KRS 286.11-027: Examinations and investigations.

(1) The commissioner may conduct an examination or investigation of a licensee or any

of its agents, as it relates to the business of money transmission.

(2) The commissioner may conduct an examination or investigation in conjunction with

representatives of ot her agencies of this state or agencies of another state or of the

federal government. Instead of an examination, the commissioner may accept the

examination report of an agency of this state or of another state or of the federal

government or a report prep ared by an independent licensed or certified public

accountant. The reasonable expenses incurred by the department, other Kentucky

agencies, agencies of another state, agencies of the federal government, or an

independent licensed or certified accountant i n making such examination,

investigation, or report shall be borne by the licensee.

(3) A joint examination or an acceptance of an examination report does not preclude

the commissioner from conducting an examination as provided by law. A joint

report or a report accepted under this subsection is an official report of the

commissioner for all purposes.

(4) A licensee or agent is deemed to consent to the commissioner's examination or

investigation, whether or not prior notice is given to the licensee or agent , of the

books, records, and business operations of the licensee or agent of the licensee.

(5) A report of examination of a licensee under this section shall be considered

confidential and privileged and not subject to disclosure under the Kentucky Open

Records Act, KRS 61.870 to 61.884. However, a licensee may disclose a Kentucky

report of examination to a financial institution upon written request from the

financial institution for the purpose of assisting the financial institution in its

compliance with the Bank Secrecy Act, 31 U.S.C. secs. 5311 to 5332 and 31 C.F.R.

pt. 103. The licensee shall provide written notice to the commissioner of the

disclosure of the Kentucky report of examination at the same time that disclosure is

made to the financial institution.