HF 194

1st Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 05/02/2013 04:40 p.m.

1.1A bill for an act 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     new text begin Subd. 3a. new text end new text begin No transmit list. new text end new text begin Data maintained as part of creation and maintenance new text end 1.10 new text begin of the list of individuals for whom money transmitters may not make transmissions is new text end 1.11 new text begin governed by section 53B.27, subdivision 3. new text end 1.12    Sec. 2. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision 1.13to read: 1.14     new text begin Subd. 3. new text end new text begin No transmit list. new text end new text begin (a) The commissioner shall create and maintain new text end 1.15 new text begin an electronic list of individuals for whom money transmitters may not make money new text end 1.16 new text begin transmissions. The commissioner may contract with a third-party vendor to create and new text end 1.17 new text begin maintain the list. The electronic list must include sufficient identifying information new text end 1.18 new text begin about individuals on the list to allow for money transmitters to match names on the "No new text end 1.19 new text begin Transmit List" with the names of individuals seeking to utilize the money transmitter's new text end 1.20 new text begin services to make money transmissions. new text end 1.21 new text begin (b) The "No Transmit List" shall be populated in the following ways: new text end 1.22 new text begin (1) an individual may request that the commissioner put the individual's name on new text end 1.23 new text begin the "No Transmit List;" new text end 2.1 new text begin (2) persons with the legal authority to act on behalf of an individual may request that new text end 2.2 new text begin the commissioner put the individual's name on the "No Transmit List;" new text end 2.3 new text begin (3) money transmitters shall request that the commissioner put the names of new text end 2.4 new text begin individuals on the "No Transmit List" that the money transmitter, their employees, their new text end 2.5 new text begin authorized delegates, or their authorized delegates' employees have detected are victims new text end 2.6 new text begin of a scheme to defraud and the names of individuals they have detected are participants new text end 2.7 new text begin in a scheme to defraud individuals residing in Minnesota; new text end 2.8 new text begin (4) state and local law enforcement agencies and departments may request that the new text end 2.9 new text begin commissioner put the names of individuals residing in Minnesota who have been victims new text end 2.10 new text begin of a scheme to defraud on the "No Transmit List"; and new text end 2.11 new text begin (5) money transmitters shall request that the commissioner put the names of new text end 2.12 new text begin individuals on the "No Transmit List" who have made a request directly to the money new text end 2.13 new text begin transmitter to be prohibited from making or receiving money transmissions. new text end 2.14 new text begin (c) An individual on the "No Transmit List" shall remain on the list for a minimum new text end 2.15 new text begin of one year. After the expiration of one year, the individual may at any time request new text end 2.16 new text begin that his or her name be removed from the "No Transmit List," otherwise the name will new text end 2.17 new text begin remain on the list. An individual whose name was put on the "No Transmit List" by a new text end 2.18 new text begin person authorized to act on an individual's behalf shall remain on the list for a minimum of new text end 2.19 new text begin one year. After the expiration of one year, the person authorized to act on the individual's new text end 2.20 new text begin behalf may at any time request that the commissioner remove the individual's name from new text end 2.21 new text begin the "No Transmit List," otherwise the name will remain on the list. new text end 2.22 new text begin (d) An individual who requests that the individual's name be put on the "No Transmit new text end 2.23 new text begin List" may indicate at the time of the request that the name shall not be removed from new text end 2.24 new text begin the "No Transmit List" unless both the individual and at least one of two designated new text end 2.25 new text begin individuals requests the individual's name be removed from the list. new text end 2.26 new text begin (e) The commissioner shall create request forms and establish procedures for new text end 2.27 new text begin submission of requests under this subdivision. The commissioner's forms and procedures new text end 2.28 new text begin shall include necessary requirements for verifying the identity and authority of individuals new text end 2.29 new text begin submitting requests. All requests must be submitted to the commissioner on the forms new text end 2.30 new text begin created by the commissioner and in accordance with the procedures established by the new text end 2.31 new text begin commissioner. new text end 2.32 new text begin (f) Except as otherwise provided in this paragraph, data on individuals in the "No new text end 2.33 new text begin Transmit List" and in requests to have names put on or removed from the list are private new text end 2.34 new text begin data on individuals as defined in section 13.02, subdivision 12. The name of an individual new text end 2.35 new text begin on the "No Transmit List" may be provided to the individual or a person authorized to act new text end 2.36 new text begin on the individual's behalf and shall be provided to a money transmitter through a matching new text end 3.1 new text begin process for the purpose of determining whether it may initiate a money transmission. Data new text end 3.2 new text begin classified under this paragraph may be disclosed to requesting law enforcement agencies new text end 3.3 new text begin for law enforcement purposes or to other government agencies for purposes related to the new text end 3.4 new text begin regulation of money transmissions. new text end 3.5    Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision 3.6to read: 3.7     new text begin Subd. 4. new text end new text begin Suspicious activity report. new text end new text begin Each time a money transmitter requests that new text end 3.8 new text begin the commissioner put the name of an individual on the "No Transmit List" pursuant new text end 3.9 new text begin to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a new text end 3.10 new text begin suspicious activity report pursuant to the federal Bank Secrecy Act. new text end 3.11    Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision 3.12to read: 3.13     new text begin Subd. 5. new text end new text begin High incidence of schemes to defraud. new text end new text begin The commissioner, after consulting new text end 3.14 new text begin with licensed money transmitters, may recommend a maximum transaction amount for new text end 3.15 new text begin money transmissions to countries associated with high incidence of schemes to defraud. new text end 3.16    Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision 3.17to read: 3.18     new text begin Subd. 6. new text end new text begin Notification of attempted receipt of money transfer at unexpected new text end 3.19 new text begin location. new text end new text begin Upon request of a sender of a money transmission, a money transmitter shall new text end 3.20 new text begin promptly notify the sender if the money transmitter receives notice that a person has new text end 3.21 new text begin attempted to receive the transfer at a physical location in a state or country other than the new text end 3.22 new text begin state or country specified by the sender. The money transmitter shall not authorize receipt new text end 3.23 new text begin of the transfer at any physical location not specified in writing by the sender at the time of new text end 3.24 new text begin the transmission unless the money transmitter has received authorization from the sender. new text end 3.25    Sec. 6. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision 3.26to read: 3.27     new text begin Subd. 7. new text end new text begin Verification of name and location of receipt of money transfer. new text end 3.28 new text begin Upon request of a sender or the authorized delegate of a money transmission, a money new text end 3.29 new text begin transmitter shall provide the sender verification of the location where the transfer was new text end 3.30 new text begin received and the name of the person receiving the transfer. This subdivision only applies new text end 3.31 new text begin to transmissions received at a physical location. new text end 4.1    Sec. 7. new text begin EFFECTIVE DATE. new text end 4.2 new text begin This act is effective January 1, 2014, and applies to money transfers initiated on or new text end 4.3 new text begin after that date. new text end