SF2657 Summary

• Creates a private right of action allowing individuals defrauded through money transfers to sue transmitters in district court and recover the transmitted amount plus fees, costs, and attorney fees under specified circumstances.

• Establishes liability for money transmitters when they knew or consciously avoided knowing a transfer was fraudulent, failed to comply with fraud warning requirements, or failed to identify disqualified senders/receivers or those on a "No Transmit List."

• Requires money transmitters to include a section on all send-money forms designed to detect whether the transfer purpose is fraudulent.

• Mandates money transmitters provide written and verbal warnings about recurring and current fraud schemes, with written warnings updated at least annually and verbal warnings given when consumer conduct suggests potential fraud.

• Requires money transmitters to investigate all fraud complaints from customers and law enforcement, create investigation reports documenting details of each case, and use reports to monitor fraud trends and assist law enforcement in preventing future fraudulent transfers.