Bill Text: MN SF247 | 2013-2014 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
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, sections 13.712, by adding a subdivision;
1.553B.27, by adding subdivisions.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 13.712, is amended by adding a
1.8subdivision to read:
1.9 Subd. 3a. No transmit list. Data maintained as part of creation and maintenance
1.10of the list of individuals for whom money transmitters may not make transmissions is
1.11governed by section 53B.27, subdivision 3.
1.12 Sec. 2. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
1.13to read:
1.14 Subd. 3. No transmit list. (a) The commissioner shall create and maintain
1.15an electronic list of individuals for whom money transmitters may not make money
1.16transmissions. The commissioner may contract with a third-party vendor to create and
1.17maintain the list. The electronic list must allow for money transmitters to match names
1.18on the "No Transmit List" with the names of individuals seeking to utilize the money
1.19transmitter's services to make money transmissions.
1.20(b) The "No Transmit List" shall be populated in the following ways:
1.21(1) an individual may request that the commissioner put the individual's name on
1.22the "No Transmit List;"
1.23(2) persons with the legal authority to act on behalf of an individual may request that
1.24the commissioner put the individual's name on the "No Transmit List;"
2.1(3) money transmitters shall request that the commissioner put the names of
2.2individuals on the "No Transmit List" that the money transmitter, their employees, their
2.3authorized delegates, or their authorized delegates' employees have detected are victims
2.4of a scheme to defraud and the names of individuals they have detected are participants
2.5in a scheme to defraud individuals residing in Minnesota;
2.6(4) state and local law enforcement agencies and departments may request that the
2.7commissioner put the names of individuals residing in Minnesota who have been victims
2.8of a scheme to defraud on the "No Transmit List"; and
2.9(5) money transmitters shall request that the commissioner put the names of
2.10individuals on the "No Transmit List" who have made a request directly to the money
2.11transmitter to be prohibited from making or receiving money transmissions.
2.12(c) An individual on the "No Transmit List" shall remain on the list for a minimum
2.13of one year. After the expiration of one year, the individual may at any time request
2.14that his or her name be removed from the "No Transmit List," otherwise the name will
2.15remain on the list. An individual whose name was put on the "No Transmit List" by a
2.16person authorized to act on an individual's behalf shall remain on the list for a minimum of
2.17one year. After the expiration of one year, the person authorized to act on the individual's
2.18behalf may at any time request that the commissioner remove the individual's name from
2.19the "No Transmit List," otherwise the name will remain on the list.
2.20(d) An individual who requests that the individual's name be put on the "No Transmit
2.21List" may indicate at the time of the request that the name shall not be removed from
2.22the "No Transmit List" unless both the individual and at least one of two designated
2.23individuals requests the individual's name be removed from the list.
2.24(e) The commissioner shall create request forms and establish procedures for
2.25submission of requests under this subdivision. The commissioner's forms and procedures
2.26shall include necessary requirements for verifying the identity and authority of individuals
2.27submitting requests. All requests must be submitted to the commissioner on the forms
2.28created by the commissioner and in accordance with the procedures established by the
2.29commissioner.
2.30(f) Except as otherwise provided in this paragraph, data on individuals in the "No
2.31Transmit List" and in requests to have names put on or removed from the list are private
2.32data on individuals as defined in section 13.02, subdivision 12. The name of an individual
2.33on the "No Transmit List" may be provided to the individual or a person authorized to act
2.34on the individual's behalf and shall be provided to a money transmitter through a matching
2.35process for the purpose of determining whether it may initiate a money transmission. Data
2.36classified under this paragraph may be disclosed to requesting law enforcement agencies
3.1for law enforcement purposes or to other government agencies for purposes related to the
3.2regulation of money transmissions.
3.3 Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.4to read:
3.5 Subd. 4. Suspicious activity report. Each time a money transmitter requests that
3.6the commissioner put the name of an individual on the "No Transmit List" pursuant
3.7to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a
3.8suspicious activity report pursuant to the federal Bank Secrecy Act.
3.9 Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.10to read:
3.11 Subd. 5. High incidence of schemes to defraud. The commissioner, after
3.12consulting with licensed money transmitters, may establish a maximum transaction amount
3.13for money transmissions to countries associated with high incidence of schemes to defraud.
3.14 Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.15to read:
3.16 Subd. 6. Notification of attempted receipt of money transfer at unexpected
3.17location. Upon request of a sender of a money transmission, a money transmitter shall
3.18promptly notify the sender if the money transmitter receives notice that a person has
3.19attempted to receive the transfer in a state or country other than the state or country
3.20specified by the sender. The money transmitter shall not authorize receipt of the transfer at
3.21any location not specified in writing by the sender at the time of the transmission unless
3.22the money transmitter has received authorization from the sender.
3.23 Sec. 6. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.24to read:
3.25 Subd. 7. Verification of name and location of receipt of money transfer.
3.26Upon request of a sender or the authorized delegate of a money transmission, a money
3.27transmitter shall provide the sender verification of the location where the transfer was
3.28received and the name of the person receiving the transfer.
3.29 Sec. 7. EFFECTIVE DATE.
3.30This act is effective January 1, 2014, and applies to money transfers initiated on or
3.31after that date.
