6-1235. Money transmission; transmission of money by wire or electronic transfer; consumer fraud warnings; requirements; applicability

294 words·~1 min read·/az/title-6/6-1235

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A licensee that engages in the business of receiving money for transmission on behalf of consumers for personal, family or household purposes shall provide consumer fraud warnings in accordance with subsection B of this section that include all of the following:

1. The risks of consumer fraud and how to find additional information about consumer fraud regarding money transmission.

2. Information about the dangers of transmitting money to unknown persons or to persons whom the sender cannot verify.

3. Information about how to stop a money transmission, if that option is available.

4. Information warning the sender that monies may not be returned once the money transmission is complete.

B. The licensee shall provide the information as prescribed in subsection A of this section to a consumer before transmitting any money by either of the following methods:

1. In person, in a document or other materials provided directly to the consumer or displayed prominently in the location in which the licensee or an authorized delegate of the licensee engages in receiving money for transmission. The written warning shall be in a type that contrasts with the background against which the written warning appears.

2. Through electronic transmission. The written warning shall be in a type that contrasts with the background against which the written warning appears.

C. This section does not apply to either of the following:

1. An electronic funds transfer where the monies are not transferred directly to another person and are not available for immediate use.

2. An electronic funds transfer that is made with a gift certificate.

3. A licensee that can demonstrate they provide or require their authorized delegate to provide annual fraud prevention training to employees that covers the indicia of fraud associated with electronic money transfers.