A 390: Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.
The bill requires a clear warning to consumers before initiating a money transfer transaction, including a consumer fraud warning on all funds transfer forms used by consumers to send money to an individual. The warning must be provided prior to initiating the transaction and annually for agents involved with funds transfers. The bill also establishes a toll-free number for consumers to report fraud or suspected fraud and provides information on how to stop a transfer. The warning does not apply to electronic funds transfers where funds are not transferred directly to another person and are not available for immediate use. A violation of the provisions of this section is punishable by a civil penalty of up to $250 for the first violation and $500 for each subsequent violation.
| May. 06, 2026 | print number 390a |
| May. 06, 2026 | amend and recommit to banks |
| Jan. 07, 2026 | referred to banks |
| Jan. 08, 2025 | referred to banks |
STATE OF NEW YORK ________________________________________________________________________ 390 2025-2026 Regular Sessions IN ASSEMBLY (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