Bill

Bill > A2714


NJ A2714

Revises "New Jersey Money Transmitters Act"; provides consumer protections; increases reporting and record keeping requirements.


summary

Introduced
02/01/2018
In Committee
02/01/2018
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill makes various revisions to the "New Jersey Money Transmitters Act" to require licensed money transmitters and their delegates to provide more reporting, record keeping and consumer disclosures. The bill requires licensees to prominently display license information at their locations. The bill broadens the consent deemed to be given by licensees and delegates to include record inspection rights for appropriate law enforcement representatives in addition to the Commissioner of Banking and Insurance, and requires licensees to keep records for five years instead of the three years required by the current act. The bill requires licensees to file quarterly reports with the commissioner, in addition to the annual reports presently required, and raises the penalty to $200 per day, from not more than $100 per day, as to any licensee who fails to file any report. The licensee shall also file annually with the commissioner, a copy of the licensee's most recent registration with the Financial Crimes Enforcement Network (FinCEN) as a money transmitter business pursuant to 31 C.F.R. s.1010.100 et seq. The bill expands the liability of licensees for certain acts of their delegates and provides for license suspension upon conviction for certain crimes. The bill also requires a delegate to prominently display at each of its locations a notice indicating that the delegate is an authorized delegate of a licensee. Further, the bill mandates that the department maintain a website to make licensee and delegate information available to the public. Finally, the bill increases the crime of operating as a money transmitter without a license from a crime of the third degree to a crime of the second degree. This bill provides that funds belonging to a licensee and deposited in a financial institution shall not constitute trust funds, unless the financial institution has actual knowledge that such funds are owned by or belong to the licensee. The bill also provides that the licensee is liable to a purchaser or holder of an outstanding payment instrument which is issued by the licensee or received by the licensee's authorized delegate for transmission and set-off by the financial institution. If the licensee has insufficient assets to make the purchaser or holder whole, the purchaser or holder will be entitled to reimbursement under the surety bond that the act currently requires all licensees to have. The bill also makes technical corrections.

AI Summary

This bill makes various revisions to the "New Jersey Money Transmitters Act" to require licensed money transmitters and their delegates to provide more reporting, record keeping, and consumer disclosures. Key provisions include: - Requiring licensees to prominently display their license information at their locations, and expanding consent for record inspections by law enforcement in addition to the Commissioner of Banking and Insurance. - Increasing record-keeping requirements from 3 to 5 years, and requiring licensees to file quarterly reports (in addition to annual reports) with the commissioner, with higher penalties for late or missing reports. - Expanding the liability of licensees for acts of their delegates, and requiring delegates to prominently display that they are authorized delegates. - Mandating the department maintain a public website with licensee and delegate information. - Increasing the crime of operating as an unlicensed money transmitter from a third-degree to a second-degree crime. - Clarifying that funds deposited by licensees do not constitute trust funds unless the financial institution has actual knowledge they belong to the licensee, and making licensees liable to purchasers/holders of outstanding payment instruments. The bill aims to strengthen consumer protections and increase oversight and reporting requirements for licensed money transmitters in New Jersey.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Consumer Affairs Committee (on 02/01/2018)

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