senate Bill S4210A

Relates to violations by unlicensed transmitters of money

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Mar / 2011
    • REFERRED TO BANKS
  • 18 / May / 2011
    • 1ST REPORT CAL.782
  • 23 / May / 2011
    • 2ND REPORT CAL.
  • 24 / May / 2011
    • ADVANCED TO THIRD READING
  • 17 / Jun / 2011
    • PASSED SENATE
  • 17 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2011
    • REFERRED TO BANKS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO BANKS
  • 07 / Mar / 2012
    • 1ST REPORT CAL.316
  • 12 / Mar / 2012
    • 2ND REPORT CAL.
  • 13 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 27 / Mar / 2012
    • AMENDED ON THIRD READING (T) 4210A
  • 18 / Apr / 2012
    • PASSED SENATE
  • 18 / Apr / 2012
    • DELIVERED TO ASSEMBLY
  • 18 / Apr / 2012
    • REFERRED TO BANKS

Summary

Relates to increasing penalties for violations by unlicensed transmitters of money.

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Bill Details

Versions:
S4210
S4210A
Legislative Cycle:
2011-2012
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd ยง650, Bank L

Sponsor Memo

BILL NUMBER:S4210A

TITLE OF BILL:
An act
to amend the banking law, in relation to violations by unlicensed
transmitters of money

PURPOSE:
To raise the criminal penalties for unlicensed money transmitter
activities in those situations where the person knows that the
funds involved are the proceeds of criminal conduct

SUMMARY OF PROVISIONS:
This bill amends Section 650(2) of the Banking Law to separate the
current Class E felony penalties for the unlicensed transmission of
money into two categories: 1) the existing violation regarding the
unlicensed transmission of funds in excess of a specified threshold
would continue to be a Class E felony; and 2) the existing violation
regarding the unlicensed transmission of funds where the transmitter
knows that such funds are the proceeds of any criminal conduct would
be raised from a Class E felony to a Class D felony.

JUSTIFICATION:
This bill would increase the criminal penalties for the unlicensed
transmission of money in certain situations. The existing penalties
were set in 1990. Under that law, it is a Class A misdemeanor to
operate as an unlicensed money transmitter, with the penalty rising
to a Class E felony if the transmitter either transmits more than a
specified threshold amount or transmits money knowing that it is the
proceeds of any criminal conduct.

It is important to have appropriate and significant penalties in order
to help deter crime and to appropriately punish those who commit such
crimes. There continues to be much attention at both the national and
state levels to possible abuses involving money transmitters. In
addition to the potential for consumer fraud, illegal money
transmitters are often involved in laundering the proceeds of
criminal activity. Some federal investigations have even focused on
the use of money transmitters to launder funds in support of terrorist
activities.

The regulation of the money transmission industry is important for
protecting consumers and preventing criminal activities. Unlicensed
transmitters seek to evade the regulatory system and are likely to be
involved in such illegal activities. It is appropriate to target
with higher penalties those illegal operators who are helping to
facilitate criminal activities through the laundering of criminal
proceeds.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4210--A
    Cal. No. 316

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 23, 2011
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  reported favorably from said committee, ordered to  first  and  second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

AN ACT to amend the banking law, in relation to violations by unlicensed
  transmitters of money

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Subdivision  2  of  section  650 of the banking law, as
amended by chapter 543 of the laws  of  1990,  is  amended  to  read  as
follows:
  2.  a.  Any person who either (1) engages in the business of receiving
money for transmission or transmitting the same or (2) sells  or  issues
New  York  instruments  or New York traveler's checks as those terms are
defined by section six hundred fifty-three of this  chapter,  without  a
license  therefor  obtained  from the superintendent as provided in this
article, shall be guilty of a [Class] CLASS A misdemeanor.
  b. Any person who violates paragraph a of this subdivision and in  the
course of that violation:
  (1)  knowingly receives or agrees to receive for transmission from one
or more individuals a total of ten thousand dollars or more in a  single
transaction,  a  total  of twenty-five thousand dollars or more during a
period of thirty days or less, or a total of two hundred fifty  thousand
dollars or more during a period of one year or less; or
  (2) knowingly sells or issues New York instruments or New York travel-
er's  checks to one or more individuals totaling ten thousand dollars or
more in a single transaction, a total of twenty-five thousand dollars or
more during a period of thirty days or less, or a total of  two  hundred

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10442-02-2

S. 4210--A                          2

fifty thousand dollars or more during a period of one year or less SHALL
BE GUILTY OF A CLASS E FELONY; [or
  (3)]  C. ANY PERSON WHO VIOLATES THE PROVISIONS OF PARAGRAPH A OF THIS
SUBDIVISION AND IN THE COURSE OF SUCH VIOLATION:
  (1) knowingly engages in the business of receiving money for transmit-
ting or transmitting the same, knowing such money to be the proceeds  of
any criminal conduct; or
  [(4)]  (2)  knowingly sells or issues New York instruments or New York
traveler's checks as those terms are  defined  by  section  six  hundred
fifty-three  of  this  chapter, knowing such instruments or checks to be
purchased with the proceeds of or derived  from  any  criminal  conduct;
shall be guilty of a class [E] D felony.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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