Minnesota Legislature
HF 194
1st Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 05/02/2013 04:40pm
KEY: stricken = removed, old language.
underscored = added, new language.
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 include sufficient identifying information
1.18about individuals on the list to allow for money transmitters to match names on the "No
1.19Transmit List" with the names of individuals seeking to utilize the money transmitter's
1.20services to make money transmissions.
1.21(b) The "No Transmit List" shall be populated in the following ways:
1.22(1) an individual may request that the commissioner put the individual's name on
1.23the "No Transmit List;"
2.1(2) persons with the legal authority to act on behalf of an individual may request that
2.2the commissioner put the individual's name on the "No Transmit List;"
2.3(3) money transmitters shall request that the commissioner put the names of
2.4individuals on the "No Transmit List" that the money transmitter, their employees, their
2.5authorized delegates, or their authorized delegates' employees have detected are victims
2.6of a scheme to defraud and the names of individuals they have detected are participants
2.7in a scheme to defraud individuals residing in Minnesota;
2.8(4) state and local law enforcement agencies and departments may request that the
2.9commissioner put the names of individuals residing in Minnesota who have been victims
2.10of a scheme to defraud on the "No Transmit List"; and
2.11(5) money transmitters shall request that the commissioner put the names of
2.12individuals on the "No Transmit List" who have made a request directly to the money
2.13transmitter to be prohibited from making or receiving money transmissions.
2.14(c) An individual on the "No Transmit List" shall remain on the list for a minimum
2.15of one year. After the expiration of one year, the individual may at any time request
2.16that his or her name be removed from the "No Transmit List," otherwise the name will
2.17remain on the list. An individual whose name was put on the "No Transmit List" by a
2.18person authorized to act on an individual's behalf shall remain on the list for a minimum of
2.19one year. After the expiration of one year, the person authorized to act on the individual's
2.20behalf may at any time request that the commissioner remove the individual's name from
2.21the "No Transmit List," otherwise the name will remain on the list.
2.22(d) An individual who requests that the individual's name be put on the "No Transmit
2.23List" may indicate at the time of the request that the name shall not be removed from
2.24the "No Transmit List" unless both the individual and at least one of two designated
2.25individuals requests the individual's name be removed from the list.
2.26(e) The commissioner shall create request forms and establish procedures for
2.27submission of requests under this subdivision. The commissioner's forms and procedures
2.28shall include necessary requirements for verifying the identity and authority of individuals
2.29submitting requests. All requests must be submitted to the commissioner on the forms
2.30created by the commissioner and in accordance with the procedures established by the
2.31commissioner.
2.32(f) Except as otherwise provided in this paragraph, data on individuals in the "No
2.33Transmit List" and in requests to have names put on or removed from the list are private
2.34data on individuals as defined in section 13.02, subdivision 12. The name of an individual
2.35on the "No Transmit List" may be provided to the individual or a person authorized to act
2.36on the individual's behalf and shall be provided to a money transmitter through a matching
3.1process for the purpose of determining whether it may initiate a money transmission. Data
3.2classified under this paragraph may be disclosed to requesting law enforcement agencies
3.3for law enforcement purposes or to other government agencies for purposes related to the
3.4regulation of money transmissions.
3.5 Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.6to read:
3.7 Subd. 4. Suspicious activity report. Each time a money transmitter requests that
3.8the commissioner put the name of an individual on the "No Transmit List" pursuant
3.9to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a
3.10suspicious activity report pursuant to the federal Bank Secrecy Act.
3.11 Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.12to read:
3.13 Subd. 5. High incidence of schemes to defraud. The commissioner, after consulting
3.14with licensed money transmitters, may recommend a maximum transaction amount for
3.15money transmissions to countries associated with high incidence of schemes to defraud.
3.16 Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.17to read:
3.18 Subd. 6. Notification of attempted receipt of money transfer at unexpected
3.19location. Upon request of a sender of a money transmission, a money transmitter shall
3.20promptly notify the sender if the money transmitter receives notice that a person has
3.21attempted to receive the transfer at a physical location in a state or country other than the
3.22state or country specified by the sender. The money transmitter shall not authorize receipt
3.23of the transfer at any physical location not specified in writing by the sender at the time of
3.24the transmission unless the money transmitter has received authorization from the sender.
3.25 Sec. 6. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.26to read:
3.27 Subd. 7. Verification of name and location of receipt of money transfer.
3.28Upon request of a sender or the authorized delegate of a money transmission, a money
3.29transmitter shall provide the sender verification of the location where the transfer was
3.30received and the name of the person receiving the transfer. This subdivision only applies
3.31to transmissions received at a physical location.
