NY S00166

Money transmitters must provide clear, prominent warnings to consumers before completing wire transfers or electronic fund transfers, including written warnings on authorization forms or visible signs, and oral warnings delivered at sufficient volume and cadence for ordinary consumers to understand.

Warning content must include a bold, capital letter title stating "Warning: do not fall victim to consumer fraud" and information alerting consumers about dangers of sending funds for lottery winnings, credit card guarantees, loans, internet or phone offers, and transfers to unknown persons or unverifiable identities.

Warnings must also include information on how to ask questions of sales clerks or representatives and how to stop a transfer.

Exemptions apply to electronic funds transfers where funds are not transferred directly to another person and are not available for immediate use, and to transfers made with gift certificates as defined in General Business Law section 396-i.

Violations are subject to civil penalties of up to $250 for the first violation and $500 for each subsequent violation, with the law taking effect 180 days after enactment.