MSB newsletter, Issue 1 (July-Sept. 2005)

This is the first edition of the Department's MSB Newsletter. This Newsletter will be a quarterly publication containing topics of interest to the categories of MSBs regulated by the Georgia Department of Banking and Finance. We hope that you will find this publication to be informative and valuable for providing information about the issues affecting your industry.
"In the News"
FinCEN / INTERAGENCY GUIDANCE AND INTERPRETATION ISSUED
On April 26, 2005, the Financial Crimes Enforcement Network (FinCEN) issued several items of interest relating to MSBs. These documents are as follows:
1. Joint News Release from FinCEN and the Federal Banking Agencies on Guidance and Advisory Issued on Banking Services for Money Services Businesses Operating in the United States.
2. FinCEN, along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision, issued interpretive guidance setting forth the minimum steps that banking organizations should take when providing banking services to money services businesses.
3. FinCEN issued a concurrent advisory to money services businesses to emphasize their Bank Secrecy Act (BSA) regulatory obligations and to notify them of the types of information that they will be expected to produce to a banking organization in the course of opening or maintaining account relationships.
4. Statements of William J. Fox, FinCEN Director, April
26, 2005.
All of the above referenced documents can be found on the msb.gov website under "What's New?" at: http://www.msb.gov/new/index.html.

July-September 2005, Issue 1
Inside This Issue:
FinCEN / Interagency Guidance and Interpretation Issued
Bush Team Launches New `Hawala' Crackdown
Georgia Department of Banking and Finance Joins Information-Sharing Campaign to Improve BSA Enforcement
Opinion of the US District Court: Interpreting Unlicensed Money Transmitter
Department's 2005 Housekeeping Bill and Notice of Proposed Rulemaking
2005 Georgia Check Casher Conference Highlights
2005 Check Casher Renewal Period
MTRA 2005 Annual Meeting and Conference

1

BUSH TEAM LAUNCHES NEW 'HAWALA' CRACKDOWN
Wall Street Journal, May 24, 2005
WASHINGTON -- The Bush administration has launched a new crackdown on "hawala," or informal money-transfer businesses popular in the Arab world, announcing a series of new arrests and guilty pleas from U.S. residents suspected of funding terrorists.
Officials have "shut down a number of unlicensed money transmittal businesses that were responsible for the transfer of millions of dollars to Afghanistan, Pakistan, and Iran," Michael J. Garcia, assistant secretary of the Immigration and Customs Enforcement arm of the Department of Homeland Security, said in a statement.
The arrests were conducted under the authority of the USA Patriot Act, passed shortly after the September 11, 2001 terrorist attacks and designed to give the federal government greater power on multiple fronts to undermine terrorists. Congress is currently debating renewing the act, and some legislators advocate tougher provisions cracking down on hawala.
As part of yesterday's announcement, the ICE also released a broader look at the scale of the anti-hawala campaign of the past three and a half years. Since the Patriot Act's enactment, a total of 140 individuals have been arrested as part of the agency's attempt to track down and curb unlicensed informal money-transfer businesses and $25.5 million has been seized, according to ICE.
GEORGIA DEPARTMENT OF BANKING AND FINANCE JOINS INFORMATIONSHARING CAMPAIGN TO IMPROVE BANK SECRECY ACT ENFORCEMENT
On June 1, 2005, Georgia Department of Banking and Finance Commissioner David Sorrell signed documents outlining a protocol for sharing information with federal banking agencies to streamline enforcement of the Bank Secrecy Act. Commissioner Sorrell said, "These agreements accomplish something that is unprecedented." The documents highlight the recognition by FinCEN and the Internal Revenue Service (IRS) of the vital role that Georgia plays to prevent money laundering and terrorist financing through both banks and money service businesses (MSBs). Read the full text of the Press Release at: www.gadbf.org/pdfdoc/FinCENMOUPressRelease.pdf.
FinCEN also announced the signing of Memoranda of Understanding (MOU) setting forth information sharing agreements between FinCEN and more than half of the State banking agencies in the country.
These agreements provide the framework for enhanced collaboration and information sharing between Federal and State agencies that will allow FinCEN to better administer the Bank Secrecy Act while simultaneously assisting State agencies to better fulfill their roles as financial institution supervisors.
2

