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

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S4210A-2011 Actions

• Apr 18, 2012: referred to banks
• Apr 18, 2012: DELIVERED TO ASSEMBLY
• Apr 18, 2012: PASSED SENATE
• Mar 27, 2012: AMENDED ON THIRD READING (T) 4210A
• Mar 13, 2012: ADVANCED TO THIRD READING
• Mar 12, 2012: 2ND REPORT CAL.
• Mar 7, 2012: 1ST REPORT CAL.316
• Jan 4, 2012: REFERRED TO BANKS
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 17, 2011: referred to banks
• Jun 17, 2011: DELIVERED TO ASSEMBLY
• Jun 17, 2011: PASSED SENATE
• May 24, 2011: ADVANCED TO THIRD READING
• May 23, 2011: 2ND REPORT CAL.
• May 18, 2011: 1ST REPORT CAL.782
• Mar 23, 2011: REFERRED TO BANKS

S4210A-2011 Calendars

Active List: Apr 18, 2012 , Floor Calendar: Mar 28, 2012 , Floor Calendar: Mar 29, 2012 , Floor Calendar: Mar 30, 2012 , Floor Calendar: Apr 17, 2012 , Floor Calendar: Apr 18, 2012

S4210A-2011 Votes

S4210A-2011 Memo

BILL NUMBER:S4210A

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.

FISCAL IMPLICATIONS:
None.

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

S4210A-2011 Text

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

                                   4210--A
      Cal. No. 316

                         2011-2012 Regular Sessions

                              I N  SENATE

                               March 23, 2011
                                 ___________

  Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
    printed to be committed to the Committee on Banks  --  recommitted  to
    the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
    reported favorably from said committee, ordered to  first  and  second
    report,  ordered  to  a  third reading, amended and ordered reprinted,
    retaining its place in the order of third reading

  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

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD10442-02-2

 S. 4210--A                          2

  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:

    (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.