. . . .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 1 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 2 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 3 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 4 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 5 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 6 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. 7 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 BACK TO TOP 8