Money Transmitters Data Security Requirements
Summary
Mississippi Governor signed HB1596 into law on April 2, 2026, requiring money transmitters licensed under the Money Transmission Modernization Act to implement comprehensive data security measures and customer protections. The bill requires licensees to establish information security programs with designated qualified individuals, conduct risk assessments, notify the Commissioner of Banking and Consumer Finance of data breaches involving unencrypted customer information, train authorized delegates on elder financial exploitation, and provide disclosures for money transmission and kiosk transactions. Virtual currency kiosks are now also regulated under the Act.
What changed
HB1596 enacts significant new requirements for Mississippi-licensed money transmitters. Key provisions include: (1) mandatory information security programs with qualified individuals responsible for oversight, implementation, and enforcement; (2) minimum standards for security programs including risk assessments; (3) notification requirements to the Commissioner of Banking and Consumer Finance when unencrypted customer information is acquired without authorization; (4) training requirements for authorized delegates to recognize and respond to elder financial abuse and exploitation; (5) new disclosure requirements for customers conducting money transmission or kiosk transactions; and (6) virtual currency kiosks are now brought under the regulatory framework of the Money Transmission Modernization Act.
Money transmitters operating in Mississippi must review the new statutory requirements and take immediate steps to implement compliant information security programs. Entities must designate qualified individuals to oversee data security and ensure risk assessments are conducted. All licensees and their authorized delegates must be trained on elder financial exploitation recognition. Virtual currency kiosk operators should confirm their licensing status under the amended Act. Penalties for non-compliance may include license revocation or other enforcement actions under Mississippi money transmission law.
What to do next
- Designate a qualified individual to be responsible for overseeing, implementing, and enforcing an information security program
- Conduct risk assessments and establish minimum security standards for the information security program
- Implement elder financial exploitation training for all authorized delegates
- Update disclosure practices for money transmission and kiosk transactions to comply with new Section 75-16-89
Source document (simplified)
ChangeBridge / Mississippi / HB1596 Signed by Governor HB1596 House Bill Signed by Governor 2026-04-02
Money transmitters; require to implement certain data security measures and customer protections.
An Act To Require A Money Transmitter Licensed Under The Money Transmission Modernization Act To Implement Safeguards To Protect Customer Information And Increase Data Security; To Require A Licensee To Designate A Qualified Individual To Be Responsible For Overseeing, Implementing And Enforcing An Information Security Program; To Provide The Minimum Standards And Requirements For The Information Security Program And To Require Risk Assessments; To Require Notification To The Commissioner Of Banking And Consumer Finance When Unencrypted Customer Information Is Acquired Without The Authorization Of The Affected Individual; To Provide Certain Exceptions; To Amend Section 75-16-11, Mississippi Code Of 1972, To Provide That Funds Coming Into The Possession Of The Commissioner As A Result Of The Money Transmission Modernization Act Shall Be Deposited Into The Consumer Finance Fund; To Amend Sections 75-16-25, 75-16-31 And 75-16-43, Mississippi Code Of 1972, To Regulate Virtual Currency Kiosks Under The Provisions Of The Money Transmission Modernization Act; To Amend Section 75-16-51, Mississippi Code Of 1972, To Require A Licensee To Provide Training Materials To Help Authorized Delegates Recognize Financial Abuse And Financial Exploitation Of An Elder Adult And Respond Appropriately In Such Situations; To Amend Section 75-16-65, Mississippi Code Of 1972, To Include The Word "investments"; To Create New Section 75-16-89, Mississippi Code Of 1972, To Require A Licensee To Provide Certain Information To The Purchaser In Connection With Each Money Transmission Or Kiosk Transaction Conducted By The Licensee Directly Or Through An Authorized Delegate; And For Related Purposes.
Bill Details
State Mississippi
Session 2026 Regular Session
Chamber House
Official Source billstatus.ls.state.ms.us/2026/pdf/history...
LegiScan View on LegiScan
Sponsors
Shane Aguirre (Rep - R)
Action History
2026-04-06 S Enrolled Bill Signed 2026-04-02 H Enrolled Bill Signed 2026-03-31 H Conference Report Adopted 2026-03-30 S Conference Report Adopted 2026-03-29 H Conference Report Filed 2026-03-29 S Conference Report Filed 2026-03-23 S Conferees Named Johnson,Blackwell,Brumfield 2026-03-23 H Conferees Named Aguirre,Boyd (37th),Varner 2026-03-17 H Decline to Concur/Invite Conf 2026-03-11 S Returned For Concurrence 2026-03-10 S Passed As Amended 2026-03-10 S Amended 2026-03-03 S Title Suff Do Pass As Amended 2026-02-26 S DR - TSDPAA: BF To AC 2026-02-19 S Referred To Business and Financial Institutions;Accountability, Efficiency, Transparency 2026-02-12 H Transmitted To Senate 2026-02-10 H Passed As Amended 2026-02-10 H Amended 2026-01-29 H Title Suff Do Pass 2026-01-19 H Referred To Banking and Financial Services
Votes
2026-02-10 House Passed As Amended Yea: 113 Nay: 0 2026-03-10 Senate Passed As Amended Yea: 52 Nay: 0 2026-03-30 Senate Conference Report Adopted Yea: 52 Nay: 0 2026-03-31 House Conference Report Adopted Yea: 100 Nay: 0
Committee Referrals
2026-01-19 H Banking and Financial Services 2026-02-19 S Business and Financial Institutions
Amendments
0000-00-00 House Amendment No 1 Adopted 0000-00-00 Senate Committee Amendment No 1
Bill Text Versions
2026-01-21 Introduced 2026-02-12 Engrossed 2026-04-02 Enrolled Legislative data powered by LegiScan (CC BY 4.0)
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