OPINION OF THE U.S. DISTRICT COURT: INTERPRETING UNLICENSED MONEY TRANSMITTER VIOLATING 18 U.S.C. 1960
In United States v. Uddin, a United State District Judge in Detroit held that a person may be prosecuted for operating an illegal money transmitting business under 18 U.S.C. 1960 where the government shows that the person operated a money transmitting business that he knew was not registered with FinCEN. The judge rejected the defense argument that the government also must show that the person operating the money transmitting business knew that the business had to be registered, thereby following the general rule that ignorance of the law is no defense. This case illustrates that money services businesses are responsible for knowing their registration obligations under the Bank Secrecy Act and implementing rules. See the 4/11/2005 opinion on FinCEN's website at: http://www.fincen.gov/rosenopinion1960.pdf.
Regulatory Matters and Important Information
DEPARTMENT'S 2005 HOUSEKEEPING BILL AND NOTICE OF PROPOSED RULEMAKING
The Department's Housekeeping Bill for this legislative session was Senate Bill 82. Only two changes were made to laws affective MSBs. The two Code Sections pertaining to check sellers and money transmitters were revised for the following purposes:
7-1-680. Definitions. To provide the definition for "check holder". The term is used in this Article but was not previously defined.
7-1-683. License application; fee; bonding; alternative deposit of assets. To provide clarification of intent in subsection (c). When the money transmitter's law was enacted in 2003, the intent was to require only a bond for each licensee. In (c), clarification was necessary to reflect that the deposit in lieu of bond option in subsection (c) applies only to check sellers.
To view the full version of Senate Bill SB82 (As Passed), go to the Georgia General Assembly's website at: http://www.legis.state.ga.us/legis/2005_06/fulltext/sb82.htm
NOTICE OF PROPOSED RULEMAKING AND OPPORTUNITY TO COMMENT: Pursuant to the provisions of the Georgia Administrative Procedures Act, Official Code of Georgia Annotated (O.C.G.A.) Chapter 50-13 and by authority of O.C.G.A. 7-1-61, O.C.G.A. 7-1663; O.C.G.A. 7-1-1012, and other cited statutes, the Georgia Department of Banking and Finance has issued its intent to adopt new and amended rules.
3

The proposed changes are in part responsive to law changes in the Department's Housekeeping Bill, SB 82, which was signed by the Governor on May 5, 2005, and effective on May 5, 2005.
A synopsis and purpose precedes each proposed rule, with background information and explanation where applicable.
Comments to the Department of Banking and Finance must be received by July 29, 2005, at the close of business. Please send all comments to:
David G. Sorrell, Commissioner Georgia Department of Banking and Finance 2990 Brandywine Road, Suite 200 Atlanta, GA 30341-5565 Fax: (770) 986-1654 or 1655
The Department will review all comments, may contact commenters to discuss their suggestions, and after the comment period has closed will prepare the final rules. The Department will consider the proposed new rules for adoption at a meeting at 10:00 a.m. on Monday, August 15, 2005 at the offices of the Department of Banking and Finance at Suite 200, 2990 Brandywine Road, Atlanta, Georgia 30341.
PROPOSED CHANGES: SYNOPSIS, PURPOSE AND BACKGROUND
80-3-1-.01 Check Sellers and Money Transmitters: Exemptions and Requirements.
Due to agreements with IRS and FINCEN for the sharing of information, it was necessary to require electronic submission of agent lists. Changes to Paragraph (5) were simple word clarifications due to the addition of the regulation of money transmitters.
80-3-1-.02 Check Cashers.
Additions to Paragraph (1) were made to enhance examination procedures and warn licensees against misrepresentations or the withholding of information. Paragraph (8) provides penalties for those violations. New procedures for closing a check cashing business were added as Paragraph (10), to ensure proper licensing.
80-3-1-.07 Administrative Fines and Penalties. (Check Cashers)
Additional fines for check cashers were added to enforce books and records requirements and for operating without a proper license.
A copy of all proposed rules can be found on our website in the Special Bulletins section at: http://www.gadbf.org/bulletins.html
4

2005 GEORGIA CHECK CASHERS CONFERENCE HIGHLIGHTS
The 2005 Georgia Check Cashers Conference was held on June 20, 2005. This was the first conference of its kind for check cashers in the state of Georgia. Highlights from the conference with links to the materials provided during the conference and other information can be found at: http://www.gadbf.org/CCConferenceMain.htm
If you attended the conference and had questions that were not answered or you would like to submit further questions or comments, please e-mail dbfcorp@dbf.state.ga.us

Actions on Applications During the Previous Quarter

APPROVED CHECK CASHERS

APPLICANT NAME

DBA

CITY

ST APPROVAL

Meghna Express, Inc.