4.1 Sec. 7. EFFECTIVE DATE.
4.2This act is effective January 1, 2014, and applies to money transfers initiated on or
4.3after 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 include sufficient identifying information
1.18about individuals on the list to allow for money transmitters to match names on the "No
1.19Transmit List" with the names of individuals seeking to utilize the money transmitter's
1.20services to make money transmissions.
1.21(b) The "No Transmit List" shall be populated in the following ways:
1.22(1) an individual may request that the commissioner put the individual's name on
1.23the "No Transmit List;"
2.1(2) persons with the legal authority to act on behalf of an individual may request that
2.2the commissioner put the individual's name on the "No Transmit List;"
2.3(3) money transmitters shall request that the commissioner put the names of
2.4individuals on the "No Transmit List" that the money transmitter, their employees, their
2.5authorized delegates, or their authorized delegates' employees have detected are victims
2.6of a scheme to defraud and the names of individuals they have detected are participants
2.7in a scheme to defraud individuals residing in Minnesota;
2.8(4) state and local law enforcement agencies and departments may request that the
2.9commissioner put the names of individuals residing in Minnesota who have been victims
2.10of a scheme to defraud on the "No Transmit List"; and
2.11(5) money transmitters shall request that the commissioner put the names of
2.12individuals on the "No Transmit List" who have made a request directly to the money
2.13transmitter to be prohibited from making or receiving money transmissions.
2.14(c) An individual on the "No Transmit List" shall remain on the list for a minimum
2.15of one year. After the expiration of one year, the individual may at any time request
2.16that his or her name be removed from the "No Transmit List," otherwise the name will
2.17remain on the list. An individual whose name was put on the "No Transmit List" by a
2.18person authorized to act on an individual's behalf shall remain on the list for a minimum of
2.19one year. After the expiration of one year, the person authorized to act on the individual's
2.20behalf may at any time request that the commissioner remove the individual's name from
2.21the "No Transmit List," otherwise the name will remain on the list.
2.22(d) An individual who requests that the individual's name be put on the "No Transmit
2.23List" may indicate at the time of the request that the name shall not be removed from
2.24the "No Transmit List" unless both the individual and at least one of two designated
2.25individuals requests the individual's name be removed from the list.
2.26(e) The commissioner shall create request forms and establish procedures for
2.27submission of requests under this subdivision. The commissioner's forms and procedures
2.28shall include necessary requirements for verifying the identity and authority of individuals
2.29submitting requests. All requests must be submitted to the commissioner on the forms
2.30created by the commissioner and in accordance with the procedures established by the
2.31commissioner.
2.32(f) Except as otherwise provided in this paragraph, data on individuals in the "No
2.33Transmit List" and in requests to have names put on or removed from the list are private
2.34data on individuals as defined in section 13.02, subdivision 12. The name of an individual
2.35on the "No Transmit List" may be provided to the individual or a person authorized to act
2.36on the individual's behalf and shall be provided to a money transmitter through a matching
3.1process for the purpose of determining whether it may initiate a money transmission. Data
3.2classified under this paragraph may be disclosed to requesting law enforcement agencies
3.3for law enforcement purposes or to other government agencies for purposes related to the
3.4regulation of money transmissions.
3.5 Sec. 3. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.6to read:
3.7 Subd. 4. Suspicious activity report. Each time a money transmitter requests that
3.8the commissioner put the name of an individual on the "No Transmit List" pursuant
3.9to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a
3.10suspicious activity report pursuant to the federal Bank Secrecy Act.
3.11 Sec. 4. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.12to read:
3.13 Subd. 5. High incidence of schemes to defraud. The commissioner, after consulting
3.14with licensed money transmitters, may recommend a maximum transaction amount for
3.15money transmissions to countries associated with high incidence of schemes to defraud.
3.16 Sec. 5. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.17to read:
3.18 Subd. 6. Notification of attempted receipt of money transfer at unexpected
3.19location. Upon request of a sender of a money transmission, a money transmitter shall
3.20promptly notify the sender if the money transmitter receives notice that a person has
3.21attempted to receive the transfer at a physical location in a state or country other than the
3.22state or country specified by the sender. The money transmitter shall not authorize receipt
3.23of the transfer at any physical location not specified in writing by the sender at the time of
3.24the transmission unless the money transmitter has received authorization from the sender.
3.25 Sec. 6. Minnesota Statutes 2012, section 53B.27, is amended by adding a subdivision
3.26to read:
3.27 Subd. 7. Verification of name and location of receipt of money transfer.
3.28Upon request of a sender or the authorized delegate of a money transmission, a money
3.29transmitter shall provide the sender verification of the location where the transfer was
3.30received and the name of the person receiving the transfer. This subdivision only applies
3.31to transmissions received at a physical location.
4.1 Sec. 7. EFFECTIVE DATE.
4.2This act is effective January 1, 2014, and applies to money transfers initiated on or
4.3after that date.