New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.4 - Agents and subagents of money transmitters

Current through Register Vol. 46, No. 28, July 10, 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.