual Currency Guidance

The DFR publishes consumer education resources on virtual currencies:

• CONSUMER PROTECTION - Digital or virtual currencies: What are they?
• General guidance on regulatory status and risks associated with virtual currency services

Fintech and Digital Banking

Requires verification from official sources The DFR actively monitors fintech sector developments and has established informal coordination mechanisms with fintech companies to address regulatory questions related to:

• Payment apps and digital wallets
• Blockchain and distributed ledger technologies
• Stablecoins and central bank digital currencies (CBDCs)
• Open banking and payment data sharing

Payments and Money Movement Relevance

The Oregon Division of Financial Regulation (DFR) has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The Oregon Division of Financial Regulation (DFR) does not directly operate payment systems. Its payment-related role includes:

Money transmitters, payment processors, and fintech companies operating in this jurisdiction require licensing or registration with this entity.

Relationship to Other Regulators

Multistate Licensing System (NMLS)

Oregon participates in the Nationwide Multistate Licensing System (NMLS) administered by the Conference of State Bank Supervisors (CSBS) and State Regulatory Registry (SRR):

NMLS Functions:

• Integrated application platform for money transmitter licensing across 49+ states
• Real-time license verification through NMLS Consumer Access database
• Coordinated examination and supervisory data sharing
• Multi-state compliance standard harmonization
• Enforcement action coordination and information sharing

Interstate Information Sharing

The DFR:

• Shares examination findings and compliance information with other state regulators
• Participates in coordinated multi-state enforcement actions (example: Block Inc. coordinated action with 47 states)
• Coordinates with federal regulators (FinCEN, OCC, Federal Reserve, FDIC)
• Maintains NMLS filing system for seamless interstate applications

Reciprocal Licensing Authority

Requires verification from official sources Licensees holding money transmitter licenses in multiple states must comply with each state's specific requirements. Oregon generally recognizes NMLS-coordinated licensing standards while maintaining independent examination authority over Oregon-based operations.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Main Office and Contact Information

Oregon Division of Financial Regulation

• Parent Organization: Department of Consumer and Business Services (DCBS)
• Administrator: TK Keen
• Website: https://dfr.oregon.gov
• Address: Requires verification from official sources 1515 SW Morrison Street, Portland, Oregon 97205

Phone Numbers

• Administration: (503) 947-7980
• Licensing Services: (503) 947-7981
• Consumer Help Line (Toll-Free): 1-888-877-4894

Email Contacts

• Financial Services Licensing: [email protected]
• Financial Services Help: [email protected]
• Insurance Services: [email protected]

Online Resources

• Money Transmitter Licensing Page: https://dfr.oregon.gov/business/licensing/financial/pages/money-transmitters.aspx
• Laws and Rules: https://dfr.oregon.gov/laws-rules/Pages/index.aspx
• Consumer Resources: https://dfr.oregon.gov/help/pages/index.aspx
• Contact Form: https://dfr.oregon.gov/Pages/contact-us.aspx

NMLS

• NMLS Consumer Access: https://www.nmlsconsumeraccess.org/
• NMLS License Lookup: Search money transmitter licenses and status
• NMLS Money Transmitter License Application: https://www.nmlsconsumeraccess.org/

Notes on Naming and Language