(a) The commissioner may conduct an examination or investigation of a licensee or authorized delegate, or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter, as reasonably necessary or appropriate to administer and enforce this chapter, rules implementing this chapter, and other applicable law, including the Bank Secrecy Act and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 (Pub. L. No. 107-56).
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Terms Used In Tennessee Code 45-7-107

  • Authorized delegate: means a person that a licensee designates to engage in money transmission on behalf of the licensee. See Tennessee Code 45-7-103
  • Bank: means any person, as hereinafter defined, doing a banking business subject to the laws of this or any other jurisdiction and, for the purposes of supervision, examination and liquidation, includes industrial investment companies and industrial banks authorized by chapter 5 of this title. See Tennessee Code 45-1-103
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-7-103
  • Individual: means a natural person. See Tennessee Code 45-7-103
  • Licensee: means a person licensed under this chapter. See Tennessee Code 45-7-103
  • Person: means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the commissioner. See Tennessee Code 45-7-103
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) The commissioner may:

(1) Conduct an examination either on-site or off-site as the commissioner may reasonably require;
(2) Conduct an examination in conjunction with an examination conducted by representatives of other state agencies, agencies of another state, or of the federal government;
(3) Accept the examination report of another state agency, an agency of another state, or of the federal government, or a report prepared by an independent accounting firm, which on being accepted, is considered for all purposes as an official report of the commissioner; and
(4) Summon and examine under oath a key individual, agent, or employee of a licensee, authorized delegate, or any other person concerning the condition and affairs of a licensee, and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.
(c) A licensee or authorized delegate shall provide, and the commissioner or the commissioner’s staff shall have full and complete access to, all records the commissioner may reasonably require to conduct a complete examination. The records must be provided at the location and in the format specified by the commissioner.
(d) At the commissioner’s discretion, written notice of the examination may be provided to the licensee or authorized delegates.
(e) Upon reasonable cause, the commissioner may conduct an investigation or examination of any unlicensed person to determine whether violations of this chapter have occurred or are occurring. In conducting the examination, the commissioner has the applicable powers provided pursuant to § 45-1-107.
(f) An unlicensed person subject to the license requirements of this chapter, that is examined or investigated in accordance with this chapter, shall pay to the commissioner the reasonable and actual expenses of the investigation or examination.
(g) Prior to January 1, 2025, unless otherwise directed by the commissioner, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee or the licensee’s authorized delegates. On or after January 1, 2025, the costs for an examination or investigation of licensees must be assessed pursuant to § 45-1-118(i).
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