Meghna Express

Chamblee GA 4/1/2005

KGMD, Inc. Number 2

Tobacco Outlet #2

Dalton

GA 4/1/2005

Chaudhry & Sons, Inc.

Texaco Food Mart

Gainesville GA 4/4/2005

OK Investment, Inc.

OK Check Cashing

Doraville

GA 4/12/2005

Sohani Enterprises, Inc.

Forest Parkway Texaco

Ellenwood GA 4/12/2005

N.K Enterprise, Inc.

Mini Food Mart

Loganville GA 4/12/2005

El Exito Checks Cashed, Inc.

El Exito Checks Cashed

Buford

GA 4/18/2005

Platinum Check Cashers, Inc.

Platinum Check Cashers

College Park GA 4/18/2005

Money, Mail Etc., Inc.

Money, Mail Etc.

Winder

GA 4/18/2005

Noor Group, Inc.

Amoco Food Mart

Ellenwood GA 4/19/2005

Espinoza, Samuel A.

Los Amigos

Athens

GA 4/22/2005

Narayan Swaroop Corporation

Locust Grove Exxon

Locust Grove GA 4/22/2005

Pak, Ki Ho

Eddie's Package

Decatur

GA 4/29/2005

Akhteruzzaman, Salim

SF Food Mart

Kennesaw GA 5/2/2005

Ajab Corporation

Buck Saver Amoco

Stockbridge GA 5/2/2005

R & S Universal, Inc.

Kuntry Korner

Winder

GA 5/3/2005

Joyeria y Novedades Latinos, Incorporated Joyeria y Novedades Latinos Gainesville GA 5/5/2005

Parko, Inc.

Vineyard Check Cash

Smyrna

GA 5/5/2005

Z. Noorani, Inc.

Saad's Exp. I

Oakwood

GA 5/6/2005

Kim's Package, Inc.

Kim's Package Check Cashing Lithonia

GA 5/10/2005

Jones, Amon Lee

Amon Lee Jones

Augusta

GA 5/13/2005

Solis, Alemi

Variedades Mexicans Mary Chatsworth GA 5/13/2005

Sahalina, Inc.

Anvil Block BP/Amoco

Ellenwood GA 5/13/2005

Sevak Corporation

155 Super Mart

McDonough GA 5/13/2005

Geiger, Arnold L.

Huddleston Check Cashing Peachtree City GA 5/13/2005

Goldmine Check Cashing, Inc.

Goldmine Check Cashing

Augusta

GA 5/16/2005

Gulbanu Group, Inc.

Texaco Food Mart

Rex

GA 5/16/2005

CheckMax, Inc.

CheckMax

Atlanta

GA 5/23/2005

5

APPLICANT NAME Springfield, Danny W. Williams, Bobby Katyayani, Inc. Shriji Bhavani, Inc. Vinit, Inc. Ham, Su K Rames, Inc. Uni Check Cashing, Inc. Apple Package Ltd. Dhaban, Inc. Shayona, Inc. Kashi, Inc. Razia Group, Inc. Gbadebo, Adesola Glamour, Inc. Harmadia Walla, LLC Kais Business, Inc. Shivanand Corporation Spring Spark, Inc. Enara Group, Inc. Oshima Corporation Lal Enterprises, Inc. Los Tres Compadres, Inc. SAE Enterprise, Inc. Telemax Communications, Inc.

