S T A T E O F N E W Y O R K
________________________________________________________________________
256
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. PERALTA, ESPAILLAT, PERRY -- Multi-Sponsored by
-- M. of A. ALFANO, BARRA, PHEFFER, ROBINSON -- read once and referred
to the Committee on Banks
AN ACT to amend the banking law, in relation to money services busi-
nesses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature hereby finds and
declares that money services businesses play a vital role in the economy
of New York state and that access by the public to efficient, economical
and safe money services businesses is a public good. Money services
businesses recognize that protection of the financial system from abuse
from money launderers and terrorist financiers is a paramount and
compelling state interest and therefore comply with standards estab-
lished by federal and state statutes and regulations, including the Bank
Secrecy Act (Public Law 91-508 and 31 U.S.C. 53 subchapter II) and the
"Interagency Interpretative Guidance on Providing Banking Services to
Money Services Businesses Operating in the United States" issued by the
Financial Crimes Enforcement Network (FinCEN) of the U.S. treasury
department. Furthermore, in ensuring that money services businesses are
partners in our state's fight against money laundering and terrorist
financing, money services businesses are subject to strict licensing and
background verification requirements and, in many cases, bonding
requirements by the superintendent of banks. Moreover, money services
businesses are subject to constant supervision and examination by the
superintendent of banks for safety and soundness, as well as compliance
with the bank secrecy act and other anti-money laundering and anti-ter-
rorist financing laws and regulations. Nevertheless, the legislature
finds that banks in the state have closed accounts and refused to open
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00088-01-9
A. 256 2
accounts for money services businesses citing requirements of the bank
secrecy act.
Therefore, the legislature finds and declares that the systematic and
unchecked closing of money services businesses runs counter to the goals
of protecting the state and its financial system.
S 2. The banking law is amended by adding a new section 9-v to read as
follows:
S 9-V. MONEY SERVICES BUSINESS. 1. FOR PURPOSES OF THIS SECTION THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "MONEY SERVICES BUSINESS" SHALL MEAN LICENSED CURRENCY DEALERS AND
EXCHANGERS; CHECK CASHERS; ISSUERS OF TRAVELERS' CHECKS, MONEY ORDERS OR
STORED VALUE; SELLERS OR REDEEMERS OF TRAVELERS' CHECKS, MONEY ORDERS,
OR STORED VALUE; MONEY TRANSMITTERS; AND THE UNITED STATES POSTAL
SERVICE;
(B) "BANKING SERVICES" SHALL MEAN ALL NORMAL BANKING SERVICES OFFERED
BY A BANK TO THE PUBLIC, INCLUDING THE DEPOSIT OF CASH AT A BANK BRANCH
OR AT A BANK VAULT AND AUTOMATED CLEARING HOUSE SERVICES;
(C) "AUTOMATED CLEARING HOUSE SERVICES" SHALL MEAN DIRECT DEPOSIT OF
PAYROLL, SOCIAL SECURITY AND OTHER GOVERNMENT BENEFITS AND TAX REFUNDS;
DIRECT PAYMENT OF CONSUMER BILLS SUCH AS MORTGAGES, LOANS, UTILITY BILLS
AND INSURANCE PREMIUMS; BUSINESS-TO-BUSINESS PAYMENTS; E-CHECKS; E-COM-
MERCE PAYMENTS; AND FEDERAL, STATE AND LOCAL TAX PAYMENTS; AND
(D) "BANKING INSTITUTION" SHALL MEAN ANY STATE OR FEDERALLY CHARTERED
BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR CRED-
IT UNION.
2. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO BANKING
INSTITUTION IN THE STATE SHALL DENY BANKING SERVICES TO ANY MONEY
SERVICES BUSINESS ON THE BASIS OF COMPLIANCE WITH THE BANKING SECRECY
ACT (PL 91-508 AND 31 USC 53 SUBCHAPTER II) WITHOUT THE APPROVAL OF THE
SUPERINTENDENT.
3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO BANKING
INSTITUTION SHALL DENY BANKING SERVICES TO ANY MONEY SERVICES BUSINESS
WITHOUT PROVIDING SUCH MONEY SERVICES BUSINESS AN OPPORTUNITY TO MEET
ANY REASONABLE REQUIREMENTS SET BY THE BANKING INSTITUTION FOR OPENING
AND MAINTAINING SUCH SERVICES.
4. THE BANKING INSTITUTION SHALL PROVIDE TO THE SUPERINTENDENT A WRIT-
TEN STATEMENT SETTING FORTH IN REASONABLE DETAIL THE REASON FOR THE
DENIAL OF SUCH BANKING SERVICES TO ANY MONEY SERVICE BUSINESS. SUCH
WRITTEN STATEMENT SHALL BE REVIEWED BY THE SUPERINTENDENT WHO, AFTER
SUCH REVIEW, MAY DIRECT THE BANKING INSTITUTION TO OFFER SERVICES IF THE
SUPERINTENDENT FINDS:
(A) THE MONEY SERVICES BUSINESS POSSESSES ADEQUATE COMPLIANCE SAFE-
GUARDS AS DETERMINED BY ITS MOST RECENT STATE AUDIT;
(B) THE BANKING INSTITUTION MEETS THE REQUIREMENTS OUTLINED IN THE
"INTERAGENCY INTERPRETATIVE GUIDANCE ON PROVIDING BANKING SERVICES TO
MONEY SERVICES BUSINESSES OPERATING IN THE UNITED STATES" BY THE FINAN-
CIAL CRIMES ENFORCEMENT NETWORK (FINCEN) OF THE UNITED STATES TREASURY
DEPARTMENT; AND
(C) THE BANKING INSTITUTION, AT THE TIME OF THE REVIEW, DID NOT HOLD A
DISPROPORTIONATE AMOUNT OF MONEY SERVICES BUSINESS ACCOUNTS.
S 3. This act shall take effect immediately.