Assembly Bill A390

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    390
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of  A. STIRPE, SAYEGH, SANTABARBARA, TAYLOR, WEPRIN,
   BURDICK, STECK -- read once and referred to the Committee on Banks
 
 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:
 
   Section 1. The banking law is amended by adding a new section 652-c to
 read as follows:
   § 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
 RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
 TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN-PERSON, BY
 TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI-
 NESS OR ENTITY, SHALL:
   (A)  PROVIDE  A CLEAR, CONCISE, AND CONSPICUOUS CONSUMER FRAUD WARNING
 PRIOR TO INITIATING THE MONEY TRANSFER  TRANSACTION  AND  ON  ALL  FUNDS
 TRANSFER FORMS USED BY CONSUMERS TO SEND MONEY TO AN INDIVIDUAL;
   (B)  PROVIDE  ANNUAL  CONSUMER  FRAUD  PREVENTION  TRAINING FOR AGENTS
 INVOLVED WITH FUNDS TRANSFERS;
   (C) MONITOR AGENT ACTIVITY RELATING TO CONSUMER FUNDS TRANSFERS; AND
   (D) ESTABLISH A TOLL-FREE NUMBER FOR CONSUMERS TO CALL TO REPORT FRAUD
 OR SUSPECTED FRAUD AND PROVIDE INFORMATION ON HOW TO STOP A TRANSFER.
   2. THE WARNING REQUIRED BY THIS SECTION SHALL NOT APPLY  TO  AN  ELEC-
 TRONIC  FUNDS  TRANSFER  IN  WHICH FUNDS ARE NOT TRANSFERRED DIRECTLY TO
 ANOTHER PERSON AND ARE NOT AVAILABLE FOR IMMEDIATE USE.
   3. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  PUNISHABLE
 BY  A  CIVIL  PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
 FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01505-01-5