Department of Banking and Finance bulletin, May 31, 2004

. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .

STATE OF GEORGIA
DEPARTMENT OF BANKING AND FINANCE
2990 Brandywine Road, Suite 200 Atlanta, Georgia 30341-5565
DAVID G. SORRELL, COMMISSIONER

Phone: (770) 986-1633

Fax: (770) 986-1655

Internet Address: http://www.gadbf.org/
May 31, 2004 The following is a summary of official action taken on applications by State Financial Institutions under Chapter 7-1 of the Code of Georgia and petitions for Certificate of Incorporation of Financial Institutions and other matters of interest during the month of May 2004.
In This Issue:
FRAUD ALERT - PAYCHECK STUBS
MONEY TRANSMITTER BROCHURES - NOW AVAILABLE IN SPANISH
BANK SECRECY ACT/ANTI-MONEY LAUNDERING: GUIDANCE ON MONEY SERVICE BUSINESS CUSTOMERS

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APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Community Bank of Georgia 692 West Parker Street Baxley, GA 31513 Appling County

CAPITALIZATION APPROVAL DATE

$ 5,645,097

08-01-2003

BEGIN BUSINESS DATE
05-11-2004

Hamilton State Bank 6323 Grand Hickory Drive Suite 100-G Braselton, GA 30517 Gwinnett County

$ 10,000,000

Pending

Georgia Trust Bank 2685 Mall of Georgia Boulevard Buford, GA 30519 Gwinnett County

$ 10,000,000

Pending

Mountain Valley Community Bank 136 North Main Street Cleveland, GA 30528 White County

$ 7,244,000

12-15-2003

05-04-2004

New Horizons Bank 489 Highland Circle East Ellijay, GA 30540 Gilmer County

$ 8,000,000

01-20-2004

05-21-2004

American United Bank 1800 Old Norcross Road Lawrenceville, GA 30044 Gwinnett County

$ 10,000,000

Pending

Tifton Banking Company 729 West Second Street Tifton, GA 31974 Tift County

$ 7,000,000

Pending

Local Bank of Middle Georgia 306-308 North Davis Drive Warner Robins, GA 31093 Houston County

$ 7,000,000

Pending

PREVIOUS NAME The Gordon Bank

FINANCIAL INSTITUTION CONVERSIONS

CONVERTED TO The Gordon Bank Gordon Wilkinson County

APPROVAL DATE Pending

EFFECTIVE DATE

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APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION SunTrust Bank Atlanta

BRANCH OFFICE Cascade Branch Office 1165 Fairburn Road Atlanta, GA 30331 Fulton County

APPROVAL DATE
03-23-2004

BEGIN BUSINESS DATE
05-17-2004

SunTrust Bank Atlanta

Loch Raven Branch Office 1610 East Joppa Road Baltimore, MD 21286 Baltimore County

06-02-2003

05-24-2004

SunTrust Bank Atlanta

Gunbarrel Branch Office 1900 Gunbarrel Road Chattanooga, TN 37412 Hamilton County

01-28-2004

05-24-2004

SunTrust Bank Atlanta

John Young Parkway/Conroy Branch Office 5190 South John Young Parkway Orlando, FL 32939 Orange County

05-06-2004

SunTrust Bank Atlanta

John Rolfe Commons Branch Office 2110 John Rolfe Parkway Richmond, VA 23233 Henrico County

04-23-2004

05-24-2004

SunTrust Bank Atlanta

Laurel Springs Branch Office Intersection of Peachtree Parkway and Laurel Springs Parkway Suwanee, GA 30024 Forsyth County

04-01-2004

05-24-2004

The First Port City Bank Bainbridge

Southside Branch Office 1410 Tallahassee Highway Bainbridge, GA 39819 Decatur County

05-28-2004

Hamilton State Bank (I.O.) Braselton

Hall County Branch Office 441-A E. E. Butler Parkway Gainesville, GA 30501 Hall County

Pending

Georgia Trust Bank Buford

Kennesaw Branch Office 3401 George Busbee Parkway Kennesaw, GA 30144 Cobb County

Pending

Main Street Bank Covington
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Windward Parkway Branch Office Market Place and Windward Parkway Alpharetta, GA 30005 Fulton County

05-10-2004

FINANCIAL INSTITUTION The Heritage Bank Hinesville
FirstCity Bank Stockbridge
Colony Bank Worth Sylvester
Bank of Upson Thomaston
The Park Avenue Bank Valdosta
Talbot State Bank Woodland
FINANCIAL INSTITUTION SunTrust Bank Atlanta
Appalachian Community Bank Ellijay

