Bill Text: MN SF247 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Money transmitters fraud prevention measures expansion; no transmit list creation
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-11 - HF substituted on General Orders HF194 [SF247 Detail]
Download: Minnesota-2013-SF247-Engrossed.html
1.2relating to commerce; preventing fraud; regulating money transmissions;
1.3establishing a no transmit list; requiring certain notifications and verifications;
1.4amending Minnesota Statutes 2012, section 53B.27, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 53B.27, is amended by adding a
1.7subdivision to read:
1.8 Subd. 3. No transmit list. (a) The commissioner shall create and maintain
1.9an electronic list of individuals for whom money transmitters may not make money
1.10transmissions. The commissioner may contract with a third-party vendor to create and
1.11maintain the list. The electronic list must allow for money transmitters to match names
1.12on the "No Transmit List" with the names of individuals seeking to utilize the money
1.13transmitter's services to make money transmissions.
1.14(b) The "No Transmit List" shall be populated in the following ways:
1.15(1) an individual may request that the commissioner put his or her name on the
1.16"No Transmit List;"
1.17(2) persons with the legal authority to act on behalf of an individual may request that
1.18the commissioner put the individual's name on the "No Transmit List;"
1.19(3) money transmitters shall request that the commissioner put the names of
1.20individuals on the "No Transmit List" that the money transmitter, their employees, their
1.21authorized delegates, or their authorized delegates' employees have detected are victims of
1.22a scheme to defraud and the names of individuals they have detected are participants in a
1.23scheme to defraud individuals residing in Minnesota; and
2.1(4) money transmitters shall request that the commissioner put the names of
2.2individuals on the "No Transmit List" who have made a request directly to the money
2.3transmitter to be prohibited from making or receiving money transmissions.
2.4(c) An individual on the "No Transmit List" shall remain on the list for a minimum
2.5of one year. After the expiration of one year, the individual may at any time request
2.6that his or her name be removed from the "No Transmit List," otherwise the name will
2.7remain on the list. An individual whose name was put on the "No Transmit List" by a
2.8person authorized to act on an individual's behalf shall remain on the list for a minimum of
2.9one year. After the expiration of one year, the person authorized to act on the individual's
2.10behalf may at any time request that the commissioner remove the individual's name from
2.11the "No Transmit List," otherwise the name will remain on the list.
2.12(d) An individual who requests that his or her name be put on the "No Transmit List"
2.13may indicate at the time of his or her request that his or her name shall not be removed
2.14from the "No Transmit List" unless both the individual and at least one of two designated
2.15individuals requests the individual's name be removed from the list.
2.16(e) The commissioner shall create request forms and establish procedures for
2.17submission of requests under this subdivision. The commissioner's forms and procedures
2.18shall include necessary requirements for verifying the identity and authority of individuals
2.19submitting requests. All requests must be submitted to the commissioner on the forms
2.20created by the commissioner and in accordance with the procedures established by the
2.21commissioner.
2.22(f) A name of an individual on the "No Transmit List" may be provided to the
2.23individual or a person authorized to act on the individual's behalf and shall be provided to
2.24a money transmitter through a matching process for the purpose of determining whether it
2.25may initiate a money transmission.
2.26 Sec. 2. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
2.27to read:
2.28 Subd. 4. Suspicious activity report. Each time a money transmitter requests that
2.29the commissioner put the name of an individual on the "No Transmit List" pursuant
2.30to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a
2.31suspicious activity report pursuant to the federal Bank Secrecy Act.
2.32 Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
2.33to read:
3.1 Subd. 5. High incidence of schemes to defraud. The commissioner, after
3.2consulting with licensed money transmitters, may establish a maximum transaction amount
3.3for money transmissions to countries associated with high incidence of schemes to defraud.
3.4 Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.5to read:
3.6 Subd. 6. Notification of attempted receipt of money transfer at unexpected
3.7location. Upon request of a sender of a money transmission, a money transmitter shall
3.8promptly notify the sender if the money transmitter receives notice that a person has
3.9attempted to receive the transfer in a state or country other than the state or country
3.10specified by the sender. The money transmitter shall not authorize receipt of the transfer at
3.11any location not specified in writing by the sender at the time of the transmission unless
3.12the money transmitter has received authorization from the sender.
3.13 Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.14to read:
3.15 Subd. 7. Verification of name and location of receipt of money transfer.
3.16Upon request of a sender or the authorized delegate of a money transmission, a money
3.17transmitter shall provide the sender verification of the location where the transfer was
3.18received and the name of the person receiving the transfer.
