NY A02282

Money transmitters must provide a clear, conspicuous consumer fraud warning prior to initiating transfers and on all funds transfer forms used by consumers.

Money transmitters must provide annual consumer fraud prevention training for agents involved with funds transfers and monitor agent activity relating to consumer funds transfers.

Money transmitters must establish a toll-free number for consumers to report fraud or suspected fraud and obtain information on how to stop a transfer.

Warning requirements do not apply to electronic funds transfers where funds are not transferred directly to another person and are not available for immediate use.

Violations are subject to civil penalties of up to $250 for the first violation and $500 for each subsequent violation.