Bill Text: MN HF343 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Money transmitters regulated, and cooperation required in combating fraud.
Spectrum: Slight Partisan Bill (Democrat 7-3)
Status: (Introduced - Dead) 2012-03-05 - Second reading [HF343 Detail]
Download: Minnesota-2011-HF343-Engrossed.html
1.2relating to commerce; regulating money transmitters; requiring cooperation in
1.3combatting fraud;amending Minnesota Statutes 2010, section 53B.18; proposing
1.4coding for new law in Minnesota Statutes, chapter 53B.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 53B.18, is amended to read:
1.753B.18 PROHIBITED PRACTICES.
1.8No licensee shall:
1.9(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;
1.10(2) refuse to indemnify an instrument holder for any misappropriation of money
1.11caused by any of its authorized delegates in conducting activities on behalf of the licensee
1.12for whom it acts as an authorized delegate;or
1.13(3) fail to transmit all money received for wire transmission in accordance with the
1.14purchaser's instructions within five days; or
1.15(4) fail to comply with section 53B.27.
1.16 Sec. 2. [53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED
1.17IN COMBATTING FRAUD.
1.18 Subdivision 1. Fraud prevention measures required. Each money transmitter
1.19shall:
1.20(1) provide a clear, concise, and conspicuous consumer fraud warning on all
1.21transmittal forms used by consumers;
1.22(2) provide consumer fraud prevention training for agents involved with transmittals;
1.23(3) monitor agent activity relating to consumer transmittals; and
2.1(4) establish a toll-free number for consumers to call to report fraud or suspected
2.2fraud.
2.3 Subd. 2. Voluntary disqualification by customer. A money transmitter that
2.4originates money transfers in this state must allow an individual to voluntarily disqualify
2.5the individual from sending or receiving money transfers. The disqualification lasts for
2.6one year, unless the individual requests that it be in effect for a period longer than one
2.7year. The individual may terminate the disqualification at any time upon written notice
2.8to the money transmitter.
1.3combatting fraud;amending Minnesota Statutes 2010, section 53B.18; proposing
1.4coding for new law in Minnesota Statutes, chapter 53B.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 53B.18, is amended to read:
1.753B.18 PROHIBITED PRACTICES.
1.8No licensee shall:
1.9(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;
1.10(2) refuse to indemnify an instrument holder for any misappropriation of money
1.11caused by any of its authorized delegates in conducting activities on behalf of the licensee
1.12for whom it acts as an authorized delegate;
1.13(3) fail to transmit all money received for wire transmission in accordance with the
1.14purchaser's instructions within five days; or
1.15(4) fail to comply with section 53B.27.
1.16 Sec. 2. [53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED
1.17IN COMBATTING FRAUD.
1.18 Subdivision 1. Fraud prevention measures required. Each money transmitter
1.19shall:
1.20(1) provide a clear, concise, and conspicuous consumer fraud warning on all
1.21transmittal forms used by consumers;
1.22(2) provide consumer fraud prevention training for agents involved with transmittals;
1.23(3) monitor agent activity relating to consumer transmittals; and
2.1(4) establish a toll-free number for consumers to call to report fraud or suspected
2.2fraud.
2.3 Subd. 2. Voluntary disqualification by customer. A money transmitter that
2.4originates money transfers in this state must allow an individual to voluntarily disqualify
2.5the individual from sending or receiving money transfers. The disqualification lasts for
2.6one year, unless the individual requests that it be in effect for a period longer than one
2.7year. The individual may terminate the disqualification at any time upon written notice
2.8to the money transmitter.