BRANCH OFFICE Rincon Branch Office 434 South Columbia Avenue Rincon, GA 31326 Effingham County

APPROVAL DATE
01-26-2004

BEGIN BUSINESS DATE
05-19-2004

Fairways Court Branch Office 831 Fairways Court Stockbridge, GA 30281 Henry County

03-22-2004

05-01-2004

Colony Bank Village Center Branch Office 1909 Highway 82 West Tifton, GA 31794 Tift County

05-17-2004

Fayetteville Branch Office 600 North Glynn Street Fayetteville, GA 30214 Fayette County

05-13-2004

Stockbridge Branch Office 500 Eagles Landing Parkway Stockbridge, GA 30281 Henry County

05-03-2004

Tyrone Branch Office 998 Senoia Road Tyrone, GA 30290 Fayette County

11-12-2003

05-17-2004

APPLICATIONS TO CHANGE LOCATION

From: To:

CHANGE LOCATION OF Rouse Tower Branch Office 6060 Jefferson Avenue Newport News VA 23666 New Market South Branch Office 5211 West Mercury Boulevard Hampton VA 23605 County

APPROVAL EFFECTIVE

DATE

DATE

Pending

From: To:

Blue Ridge Branch Office 2835 Scenic Drive Blue Ridge GA 30513 Fannin County 150 Orvin Lance Connector Blue Ridge GA 30513 Fannin County

Pending

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PREVIOUS NAME United Commercial Bank Atlanta

NOTICE OF CHANGE IN NAME
NEW NAME Atlanta Business Bank

APPROVAL EFFECTIVE

DATE

DATE

05-14-2004

PROPOSED NAME HeritageBank of the South

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY Dougherty County

APPLICANT Ms. Marianne E. Roche Silver, Freedman & Taff, LLP 1700 Wisconsin Ave, NW Washington, DC 20007

Peach State Bank & Trust

Hall County

Mr. Joel B. Carter Attorney Powell Goldstein Frazer & Murphy 191 Peachtree St., NE 16th Floor Atlanta, GA 30303-1736

State Bank and Trust Company

Dooly County

Mr. John B. Kline Principal Mauldin & Jenkins, LLC P.O. Box 724888 Atlanta, GA 31139-1888

FINANCIAL INSTITUTION (SURVIVOR) Bank of North Georgia
Alpharetta

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION Mountain National Bank Tucker

APPROVAL EFFECTIVE

DATE

DATE

Pending

Bank of North Georgia Alpharetta

Charter Bank & Trust Co. Marietta

Pending

United Community Bank Blairsville

1st Community Bank Fairburn

05-27-2004

Gainesville Bank & Trust Gainesville

Lumpkin County Bank Dahlonega

Pending

Gainesville Bank & Trust Gainesville

Southern Heritage Bank Oakwood

Pending

Credit Unions Atlanta City Employees Credit Union Atlanta
Georgia Federal Credit Union Atlanta

Wheat Street Church Federal Credit Union Atlanta
Educator's Credit Union Athens

Pending Pending

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APPLICATIONS TO BECOME A BANK HOLDING COMPANY AND/OR TO ACQUIRE VOTING STOCK OF A FINANCIAL INSTITUTION

BANK HOLDING COMPANY

TO ACQUIRE

APPROVAL DATE

FORMATIONS Piedmont Bancshares, Inc. Atlanta, GA

Piedmont Bank of Georgia Atlanta, GA

Pending

Brand Group Holdings, Inc. Lawrenceville, GA

The Brand Banking Company Lawrenceville, GA

05-06-2004

NSB Holdings, Inc. Macon, GA

New Southern Bank Macon, GA

Pending

ACQUISITIONS Upson Bankshares, Inc. Thomaston, GA
CHECK SELLER
Eastern Union, Inc. Atlanta, GA

The First National Bank of Polk County Cedartown, GA

Pending

APPLICATIONS FOR NEW SALE OF CHECK
APPROVAL DATE 05-28-2004

MONEY TRANSMITTER
Instapay, Inc. Austin, TX

MONEY TRANSMITTER LICENSES ISSUED
APPROVAL DATE 05-25-2004

Alpine Exchange, Inc. Lilburn, GA

05-19-2004

Trans America Remittance & Products - Marietta, Inc. Marietta, GA

05-19-2004

CHECK CASHER LICENSES ISSUED

CITY Newnan Atlanta Thomasville Alpharetta College Park Norcross

APPLICANT NAME Cash 4 U Pawn G&S Check Cashing, Inc. New Millennium Financials, Inc. Park, Grace Patwary Enterprises, Inc. S & M Financial Services, LLC

* =Exempt (O.C.G.A. 7-1-709)