3.19 Sec. 6. EFFECTIVE DATE.
3.20This act is effective January 1, 2014, and applies to money transfers initiated on or
3.21after that date.
1.3establishing a no transmit list; requiring certain notifications and verifications;
1.4amending Minnesota Statutes 2012, section 53B.27, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 53B.27, is amended by adding a
1.7subdivision to read:
1.8 Subd. 3. No transmit list. (a) The commissioner shall create and maintain
1.9an electronic list of individuals for whom money transmitters may not make money
1.10transmissions. The commissioner may contract with a third-party vendor to create and
1.11maintain the list. The electronic list must allow for money transmitters to match names
1.12on the "No Transmit List" with the names of individuals seeking to utilize the money
1.13transmitter's services to make money transmissions.
1.14(b) The "No Transmit List" shall be populated in the following ways:
1.15(1) an individual may request that the commissioner put his or her name on the
1.16"No Transmit List;"
1.17(2) persons with the legal authority to act on behalf of an individual may request that
1.18the commissioner put the individual's name on the "No Transmit List;"
1.19(3) money transmitters shall request that the commissioner put the names of
1.20individuals on the "No Transmit List" that the money transmitter, their employees, their
1.21authorized delegates, or their authorized delegates' employees have detected are victims of
1.22a scheme to defraud and the names of individuals they have detected are participants in a
1.23scheme to defraud individuals residing in Minnesota; and
2.1(4) money transmitters shall request that the commissioner put the names of
2.2individuals on the "No Transmit List" who have made a request directly to the money
2.3transmitter to be prohibited from making or receiving money transmissions.
2.4(c) An individual on the "No Transmit List" shall remain on the list for a minimum
2.5of one year. After the expiration of one year, the individual may at any time request
2.6that his or her name be removed from the "No Transmit List," otherwise the name will
2.7remain on the list. An individual whose name was put on the "No Transmit List" by a
2.8person authorized to act on an individual's behalf shall remain on the list for a minimum of
2.9one year. After the expiration of one year, the person authorized to act on the individual's
2.10behalf may at any time request that the commissioner remove the individual's name from
2.11the "No Transmit List," otherwise the name will remain on the list.
2.12(d) An individual who requests that his or her name be put on the "No Transmit List"
2.13may indicate at the time of his or her request that his or her name shall not be removed
2.14from the "No Transmit List" unless both the individual and at least one of two designated
2.15individuals requests the individual's name be removed from the list.
2.16(e) The commissioner shall create request forms and establish procedures for
2.17submission of requests under this subdivision. The commissioner's forms and procedures
2.18shall include necessary requirements for verifying the identity and authority of individuals
2.19submitting requests. All requests must be submitted to the commissioner on the forms
2.20created by the commissioner and in accordance with the procedures established by the
2.21commissioner.
2.22(f) A name of an individual on the "No Transmit List" may be provided to the
2.23individual or a person authorized to act on the individual's behalf and shall be provided to
2.24a money transmitter through a matching process for the purpose of determining whether it
2.25may initiate a money transmission.
2.26 Sec. 2. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
2.27to read:
2.28 Subd. 4. Suspicious activity report. Each time a money transmitter requests that
2.29the commissioner put the name of an individual on the "No Transmit List" pursuant
2.30to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a
2.31suspicious activity report pursuant to the federal Bank Secrecy Act.
2.32 Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
2.33to read:
3.1 Subd. 5. High incidence of schemes to defraud. The commissioner, after
3.2consulting with licensed money transmitters, may establish a maximum transaction amount
3.3for money transmissions to countries associated with high incidence of schemes to defraud.
3.4 Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.5to read:
3.6 Subd. 6. Notification of attempted receipt of money transfer at unexpected
3.7location. Upon request of a sender of a money transmission, a money transmitter shall
3.8promptly notify the sender if the money transmitter receives notice that a person has
3.9attempted to receive the transfer in a state or country other than the state or country
3.10specified by the sender. The money transmitter shall not authorize receipt of the transfer at
3.11any location not specified in writing by the sender at the time of the transmission unless
3.12the money transmitter has received authorization from the sender.
3.13 Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.14to read:
3.15 Subd. 7. Verification of name and location of receipt of money transfer.
3.16Upon request of a sender or the authorized delegate of a money transmission, a money
3.17transmitter shall provide the sender verification of the location where the transfer was
3.18received and the name of the person receiving the transfer.
3.19 Sec. 6. EFFECTIVE DATE.
3.20This act is effective January 1, 2014, and applies to money transfers initiated on or
3.21after that date.
