KRS 286.13-110: Written complaint -- Investigation -- Routine examination -- Powers of

commissioner -- Licensee deemed to consent to investigation -- Examination-

related information. (Effective April 30, 2027)

(1) Any person may file a written complaint with the commissioner relating to:

(a) Virtual currency kiosk business in this state; or

(b) The conduct of any person engaged or participating in virtual currency kiosk

business in this state.

(2) The commissioner may conduct an investigation, upon complaint or otherwise, of

any virtual currency kiosk operator or other person within or outside this state that

he or she deems necessary to:

(a) Discover violations of this subtitle, including violations of any administrative

regulation promulgated, or order issued, under this subtitle; or

(b) Secure information necessary for the proper enforcement of this subtitle.

(3) (a) The commissioner may conduct routine examinations of the virtual currency

kiosk affairs, business, offices, books, accounts, and records of lic ensees and

agents of licensees.

(b) A licensee shall pay a reasonable fee sufficient to cover the cost of each

routine examination based upon fair compensation for time and actual

expenses.

(c) Upon written notice of the amount assessed under paragraph (b) of this

subsection, the licensee shall become liable for and pay the assessment to the

department.

(4) To the extent necessary to conduct any investigation or examination authorized

under this section, the commissioner may:

(a) Compel the attendance of any person or obtain any books, accounts, or

records by subpoenas;

(b) Administer oaths and affirmations;

(c) Examine under oath or affirmation all persons whose testimony he or she may

require; and

(d) To the extent permitted under federal law, access and review records and

related information relating to compliance with federal anti -money laundering

laws, including suspicious activity reports filed pursuant to the Bank Secrecy

Act, 31 U.S.C. sec. 5311 et seq., as amended.

(5) As a condition of licensure under this subtitle, a licensee and its agents shall, by

operation of law, be deemed to consent to any examination or investigation

conducted under this section, whether or not prior notice is give n to the licensee or

agent.

(6) When conducting an investigation or examination, the commissioner may do any of

the following:

(a) Conduct an on-site or off-site investigation or examination;

(b) Participate in a joint or concurrent investigation or examin ation with one (1)

or more states or federal agencies, including a multistate investigation or

examination; and

(c) Accept and rely upon an investigation or examination report of one (1) or

more states or federal agencies, including a multistate investigat ion or

examination report.

(7) (a) Except as provided in paragraph (b) of this subsection and KRS 286.13 -115, a

routine examination report, related correspondence, and examination -related

information shall:

1. Be considered confidential by law and privileged; and

2. Not be subject to disclosure under KRS 61.870 to 61.884.

(b) A licensee:

1. May disclose a Kentucky routine examination report to a financial

institution upon written request from the financial institution for the

purpose of assisting the financ ial institution in its compliance with the

Bank Secrecy Act, 31 U.S.C. secs. 5311 to 5332 and 31 C.F.R. pt. 103;

and

2. Shall provide written notice to the commissioner of a disclosure made

under this paragraph at the same time that the disclosure is made.