Alabama has a new law that covers financial transactions in the online age.
This month the Alabama Monetary Transmission Act became law. The Alabama Legislature passed it back in May.
Replacing the 1961 “Sale of Checks Act,” the new law covers everything from bitcoin to regulation of money transfers. It also gives law enforcement new tools to track international financial crimes.
Alabama Securities Commission Director Joseph Borg called its passage important.
“This significant legislation will help streamline our regulatory and enforcement activities to meet the challenges presented by modern technology,” Borg said, “such as the use of cybercurrency, online money transmissions and further assists law enforcement in preventing money laundering and activities involving the illegal international transfer of funds.”
Officials said the old law did not have administrative and enforcement authority and predated the digital age.
For example, the Alabama Monetary Transmission Act includes “virtual” currency such as bitcoin, and lays out a record-keeping process, allowing the Alabama Securities Commission to audit those records. It regulates money transmitters and covers non-banking entities that engage in checks and money transfers, as well as debt management services.
However, it exempts several establishments, such as banks, bank holding companies, securities-clearing firms, payment and settlement processors, broker-dealers and government entities.