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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:
1 Section 1. The banking law is amended by adding a new section 652-c to
2 read as follows:
3 § 652-C. REQUIRED WARNING. 1. A PERSON ENGAGED IN THE BUSINESS OF
4 RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
5 TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN-PERSON, BY
6 TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER PERSON, BUSI-
7 NESS OR ENTITY, SHALL:
8 (A) PROVIDE A CLEAR, CONCISE, AND CONSPICUOUS CONSUMER FRAUD WARNING
9 PRIOR TO INITIATING THE MONEY TRANSFER TRANSACTION AND ON ALL FUNDS
10 TRANSFER FORMS USED BY CONSUMERS TO SEND MONEY TO AN INDIVIDUAL;
11 (B) PROVIDE ANNUAL CONSUMER FRAUD PREVENTION TRAINING FOR AGENTS
12 INVOLVED WITH FUNDS TRANSFERS;
13 (C) MONITOR AGENT ACTIVITY RELATING TO CONSUMER FUNDS TRANSFERS; AND
14 (D) ESTABLISH A TOLL-FREE NUMBER FOR CONSUMERS TO CALL TO REPORT FRAUD
15 OR SUSPECTED FRAUD AND PROVIDE INFORMATION ON HOW TO STOP A TRANSFER.
16 2. THE WARNING REQUIRED BY THIS SECTION SHALL NOT APPLY TO AN ELEC-
17 TRONIC FUNDS TRANSFER IN WHICH FUNDS ARE NOT TRANSFERRED DIRECTLY TO
18 ANOTHER PERSON AND ARE NOT AVAILABLE FOR IMMEDIATE USE.
19 3. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE
20 BY A CIVIL PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
21 FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
22 § 2. This act shall take effect on the one hundred eightieth day after
23 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