senate Bill S2931

2013-2014 Legislative Session

Relates to violations by unlicensed transmitters of money

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to banks
Feb 12, 2013 reported and committed to codes
Jan 25, 2013 referred to banks

Votes

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Feb 12, 2013 - Banks committee Vote

S2931
18
0
committee
18
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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S2931 - Bill Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Amd ยง650, Bank L
Versions Introduced in 2011-2012 Legislative Session:
S4210A

S2931 - Bill Texts

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

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BILL NUMBER:S2931

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 transmit-
ter 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 tran-
smitter 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 addi-
tion 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 transmit-
ters 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

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

                                  2931

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 25, 2013
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

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
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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08150-01-3

S. 2931                             2

  (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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