BILL NUMBER: S2040
SPONSOR: GIANARIS
 
TITLE OF BILL:
An act to amend the banking law, in relation to requiring transmitters
of money to provide a certain warning to consumers
 
PURPOSE:
This bill would require a transmitter of money to provide a warning
about potential fraud to consumers.
 
SUMMARY OF PROVISIONS:
Section one of the bill amends the banking law by adding a new § 652-c,
requiring a person engaged in the business of receiving money for trans-
mission or transmitting money to clearly and prominently warn the
consumers about potential fraud prior to completing the transfer.
Section two of the bill sets the effective date.
 
JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly however,
are especially vulnerable to scams that call for the transferring of
money. People receive calls or emails informing them that they won the
lottery, that they have been offered a great deal, or that they can
apply for a credit card if they simply transfer funds to an unspecified
address. People have lost hundreds of thousands of dollars when they
electronically transfer funds to individuals they do not know. This bill
would require a financial institution to alert their customers to the
dangers of consumer fraud. It would help New Yorkers make better, more
informed decisions before participating in risky money transfers.
 
LEGISLATIVE HISTORY:
2024: S177 (Gianaris) PASSED SENATE
2023: S177 (Gianaris) PASSED SENATE
2022: S166-B (Gianaris) PASSED SENATE
2021: S166-B (Gianaris) PASSED SENATE
2020: S297 (Gianaris) PASSED SENATE / A9728 (Stirpe) died in banks
2019: S297 (Gianaris) PASSED SENATE
2017-18: S3232 (Gianaris) died in Banks
2015-16: S2480 (Gianaris) died in Banks / A2780 (Nolan) died in banks
2013-14: S606-A (Gianaris) died in Finance / A156-A (Nolan) advanced to
third reading
2012: S6276-B (Gianaris) died in Rules / A8928-B (Nolan) PASSED ASSEMBLY
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.