DBA Northside Pawn and Jewelry Williams Chevron Amee's Quick Stop D & D Package Shop Xpress McNeal Market Williams Package Store Uni Check Cashing Apple Package Downtown Beverages Pat's BP Kashi Texaco Joy Financial Center Shell Mart Shell Food Mart Big H Food Store S & S Package Store East Point Package Super H Oshima Corporation Dean Forest Beverage Center Los Tres Compadres Super Valu Telemax Communications

CITY

ST APPROVAL

Cartersville GA 5/23/2005

Donalsonville GA 5/24/2005

Wrightsville GA 5/24/2005

Wrightsville GA 5/24/2005

McRae

GA 5/26/2005

Winder

GA 6/2/2005

Dublin

GA 6/2/2005

Norcross

GA 6/2/2005

Winder

GA 6/6/2005

Lavonia

GA 6/6/2005

Statham

GA 6/6/2005

Winder

GA 6/13/2005

Atlanta

GA 6/14/2005

Decatur

GA 6/23/2005

Chamblee GA 6/23/2005

Ellenwood GA 6/23/2005

Atlanta

GA 6/23/2005

Atlanta

GA 6/23/2005

East Point GA 6/23/2005

Bethlehem GA 6/24/2005

Lilburn

GA 6/24/2005

Savannah GA 6/30/2005

Gainesville GA 6/30/2005

College Park GA 6/30/2005

Norcross

GA 6/30/2005

APPROVED MONEY TRANSMITTERS

APPLICANT NAME Bancomercio de El Salvador, Inc. MiCash, Inc. Choice Money Transfer, Inc.
Xoom Corporation Americana de Servicios
Global Financial Exchange, LLC

DBA Bancomercio MiCash Choice Money Transfer
Xoom Corporation Americana de Servicios Global Financial Exchange

CITY

ST APPROVAL

Falls Church VA 4/8/2005

Washington DC 4/8/2005

New York NY 4/20/2005

San Francisco

CA 5/11/2005

Miami

FL 5/18/2005

Chamblee GA 5/26/2005

6

Important Dates to Remember
2005 CHECK CASHER RENEWAL PERIOD
Renewal forms for licensed and registered check cashers will be mailed out on or before June 30, 2005. Annual renewal forms and renewal fees are due on August 1, 2005. Annual renewals not received prior to September 1, 2005 will be penalized a late fee of $200 for licensees and $50 for registrants.
2005 MONEY TRANSMITTER REGULATORS ASSOCIATION (MTRA) ANNUAL MEETING AND CONFERENCE
The MTRA 2005 Annual Conference will be held in Charleston, South Carolina. The conference will be held at the Francis Marion Hotel, Charleston, on November 6-9, 2005. MTRA holds an annual conference for its members, industry and others where many topics of mutual interest are discussed. MTRA is a national non-profit organization dedicated to the effective and efficient regulation of money transmitters and check sellers in the United States of America. The MTRA membership consists of state regulatory authorities in charge of regulating money transmitters and sellers of traveler's checks, money orders, drafts and other money instruments. To learn more about the 2005 Conference, go to MTRA's website and click on the Annual Conference link http://www.mtraweb.org/.
MTRA: Fosters cooperation among states and federal agencies for the effective and efficient regulation of money transmitters and check sellers.
7

Corporate Division Contact Information

NAME
Carol Webb, Director for Corporate Affairs/Strategic Initiatives
Princess Brown, Corporate Manager - Money Service Businesses
Tervenia Mitchiner, Assistant Financial Examiner
Susan Nelson, Administrative Assistant

E-MAIL ADDRESS webbc@dbf.state.ga.us

PHONE# 770-986-1386

brownp@dbf.state.ga.us 770-986-1656

tervenia@dbf.state.ga.us 770-986-1639 nelson@dbf.state.ga.us 770-986-1652

Main Office Mailing Address: Department of Banking and Finance 2990 Brandywine Road, Suite 200 Atlanta, GA 30341-5565
Website: http://www.gadbf.org
Main Office Phone & Fax Numbers: Phone: (770) 986-1633 or Toll Free: (888) 986-1633 Fax: (770) 986-1654
Corporate Division Fax: (770) 986-1655

E-MAILING THE DEPARTMENT
The Department would like to encourage you to correspond with us using e-mail. Providing written details in the e-mail regarding any questions or concerns you may have allows the Department to forward the request to the appropriate person who handles that area, and if sufficient details are provided in the request, that person can then more efficiently provide you an answer. The main Corporate Division e-mail address is dbfcorp@dbf.state.ga.us
In the event you still need additional information or you do not receive a timely response to your e-mail, please contact us by phone.

NOTE: This publication is delivered to interested parties via e-mail and is also available from the Department's website at: http://www.gadbf.org under Publications, Bulletins. If you would like to be added to our distribution list, please send an e-mail to dbfcorp@dbf.state.ga.us and indicate your name, the company you are with, license or registration # (if applicable), and phone number.
8