HF 343

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/05/2012 04:06pm

A bill for an act
relating to commerce; regulating money transmitters; requiring cooperation in
combatting fraud; amending Minnesota Statutes 2010, section 53B.18; proposing
coding for new law in Minnesota Statutes, chapter 53B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 53B.18, is amended to read:

53B.18 PROHIBITED PRACTICES.

No licensee shall:

(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;

(2) refuse to indemnify an instrument holder for any misappropriation of money
caused by any of its authorized delegates in conducting activities on behalf of the licensee
for whom it acts as an authorized delegate; or

(3) fail to transmit all money received for wire transmission in accordance with the
purchaser's instructions within five days; or

(4) fail to comply with section 53B.27.

Sec. 2.

[53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED
IN COMBATTING FRAUD.

Subdivision 1.

Fraud prevention measures required.

Each money transmitter
shall:

(1) provide a clear, concise, and conspicuous consumer fraud warning on all
transmittal forms used by consumers;

(2) provide consumer fraud prevention training for agents involved with transmittals;

(3) monitor agent activity relating to consumer transmittals; and

(4) establish a toll-free number for consumers to call to report fraud or suspected
fraud.

Subd. 2.

Voluntary disqualification by customer.

A money transmitter that
originates money transfers in this state must allow an individual to voluntarily disqualify
the individual from sending or receiving money transfers. The disqualification lasts for
one year, unless the individual requests that it be in effect for a period longer than one
year. The individual may terminate the disqualification at any time upon written notice
to the money transmitter.