Monthly Bulletin – April 2025

Notice of Proposed Rulemaking – Money Transmission Act / Digital Financial Assets Law

The Commissioner of the Department of Financial Protection and Innovation (Department) proposes to amend the California Code of Regulations as set forth in the documents below, after considering all comments, objections, and recommendations regarding the proposed action.

• Notice of Proposed Action Notice of Proposed Action
• Text of Proposed Regulations Text of Proposed Regulations
• Initial Statement of Reasons Initial Statement of Reasons
• NMLS Company Form (MU1) PRO 02-23 – NMLS Company Form (MU1)
• NMLS Individual Form (MU2) PRO 02-23 – NMLS Individual Form (MU2)
• DFPI Form 2 (Personal Financial Statement) PRO 02-23 – DFPI Form 2 (Personal Financial Statement)

TIME FOR COMMENTS

The Commissioner invites interested parties to submit comments by May 19, 2025.

Submit comments by any of the following methods:

• By email to: [email protected]. Please include “PRO 02-23” in the subject line. Comments submitted as attachments in Microsoft Word format (.docx) are preferred.
• By postal mail to: Department of Financial Protection and Innovation / Attn: Diana Pha, Regulations Coordinator, Legal Division / 651 Bannon Street, Ste. 300 / Sacramento, CA 95811

Sigue Money Transmitter Settlement

We announced an agreement with Southern California-based money transmitter Sigue Corporation for failure to meet outstanding liabilities following its collapse in March 2024. Sigue’s failure left thousands of California customers unable to access at least $2 million dollars in previously purchased money orders and remittances. Affected customers can file a claim on our website in English and Spanish.

California celebrates 175^th birthday

The California 175 campaign launched March 30. It celebrates California’s dodransbicentennial – its 175th year of statehood and initiates an effort to commemorate the rich and full history of the Golden State — its people, its progress, and its promise — and invites Californians across all regions and backgrounds to take part in honoring the milestone. This will include celebrations across the state, including on September 9, 2025, to mark 175 years since California joined the Union on September 9, 1850.

For information: English | Spanish

Escrow News and Reminders

Some Escrow Annual Reports Due Apr. 15

Escrow agents are required to submit to the Commissioner an annual report prepared by an independent certified public accountant (Financial Code section 17406) within 105 days after the close of the escrow agent’s fiscal year. The annual report includes audited financial statements and required supplemental information.

If your fiscal year ended on Dec. 31, 2024, your annual report is due Apr. 15, 2025. Please have your CPA email your report to [email protected] by the deadline using a secured, encrypted delivery system. The use of a secured dropbox is also acceptable. If your CPA is unable to submit the annual report electronically, it can be mailed to Queen Padilla, Senior Financial Institutions Examiner, Escrow Law, Department of Financial Protection and Innovation, 320 West Fourth Street, Suite 750, Los Angeles, CA 90013.

Penalties for failure to file the annual report by the due date or to include required information are $100 per day for the first five days a report is late and $500 per day thereafter (Financial Code section 17408). Failure to file a report or to include any required information may also result in the suspension or revocation of an escrow agent’s license or prompt an immediate examination (Financial Code section 17602.5). For questions about the annual reports, email [email protected].

Escrow Bulletin on Social Engineering Scams

The DFPI has issued the following Escrow Bulletin regarding Social Engineering Scams targeting Licensed Escrow Companies (https://dfpi.ca.gov/wp-content/uploads/2025/02/EscrowBulletin0225.pdf). Questions regarding this bulletin should be directed to [email protected].

DFPI Secures Settlement with GSPartners, Urges CA Clients to Submit Refund Claims by May 22

On Feb. 20, DFPI announced that Californians who deposited money or crypto with GSPartners are now eligible for a refund, thanks to DFPI. This settlement is an enormous victory for consumers who may have invested in unqualified securities via its multi-level marketing (MLM) platform.

If you or someone you know has put funds into GSPartners, there’s still time to reclaim your funds. Submit a claim by May 22, 2025 at gsbsettlement.com.

New Contact Information for the DFPI

The DFPI has relocated our Sacramento offices as of March 10, 2025, to the new May Lee State Office Complex. Please save the following address to your records:

To ensure mail is properly delivered to the Department, please use the new address.

Industry News

CFPB Offers Regulatory Relief for Small Loan Providers

The Consumer Financial Protection Bureau is announcing today that, with respect to the Payday, Vehicle Title, and Certain High-Cost Installment Loans Regulation, it will not prioritize enforcement or supervision actions with regard to any penalties or fines associated with the Payment Withdrawal provisions and the Payment Disclosure provisions once they became operative on March 30, 2025. More.

FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities

On April 7, 2022, the FDIC issued a Financial Institution Letter (FIL-16-2022) titled Notification of Engaging in Crypto-Related Activities, which established a prior notification requirement for FDIC-supervised institutions that wish to engage in crypto-related activities. The FDIC is rescinding FIL-16-2022 and providing new guidance to clarify that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval. More.

Upcoming Consumer Education Events

Each month we educate consumers through community events and a monthly webinar.

DFPI’s Financial Literacy Webinar

April 23, 12 – 1 p.m. | Virtual 

In celebration of Financial Literacy Month, we invite you to join our Financial Literacy Resource Webinar.

During this virtual session, a panel of experts will discuss key factors that influence your financial habits and affect your relationship with spending. In addition, you will learn about the financial resources available to consumers, such as state programs, consumer safety, and financial education.

LICENSEE ACTIVITY

Bank Activity

New Bank Activity

PayServices Bank
Proposed location: Street address to be determined in Calabasas
Correspondent: Lionel Danenberg
1040 SW 21st Street, Boca Raton, FL 33486
Phone: 561-306-3861
Filed: 3/05/25

Merger

EH National Bank, Los Angeles, to merge with and into Genesis Bank, Newport Beach
Filed: 3/17/25

Credit Union Activity

Merger

ACU Credit Union, Abilene, Texas, to merge with and into University Credit Union, Los Angeles, California
Approved: 2/01/25
Effected: 2/01/25

LA Financial Federal Credit Union, Arcadia, to merge with and into Credit Union of Southern California, Anaheim
Approved: 3/01/25
Effected: 3/01/25

Purchase of Business Unit

Frontwave Credit Union, Oceanside, to purchase and assume Community Valley Bank, El Centro
Filed: 2/18/25

Foreign (Other Nation) Bank Activity

Relocation of Office

Banque Transatlantique
From 26 O’Farrell Street, to 114 Sansome Street, San Francisco (Representative Office)
Filed: 1/24/25
Approved: 3/21/25
Effected: 1/10/25

Discontinuance

BNP Paribas
To discontinue the Wholesale Branch at 180 Montgomery Street, San Francisco, and to establish a Representative Office at the same location
Effected: 3/28/25

Foreign (Other State) Bank Activity

New Office

Blue Trust, Inc.
2281 West 190th Street, Torrance (facility – non-insured)
Approved: 3/26/25

Discontinuance of Office

Evolve Bank & Trust
4695 MacArthur Court, Newport Beach
Discontinued: 12/31/24

Evolve Bank & Trust
28924 S. Western Avenue, Rancho Palos Verdes
Discontinued: 2/28/25

Trust Company Activity

Change of Name

Enterprise Trust & Investment Company to change its name to Enterprise Trust Company
Filed: 3/27/25

Money Transmitter Activity

New Money Transmitter

Bivo Inc.
Opened: 3/24/25

Hopper Money (USA), Inc.
Opened: 3/06/25

Rippling Payments, Inc.
Opened: 3/06/25