BILL NUMBER: S4934

SPONSOR: SANDERS
 
TITLE OF BILL:  An act to amend the banking law, in relation to estab-
lishing the New York state money transmission disclosure act

 
PURPOSE OR GENERAL IDEA OF BILL:

To require money transmitters to provide the customer with a written
disclosure of basic information regarding the transmission of their
funds prior to the time that the customer pays for the transaction.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill states that this act shall be known and may be
cited as the "New York State Money Transmission Disclosure Act".

Section two of the bill amends the banking law by adding a new section
651-c entitled "written disclosures". This bill would require money
transmitter licensees, agents or subagents to provide the customer with
a written disclosure prior to the time that the customer pays for the
              

transaction. This disclosure shall include: (1) the total amount of
currency in United States dollars presented by the customer; (2) the
rate of exchange applied to each particular transaction; (3) the amount
of commissions and fees in United States dollars charged by the licen-
see; (4) the total amount of currency to be delivered to the benefici-
ary.

 
JUSTIFICATION:

In October 2003, a public hearing was conducted on the topic of money
transmission. During this hearing, concerns were raised over the diffi-
culties constituents experience in obtaining basic information regarding
the transmission of funds to relatives abroad. A report released by the
New York City Department of Consumer Affairs on October 20, 2003, cited
incidents of failure to disclose the exchange rates the customer is
receiving or the fees they are charged prior to the transaction. This
act would require money transmitters to provide the customer with a
written disclosure prior to the time that the customer pays for the
transaction.

 
PRIOR LEGISLATIVE HISTORY:

A5176(2017-2018) Referred to Banks
1/8/18 A4084(2015-2016) Referred to Banks 1/6/16
A3425(2013-2014) Referred to Banks 1/8/14
A3611(2011-2012) Referred to Banks 1/6/12
A5459(2009-2010) Referred to Banks 1/6/10
A4917(2009-2010) Referred to Banks 1/9/10
A6273(2005-2006) Referred to Banks 2/28/06
A11261(2003-2004) Referred to Banks 6/1404

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law; effective immediately, the addition, the amendment and/ or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.