1.3establishing a no transmit list; requiring certain notifications and verifications;
1.4amending Minnesota Statutes 2012, sections 13.712, by adding a subdivision;
1.553B.27, by adding subdivisions.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 13.712, is amended by adding a
1.8subdivision to read:
1.9 Subd. 3a. No transmit list. Data maintained as part of creation and maintenance
1.10of the list of individuals for whom money transmitters may not make transmissions is
1.11governed by section 53B.27, subdivision 3.
1.12 Sec. 2. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
1.13to read:
1.14 Subd. 3. No transmit list. (a) The commissioner shall create and maintain
1.15an electronic list of individuals for whom money transmitters may not make money
1.16transmissions. The commissioner may contract with a third-party vendor to create and
1.17maintain the list. The electronic list must allow for money transmitters to match names
1.18on the "No Transmit List" with the names of individuals seeking to utilize the money
1.19transmitter's services to make money transmissions.
1.20(b) The "No Transmit List" shall be populated in the following ways:
1.21(1) an individual may request that the commissioner put the individual's name on
1.22the "No Transmit List;"
1.23(2) persons with the legal authority to act on behalf of an individual may request that
1.24the commissioner put the individual's name on the "No Transmit List;"
2.1(3) money transmitters shall request that the commissioner put the names of
2.2individuals on the "No Transmit List" that the money transmitter, their employees, their
2.3authorized delegates, or their authorized delegates' employees have detected are victims
2.4of a scheme to defraud and the names of individuals they have detected are participants
2.5in a scheme to defraud individuals residing in Minnesota;
2.6(4) state and local law enforcement agencies and departments may request that the
2.7commissioner put the names of individuals residing in Minnesota who have been victims
2.8of a scheme to defraud on the "No Transmit List"; and
2.9(5) money transmitters shall request that the commissioner put the names of
2.10individuals on the "No Transmit List" who have made a request directly to the money
2.11transmitter to be prohibited from making or receiving money transmissions.
2.12(c) An individual on the "No Transmit List" shall remain on the list for a minimum
2.13of one year. After the expiration of one year, the individual may at any time request
2.14that his or her name be removed from the "No Transmit List," otherwise the name will
2.15remain on the list. An individual whose name was put on the "No Transmit List" by a
2.16person authorized to act on an individual's behalf shall remain on the list for a minimum of
2.17one year. After the expiration of one year, the person authorized to act on the individual's
2.18behalf may at any time request that the commissioner remove the individual's name from
2.19the "No Transmit List," otherwise the name will remain on the list.
2.20(d) An individual who requests that the individual's name be put on the "No Transmit
2.21List" may indicate at the time of the request that the name shall not be removed from
2.22the "No Transmit List" unless both the individual and at least one of two designated
2.23individuals requests the individual's name be removed from the list.
2.24(e) The commissioner shall create request forms and establish procedures for
2.25submission of requests under this subdivision. The commissioner's forms and procedures
2.26shall include necessary requirements for verifying the identity and authority of individuals
2.27submitting requests. All requests must be submitted to the commissioner on the forms
2.28created by the commissioner and in accordance with the procedures established by the
2.29commissioner.
2.30(f) Except as otherwise provided in this paragraph, data on individuals in the "No
2.31Transmit List" and in requests to have names put on or removed from the list are private
2.32data on individuals as defined in section 13.02, subdivision 12. The name of an individual
2.33on the "No Transmit List" may be provided to the individual or a person authorized to act
2.34on the individual's behalf and shall be provided to a money transmitter through a matching
2.35process for the purpose of determining whether it may initiate a money transmission. Data
2.36classified under this paragraph may be disclosed to requesting law enforcement agencies
3.1for law enforcement purposes or to other government agencies for purposes related to the
3.2regulation of money transmissions.
3.3 Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.4to read:
3.5 Subd. 4. Suspicious activity report. Each time a money transmitter requests that
3.6the commissioner put the name of an individual on the "No Transmit List" pursuant
3.7to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a
3.8suspicious activity report pursuant to the federal Bank Secrecy Act.
3.9 Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.10to read:
3.11 Subd. 5. High incidence of schemes to defraud. The commissioner, after
3.12consulting with licensed money transmitters, may establish a maximum transaction amount
3.13for money transmissions to countries associated with high incidence of schemes to defraud.
3.14 Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.15to read:
3.16 Subd. 6. Notification of attempted receipt of money transfer at unexpected
3.17location. Upon request of a sender of a money transmission, a money transmitter shall
3.18promptly notify the sender if the money transmitter receives notice that a person has
3.19attempted to receive the transfer in a state or country other than the state or country
3.20specified by the sender. The money transmitter shall not authorize receipt of the transfer at
3.21any location not specified in writing by the sender at the time of the transmission unless
3.22the money transmitter has received authorization from the sender.
3.23 Sec. 6. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.24to read:
3.25 Subd. 7. Verification of name and location of receipt of money transfer.
3.26Upon request of a sender or the authorized delegate of a money transmission, a money
3.27transmitter shall provide the sender verification of the location where the transfer was
3.28received and the name of the person receiving the transfer.
3.29 Sec. 7. EFFECTIVE DATE.
3.30This act is effective January 1, 2014, and applies to money transfers initiated on or
3.31after that date.