TRADE NAME Cash 4 U Pawn G&S Check Cashing T&N Check Cashers Check Cash Plus Quick Check Cashing S & M Financial Services

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NOTICES
FRAUD ALERT - PAYCHECK STUBS
The Department has received reports that counterfeit paycheck stubs are available for sale from the internet. One such site is: www.paycheckstub.com.
At this particular site individuals were reportedly able to purchase a fictitious paycheck stub by selecting from a variety of "employers," salary range, pay period, etc. to help qualify for credit not attainable otherwise.
Relying solely on a paycheck stub to verify gainful employment or income level could prove problematical and alternative or additional verification procedures should be developed and utilized by the institution as appropriate.
MONEY TRANSMITTER BROCHURES - NOW AVAILABLE IN SPANISH
In November 2003, the Department published two brochures related to money transmission and money transmitters one directed at the money transmission industry and one directed at consumers. These two brochures are now available in Spanish.
Both brochures are available for viewing or downloading from our website in English or Spanish at: http://www.gadbf.org/consumer_dbf.html
Transmitting Money - What Consumers Need to Know (Transmitir Dinero -Lo Qu Consumidores Necesitan Saber Ahora) - This brochure gives consumers a basic understanding of the Georgia laws that apply to money transmission and other important things they should know before sending money within the U.S. or abroad.
Requirements for Operating a Money Transfer Business in Georgia (Requisitos Para Operar Un Negocio De Transferencia De Dinero En Georgia) - This brochure provides the industry with an overview of the Georgia laws applying to their business and some key topics within the state and federal laws and regulations that apply to their business.
BANK SECRECY ACT/ANTI-MONEY LAUNDERING: GUIDANCE ON MONEY SERVICE BUSINESS CUSTOMERS
The Department licenses and regulates many categories of Money Service Businesses (MSBs), as defined by 31 CFR 103.11(uu). MSBs provide services such as money orders, traveler's checks, money transmission, check cashing, currency exchange and stored value. Appropriate practices and procedures must be implemented in MSBs to make certain that they do not present a risk of being used for money laundering.
Certain MSBs must register with the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). In addition, 18 USC 1960 provides penalties for conducting an illegal money transmitting business. Failure to register with FinCEN as required, or operating without a license in a state where such operation is punishable as a misdemeanor or a felony constitutes conducting an illegal money transmitting business under Federal law. MSBs must also implement anti-money laundering compliance programs, file currency transaction and suspicious activity reports (SARs), and maintain a variety of records on their customers. Article 4 and 4A of the Official Code of Georgia Annotated (OCGA), OCGA 7-1-845, Article 11 of OCGA, and Chapter 80-3-1 of the Department's Rules and Regulations detail the licensing requirements and other requirements applicable to check cashers, check sellers, and money transmitters operating in Georgia, including any penalties for operating without a license or violating applicable laws and regulations.
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The Department is concerned that some banks provide, or have provided, banking services to unlicensed or unregistered MSBs, particularly unlicensed money transmitters. Banks should perform careful due diligence of the accounts of MSBs to control money laundering and reputation risks. For example, banks should verify registration and licensing status, and consider visiting customers at their place of business and implementing monitoring procedures to identify and report suspicious activity. As part of their due diligence programs, banks should also consider obtaining and reviewing the following on the MSB:
z The MSB's license (if required), including any restrictions z Financial information, including primary lines of business and major customers, and local reputation z The MSB's anti-money laundering policies, procedures and controls z Consideration of the purpose, source of funds to open the account, and expected activity z Information on owners of the MSB z Third-party references and information from verification services MSBs who have registered with FinCEN receive letters of acknowledgement from the Internal Revenue Service, Detroit Computing Center (DCC). A bank may rely on this acknowledgement letter as verification that the MSB has properly registered with FinCEN and may ask its MSB customers to provide a copy of this form. If a bank suspects that a customer is an unlicensed or unregistered MSB, it should file a SAR and also notify the Department's Corporate Division of the potential unlicensed company. In addition to considering risk to its reputation, the bank should consider the type of activity in the account (e.g., cash transactions or international wires), patterns of activity (e.g., whether it reflects an ongoing fraud or other criminal activity), and the volume of activity and transaction amounts. The Department licenses money transmitters, sellers or issuers of checks and money orders, and check cashers (with certain exceptions). To determine if a customer is licensed with the Department, ask for a copy of their license or registration and check the Department's website at http://www.ganet.org/dbf/other_institutions.html#MSB Report potential unlicensed companies to Princess Brown, Corporate Manager Money Service Businesses, at (770) 986-1656 or by e-mail to dbfcorp@dbf.state.ga.us
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