Current through Register Vol. 46, No. 12, March 20, 2024
(a) Each licensee must submit to the
superintendent as of the close of business on December 31, 1989 a written
description of the licensee's general procedures by which it intends to enter
into agency contracts to engage in money transmission in this State. This
description must include the licensee's policies and procedures and other
details regarding the following matters:
(1) a
brief summary of the proposed money transmission activities to be engaged in by
the agents and subagents and a description of how money is to be transferred to
the beneficiaries and an undertaking by the licensee to assume responsibility
for consumer losses incurred through an agent's unauthorized activities or as a
result of violations of any laws or regulations; and
(2) the number of agents and subagents and
projected sales volume for travelers checks, money orders and all other
transmission instruments sold; and
(3) the procedures for agent and subagent
selection including the method of ascertaining the agent's and subagent's
credit standing; and
(4) the
procedures that agents and subagents shall follow relating to:
(i) recordkeeping;
(ii) safeguarding travelers checks, money
orders and all other instruments or orders for the transmission or payment of
money;
(iii) remittance of proceeds
of sales of travelers checks, money orders and all other instruments or orders
for transmission or for payment of money sold to the public (i.e., time within
which such proceeds are required to be remitted to the licensee, and remittance
procedures);
(iv) reporting
procedures to be followed by agents and subagents when reporting to the
licensee the sale of travelers checks, money orders and all other instruments
or orders for the transmission or payment of money sold to the public including
but not limited to the time within which such sales are to be reported to the
licensee, and procedures for reporting such sales; and
(5) copies of any documentation which the
licensee will require its agents and subagents to furnish the public in
connection with the money transmission activities including but not limited to
samples of travelers checks, money orders and all other instruments or orders
for the transmission or payment of money sold, including forms and receipts;
and
(6) procedures for distributing
policies and procedures pertaining to agents and subagents and licensee's
program to assure agent's and subagent's compliance; and
(7) compensation arrangement with agent and
subagent; and
(8) bonding and
insurance of agents and subagents; and
(9) the licensee's policy relating to loans
to and investment in agents and subagents except loans and investments made by
a regulated financial institution in the ordinary course of its business;
and
(10) in the case of money
transmissions other than by sale of money orders and travelers checks, the
names and addresses of correspondents used to make delivery of money to
beneficiaries; and
(11) such other
information, and documentation as the superintendent may require.
Such information is to be provided within 45 days of
December 31, 1989 and at such other times as the superintendent may
require.
(b) In
addition, each licensee shall submit to the superintendent as of the close of
business on December 31, 1989 the following information:
(1) a listing in alphabetical order of its
agents and subagents in this State showing their full names and addresses and
licensee assigned identification number(s) if grouped by the category of
transmission activity the licensee has authorized the agent and subagent to
conduct on its behalf; and
(2) a
specimen copy of the agency contract between the licensee and its agents and
subagents including all attachments, amendments and supplements. Such
information is to be provided within 45 days of December 31, 1989 and at such
other times as the superintendent may require.
(c) Upon any change in any material aspect of
a licensee's policies and procedures, including but not limited to the items
enumerated under paragraphs (a)(3) through (11) of this section, the licensee
shall file with the superintendent a written description of the change within
10 days of implementation.
(d)
(1) Every agent and subagent, other than a
bank, which is engaged in money transmission, except one engaged exclusively in
the sale or issuance of travelers checks and/or money orders, shall post and at
all times display in full public view, at both its principal office and at each
branch office in this State a sign or signs in the English language and in any
other predominant language spoken by its customers. Each sign shall be no less
than 20 inches wide and 12 inches high with letters at least one-half inch in
height prominently indicating the following:
(i) name, address and telephone number of the
principal office of the agent and subagent and the type of money transmission
activity which the agent and subagent has been authorized to conduct by the
licensee; and
(ii) name and address
of the licensee; and a telephone number established by the licensee to answer
questions and register complaints; and
(iii) that the licensee is licensed and
regulated by the New York State Banking Department and that unresolved consumer
complaints may be mailed to the New York State Banking Department, Consumer
Services Division, as set forth in section
1.1 of
Supervisory Policy G 1 of this Title.
(2) Every agent or subagents, other than a
bank, which is engaged in money transmission, except one engaged exclusively in
the sale or issuance of travelers checks and/or money orders, shall be provided
by the licensee with a notice no less than four inches by six inches to
publicly display on the agent's and subagent's front window or entrance door
containing the following information:
(i) the
name of the licensee; and
(ii) the
statement that the licensee is "Licensed as a Money Transmitter by the Banking
Department of the State of New York"; and
(iii) its designation of the agent to act in
such capacity.
(e) A receipt, or other evidence of
acceptance of funds shall be given to every person who utilizes an agent and
subagent of a licensee to transfer money. The receipt issued by the agent and
subagent of the licensee shall contain the information required in section
406.3(f)
of this Part and the following information:
(1) that the licensee is liable for the
nondelivery or delayed delivery;
(2) the refund policy of the
licensee;
(3) the dollar amount of
transmission; and
(4) the fee
charged.