Verification for foreign remittance transfers required, and civil and criminal penalties provided.

A bill for an act

relating to commerce; requiring verification for foreign remittance transfers;

providing civil and criminal penalties; amending Minnesota Statutes 2024, section

53B.50; proposing coding for new law in Minnesota Statutes, chapter 53B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 53B.50, is amended to read:

53B.50 RECORDS.

(a) A licensee must maintain the following records, for purposes of determining the

licensee's compliance with this chapter, for at least three years:

(1) a record of each outstanding money transmission obligation sold;

(2) a general ledger posted at least monthly containing all asset, liability, capital, income,

and expense accounts;

(3) bank statements and bank reconciliation records;

(4) records of outstanding money transmission obligations;

(5) records of each outstanding money transmission obligation paid within the three-year

period;

(6) a list of the last known names and addresses of all of the licensee's authorized

delegates;
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and
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(7) records of the documentation used to verify that the sender of a foreign remittance

transfer is lawfully present in the United States, as defined in section 53B.521;

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(8) records of penalties paid under section 53B.521, including the date and amount of

each foreign remittance transfer and the name, date of birth, and address of each sender;

and

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(7)
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(9)
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any other records the commissioner reasonably requires by administrative rule.

(b) The items specified in paragraph (a) may be maintained in any form of record.

(c) The records specified in paragraph (a) may be maintained outside of Minnesota if

the records are made accessible to the commissioner upon seven business-days' notice that

is sent in a record.

(d) All records maintained by the licensee as required under paragraphs (a) to (c) are

open to inspection by the commissioner under section
53B.33
, paragraph (a).

Sec. 2.

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[53B.521] FOREIGN REMITTANCE TRANSFERS.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Foreign remittance transfer" means a remittance transfer, as defined in United States

Code, title 15, section 1693o-1, to a recipient who is located in a country other than the

United States.

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(c) "Lawfully present" has the meaning given in Code of Federal Regulations, title 45,

section 155.20.

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Subd. 2.

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Verification required.

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(a) A licensee is prohibited from initiating a foreign

remittance transfer unless the licensee has verified that the sender is lawfully present in the

United States.

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(b) A sender is required to provide one form of documentation to the licensee to verify

the sender is lawfully present in the United States. A licensee must only accept:

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(1) a REAL ID;

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(2) a driver's license or identification card that:

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(i) complies with all REAL ID Act requirements;

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(ii) is not designated as temporary or limited term; and

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(iii) is current or has been expired for five years or less;

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(3) a valid, unexpired United States passport, including a passport booklet or passport

card, issued by the United States Department of State;

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(4) a certified copy of a birth certificate, issued by a government bureau of vital statistics

or equivalent agency in the applicant's state of birth, which must bear the raised or authorized

seal of the issuing government entity;

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(5) a consular report of birth abroad, certification of report of birth, or certification of

birth abroad issued by the United States Department of State, Form FS-240, Form DS-1350,

or Form FS-545, as applicable;

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(6) a valid, unexpired permanent resident card issued by the United States Department

of Homeland Security or the former Immigration and Naturalization Service of the United

States Department of Justice, Form I-551. If the Form I-551 validity period has been

automatically extended by the United States Department of Homeland Security, the

permanent resident card is deemed unexpired regardless of the expiration date listed;

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(7) a foreign passport with an unexpired temporary Form I-551 stamp or a temporary

Form I-551 printed notation on a machine-readable immigrant visa with a United States

Department of Homeland Security admission stamp within the validity period;

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(8) a United States Department of Homeland Security Form I-94 or Form I-94A with a

photograph and an unexpired temporary Form I-551 stamp;

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(9) a United States Department of State Form DS-232 with a United States Department

of Homeland Security admission stamp and validity period;

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(10) a certificate of naturalization issued by the United States Department of Homeland

Security, Form N-550 or Form N-570;

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(11) a certificate of citizenship issued by the United States Department of Homeland

Security, Form N-560 or Form N-561;

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(12) an unexpired employment authorization document issued by the United States

Department of Homeland Security, Form I-766 or Form I-688B. If the Form I-766 validity

period has been automatically extended by the United States Department of Homeland

Security, the employment authorization document is deemed unexpired regardless of the

expiration date listed;

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(13) a valid, unexpired passport issued by a foreign country and a valid, unexpired United

States visa accompanied by documentation of the applicant's most recent lawful admittance

into the United States; or

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(14) a document designated by the United States Department of Homeland Security

under Code of Federal Regulations, title 6, part 37.11(c)(1)(x).

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(c) A document provided under paragraph (b) must be legible and unaltered.

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(d) The licensee must provide confirmation of verification on forms prescribed by the

commissioner. The licensee must submit all required forms to the commissioner no later

than the 15th day of the month following the close of each calendar quarter.

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Subd. 3.

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Right to file a complaint.

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(a) A person who has good faith belief that a licensee

is failing to comply with this section may file a complaint with the commissioner.

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(b) A person who knowingly files a false or frivolous complaint under this subdivision,

including any complaint that violates federal law, commits a misdemeanor.

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(c) Upon receiving a valid complaint substantiated by evidence of a violation of this

section, the commissioner must notify the licensee of the complaint and direct the licensee

to pay a penalty pursuant to this section.

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Subd. 4.

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Audits.

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(a) The commissioner must conduct random quarterly audits of licensees

to ensure compliance with this section.

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(b) A licensee is required to produce records used to verify that each sender of a foreign

remittance transfer is lawfully present in the United States.

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(c) The division must not audit a licensee more than once every two years unless an

audit within the last six months found the licensee did not comply with this section.

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Subd. 5.

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Penalties.

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(a) A licensee must pay a penalty equal to 25 percent of the United

States dollar amount transferred, excluding fees or charges imposed by the licensee for a

foreign remittance transfer initiated in violation of this section.

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(b) The licensee must remit penalties owed under this section to the commissioner

quarterly. The licensees must include with the remittance the forms required by the

commissioner.

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