NY State Senate Bill 2015-S2901

Senate Bill S2901

2015-2016 Legislative Session

Relates to violations by unlicensed transmitters of money

download bill text pdf

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to banks
Jun 25, 2015	committed to rules
Jun 09, 2015	advanced to third reading
Jun 08, 2015	2nd report cal.
Jun 03, 2015	1st report cal.1327
Jan 30, 2015	referred to banks

Votes

- Jun 3, 2015 - Banks Committee Vote
  S2901
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: Jun 3, 2015
      
      aye (19)
      
      Amedore
      
      Avella
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Farley
      
      Golden
      
      Hamilton
      
      Kennedy
      
      Latimer
      
      Marcellino
      
      Marchione
      
      Martins
      
      Murphy
      
      O'Mara
      
      Parker
      
      Sanders Jr.
      
      Savino

2015-S2901 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §650, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4210
2013-2014: S2931

2015-S2901 (ACTIVE) - Summary

Provides increased penalties for violations by unlicensed transmitters of money.

2015-S2901 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2901

TITLE OF BILL:

An act to amend the banking law, in relation to violations by
unlicensed transmitters of money

PURPOSE:

To raise the criminal penalties for unlicensed money transmitter
activities in those situations where the person knows that the funds
involved are the proceeds of criminal conduct

SUMMARY OF PROVISIONS:

This bill amends Section 650(2) of the Banking Law to separate the
current Class E felony penalties for the unlicensed transmission of
money into two categories: 1) the existing violation regarding the
unlicensed transmission of funds in excess of a specified threshold
would continue to be a Class E felony; and 2) the existing violation
regarding the unlicensed transmission of funds where the transmitter
knows that such funds are the proceeds of any criminal conduct would
be raised from a Class E felony to a Class D felony.

JUSTIFICATION:

This bill would increase the criminal penalties for the unlicensed
transmission of money in certain situations. The existing penalties
were set in 1990. Under that law, it is a Class A misdemeanor to
operate as an unlicensed money transmitter, with the penalty rising to
a Class E felony if the transmitter either transmits more than a
specified threshold amount or transmits money knowing that it is the
proceeds of any criminal conduct.

It is important to have appropriate and significant penalties in order
to help deter crime and to appropriately punish those who commit such
crimes. There continues to be much attention at both the national and
state levels to possible abuses involving money transmitters. In
addition to the potential for consumer fraud, illegal money
transmitters are often involved in laundering the proceeds of criminal
activity. Some federal investigations have even focused on the use of
money transmitters to launder funds in support of terrorist
activities.

The regulation of the money transmission industry is important for
protecting consumers and preventing criminal activities. Unlicensed
transmitters seek to evade the regulatory system and are likely to be
involved in such illegal activities. It is appropriate to target with
higher penalties those illegal operators who are helping to facilitate
criminal activities through the laundering of criminal proceeds.

LEGISLATIVE HISTORY:

Bill S.2931 of 2013-14 -- Reported to Codes
Bill S.4210 of 2011-12 - Passed Senate

FISCAL IMPLICATIONS:


None

EFFECTIVE DATE:

This act shall take effect on the sixtieth day after it shall have
become law

2015-S2901 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2901

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 30, 2015
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to violations by unlicensed
  transmitters of money

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Subdivision  2  of  section  650 of the banking law, as
amended by chapter 543 of the laws  of  1990,  is  amended  to  read  as
follows:
  2.  a.  Any person who either (1) engages in the business of receiving
money for transmission or transmitting the same or (2) sells  or  issues
New  York  instruments  or New York traveler's checks as those terms are
defined by section six hundred fifty-three of this  chapter,  without  a
license  therefor  obtained  from the superintendent as provided in this
article, shall be guilty of a [Class] CLASS A misdemeanor.
  b. Any person who violates paragraph a of this subdivision and in  the
course of that violation:
  (1)  knowingly receives or agrees to receive for transmission from one
or more individuals a total of ten thousand dollars or more in a  single
transaction,  a  total  of twenty-five thousand dollars or more during a
period of thirty days or less, or a total of two hundred fifty  thousand
dollars or more during a period of one year or less; or
  (2) knowingly sells or issues New York instruments or New York travel-
er's  checks to one or more individuals totaling ten thousand dollars or
more in a single transaction, a total of twenty-five thousand dollars or
more during a period of thirty days or less, or a total of  two  hundred
fifty thousand dollars or more during a period of one year or less SHALL
BE GUILTY OF A CLASS E FELONY.[; or
  (3)]  C. ANY PERSON WHO VIOLATES THE PROVISIONS OF PARAGRAPH A OF THIS
SUBDIVISION AND IN THE COURSE OF SUCH VIOLATION:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07710-02-5

S. 2901                             2

  (1) knowingly engages in the business of receiving money for transmit-
ting or transmitting the same, knowing such money to be the proceeds  of
any criminal conduct; or
  [(4)]  (2)  knowingly sells or issues New York instruments or New York
traveler's checks as those terms are  defined  by  section  six  hundred
fifty-three  of  this  chapter, knowing such instruments or checks to be
purchased with the proceeds of or derived  from  any  criminal  conduct;
shall be guilty of a class [E] D felony.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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