Money transmission companies must use two-factor login checks for user accounts
Companies licensed under California's Money Transmission Act can't let users log in without two-factor, multifactor or equally secure authentication, a way to reverify identity, and a way for users to report errors or suspected fraud on the same platform.
Who it affects
Licensed money transmitters and their customers
When
This law takes effect on January 1, 2027; the changes described here start on January 1, 2028.
- : Signed into law
- : Law takes effect
- : The changes described here start to apply
Official text
California SB 505: Money Transmission Act: authentication.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.