Relates to increasing penalties for violations by unlicensed transmitters of money.

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S2931-2013 Actions

• Feb 12, 2013: REPORTED AND COMMITTED TO CODES
• Jan 25, 2013: REFERRED TO BANKS

S2931-2013 Meetings

Banks: Feb 12, 2013

S2931-2013 Votes

S2931-2013 Memo

BILL NUMBER:S2931

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 transmit-
ter 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 tran-
smitter 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 addi-
tion 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 transmit-
ters 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.

FISCAL IMPLICATIONS: None

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

S2931-2013 Text

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

                                    2931

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 25, 2013
                                 ___________

  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.
                                                             LBD08150-01-3

 S. 2931                             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.