STATE OF NEW YORK
________________________________________________________________________
5864--C
2021-2022 Regular Sessions
IN ASSEMBLY
March 1, 2021
___________
Introduced by M. of A. STIRPE -- read once and referred to the Committee
on Banks -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- again amended on third reading, ordered reprinted,
retaining its place on the order of third reading
AN ACT to amend the banking law, in relation to requiring transmitters
of money to provide a certain warning to consumers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 652-c to
2 read as follows:
3 § 652-c. Required warning. 1. A person engaged in the business of
4 receiving money for transmission or transmitting money by wire or elec-
5 tronic transfer which, at the request of an individual who in-person, by
6 telephone or electronic means transmits funds to another person, busi-
7 ness or entity, shall:
8 (a) provide a clear, concise, and conspicuous consumer fraud warning
9 prior to initiating the money transfer transaction and on all funds
10 transfer forms used by consumers to send money to an individual;
11 (b) provide annual consumer fraud prevention training for agents
12 involved with funds transfers;
13 (c) monitor agent activity relating to consumer funds transfers; and
14 (d) establish a toll-free number for consumers to call to report fraud
15 or suspected fraud and provide information on how to stop a transfer.
16 2. The warning required by this section shall not apply to an elec-
17 tronic funds transfer in which funds are not transferred directly to
18 another person and are not available for immediate use.
19 3. A violation of the provisions of this section shall be punishable
20 by a civil penalty of not more than two hundred fifty dollars for the
21 first violation and five hundred dollars for each subsequent violation.
22 § 2. This act shall take effect on the one hundred eightieth day after
23 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03068-09-1
