Legislation
SECTION 408-A
Unlicensed activities prohibited
Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 4
§ 408-a. Unlicensed activities prohibited. (a) For the purposes of
this section, a "prohibited unlicensed act" shall mean:
(1) engaging in an activity in this state for which a license,
certification, registration, authorization, charter, accreditation or
incorporation is required by this chapter or the banking law, or the
regulations promulgated thereunder, without such license, certification,
registration, authorization, charter, accreditation or incorporation or
an exemption from such requirement; or
(2) any act or omission by a person who is required by this chapter or
the banking law, or the regulations promulgated thereunder, to be
licensed, certified, registered, authorized, chartered, accredited or
incorporated and is not so licensed, certified, registered, authorized,
chartered, accredited or incorporated, or exempted from such
requirement, if such act or omission would constitute a violation of
this chapter or the banking law, or the regulations promulgated
thereunder, subject to monetary penalty if such person were so licensed,
certified, registered, authorized, chartered, accredited or
incorporated.
(b) In addition to any civil or criminal liability provided by law,
the superintendent may, after notice and a hearing, levy a civil penalty
for any prohibited unlicensed act as follows:
(1) The penalty for a prohibited unlicensed act that relates to the
requirements of the banking law or the regulations promulgated
thereunder shall be the same as the penalty provided in section
forty-four of the banking law for any violation of the banking law.
(2) The penalty for a prohibited unlicensed act that relates to the
requirements of this chapter or the regulations promulgated thereunder
shall be the same as the penalty provided for in section four hundred
eight of this article for violations of this chapter or the regulations
promulgated thereunder. However, the superintendent shall not impose or
collect any penalty for a prohibited unlicensed act pursuant to this
paragraph if the superintendent imposes or collects any penalty pursuant
to paragraph one of this subsection or paragraphs two or three of
subsection (a) of section four hundred eight of this article for the
same act or omission.
(3) If a prohibited unlicensed act results in consumer harm, the
penalty shall be not more than double the penalty amount applicable to
such violation set forth in paragraphs one and two of this subsection.
(c) Civil penalties received by the superintendent pursuant to this
section shall be applied in the same manner as civil penalties received
by the superintendent pursuant to section four hundred eight of this
chapter.
(d) In addition to any other penalty or sanction imposed upon a person
by law for a prohibited unlicensed act, after notice and a hearing, the
superintendent may issue an order directing such person to pay
restitution for such unlicensed act.
this section, a "prohibited unlicensed act" shall mean:
(1) engaging in an activity in this state for which a license,
certification, registration, authorization, charter, accreditation or
incorporation is required by this chapter or the banking law, or the
regulations promulgated thereunder, without such license, certification,
registration, authorization, charter, accreditation or incorporation or
an exemption from such requirement; or
(2) any act or omission by a person who is required by this chapter or
the banking law, or the regulations promulgated thereunder, to be
licensed, certified, registered, authorized, chartered, accredited or
incorporated and is not so licensed, certified, registered, authorized,
chartered, accredited or incorporated, or exempted from such
requirement, if such act or omission would constitute a violation of
this chapter or the banking law, or the regulations promulgated
thereunder, subject to monetary penalty if such person were so licensed,
certified, registered, authorized, chartered, accredited or
incorporated.
(b) In addition to any civil or criminal liability provided by law,
the superintendent may, after notice and a hearing, levy a civil penalty
for any prohibited unlicensed act as follows:
(1) The penalty for a prohibited unlicensed act that relates to the
requirements of the banking law or the regulations promulgated
thereunder shall be the same as the penalty provided in section
forty-four of the banking law for any violation of the banking law.
(2) The penalty for a prohibited unlicensed act that relates to the
requirements of this chapter or the regulations promulgated thereunder
shall be the same as the penalty provided for in section four hundred
eight of this article for violations of this chapter or the regulations
promulgated thereunder. However, the superintendent shall not impose or
collect any penalty for a prohibited unlicensed act pursuant to this
paragraph if the superintendent imposes or collects any penalty pursuant
to paragraph one of this subsection or paragraphs two or three of
subsection (a) of section four hundred eight of this article for the
same act or omission.
(3) If a prohibited unlicensed act results in consumer harm, the
penalty shall be not more than double the penalty amount applicable to
such violation set forth in paragraphs one and two of this subsection.
(c) Civil penalties received by the superintendent pursuant to this
section shall be applied in the same manner as civil penalties received
by the superintendent pursuant to section four hundred eight of this
chapter.
(d) In addition to any other penalty or sanction imposed upon a person
by law for a prohibited unlicensed act, after notice and a hearing, the
superintendent may issue an order directing such person to pay
restitution for such unlicensed act.