New York Assembly Bill A00390

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

Summary

This bill would amend the New York Banking Law to require businesses that receive money for transmission or transmit money by wire or electronic transfer to provide consumers with a clear and prominent anti-fraud warning before completing a transfer. The warning must alert the consumer to common scams, including lottery winnings, credit card guarantees or loans, internet or phone offers, and requests from unknown or unverified recipients. It must also tell consumers how to ask questions of the clerk or representative and how to stop a transfer. The bill specifies how the warning must be delivered depending on the medium used. For written or electronic communications, the warning must appear on the same form used to authorize the transfer, or on a clearly visible sign if no written form is used, and it must be readable and visually distinct. For oral communications, it must be spoken clearly enough for an ordinary consumer to hear and understand. The bill excludes certain electronic funds transfers that are not immediately available to another person, as well as transfers made with gift certificates. It would take effect 180 days after becoming law.

Impact

The bill would add a new section 652-c to the Banking Law and impose a consumer-warning requirement on money transmitters and similar businesses operating in New York. It would create a compliance obligation for in-person, telephone, and electronic money transfer transactions, while exempting certain non-immediate electronic funds transfers and gift certificate transactions. Violations would be subject to civil penalties of up to $250 for a first violation and $500 for each subsequent violation, giving the state an enforcement mechanism aimed at reducing fraud-related losses.

Sentiment

The bill appears to be framed as a consumer-protection measure, with the caption and text emphasizing fraud prevention and consumer awareness. No committee transcript or vote record is available in the provided materials, so there is no documented floor debate or recorded opposition in the record supplied here. Based on the bill text alone, the overall sentiment is supportive of stronger warnings to help consumers avoid scams.

Contention

The main policy issue is the burden placed on money transmitters to provide standardized warnings before completing transfers, including the format and delivery requirements for written, oral, and electronic transactions. Another potential point of contention is whether the warning is sufficiently targeted, since it covers a broad range of scam scenarios and applies to many transfer channels. The exemptions for certain electronic funds transfers and gift-certificate transactions may also raise questions about scope and consistency, but no specific objections or supporters are identified in the provided record.