MSB newsletter, Issue 2 (Oct.-Dec. 2005)

October-December 2005, Issue 2

This is the second edition of the Department's MSB Newsletter. This Newsletter is 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. If there are any issues you would like for the Department to highlight or address in future editions, please e-mail your questions or suggestions to dbfcorp@dbf.state.ga.us.

Inside This Issue:
Treasury Updates Check
Policy
Formation of Alliance of
Independent Money Services Business Centers of Georgia, Inc.

"In the News"

Check Fraud
Georgia Alliance for
Independent Money Service Centers of Georgia, Inc. to Form

Notice of Final Rulemaking

TREASURY UPDATES CHECK POLICY
The U.S. Treasury Department recently clarified its policy for dealing with check reclamations for disaster relief and government benefits.
Guidance in Verifying the Identity of Individuals Presenting Treasury Benefit and Disaster Assistance Checks for Deposit or for Cash

Permissibility of
Advertisements, Records, or Correspondence in a Language other than English
Joel Byers to Fill Corporate
Manager MSBs Position
Action on Applications
During the Previous Quarter

Check Reclamations

Notice: Expired Licenses
and Registrations

The Treasury policy remains in effect for 60 days from the date of the notice. A depository institution that verifies the identity of an individual seeking to cash a Treasury benefit or assistance check by calling a telephone number provided

Check Seller and Money
Transmitter License Renewal Period

by the issuing agency for this purpose will not be liable in a reclamation action based on a forged endorsement. In

Reminder: MTRA 2005
Annual Meeting and

addition, a depository institution will not be liable for

Conference

cashing a Treasury benefit or assistance check bearing a

forged endorsement if the depository institution has used

prudent efforts to verify the identity of the individual

cashing the check. Prudent efforts depend upon the

circumstances of each situation, but might include one or

more of the following: seeking identification documents

such as a driver's license, military identification or passport; inspecting other documents

such

as

utility

bills,

leases,

or

revolving

charge

bills;

or comparing information provided by the individual to information obtained through electronic searches of consumer reporting agencies, public databases or other sources.
Treasury Check Security Features; Altered Checks
All U.S. Treasury checks have security features. These features, which can help a depository institution decide whether a Treasury check is authentic, can be viewed at: http://www.fms.treas.gov/checkclaims/index.html. The most verifiable security feature on a Treasury check is the Treasury seal, located to the right of the Statue of Liberty, which contains security ink that will run and turn red when moistened. In addition, the amount for which a particular check was issued can be verified by calling the Federal Reserve Bank of Richmond's Treasury check assistance number at 804-697-2605. This number is normally available from 8:00 am 4:30 pm eastern time, Monday through Friday; however, until further notice, operating hours will be extended to 6:30 pm. Most Treasury checks for FEMA disaster assistance are in an amount of $2,000. Depository institutions are encouraged to contact the Treasury check assistance number if an individual is seeking to cash a FEMA check in a larger amount.
FORMATION OF ALLIANCE OF INDEPENDENT MONEY SERVICES BUSINESS CENTERS OF GEORGIA, INC.
Article submitted by Danny Emmett
On June 20, 2005, the Georgia Department of Banking and Finance (DBF) hosted a conference for check cashers licensed in Georgia. This was the first DBF hosted conference of its kind in Georgia. Part of the conference included a break-out session for check cashers to discuss forming and organizing a Georgia check cashers association.
Alliance of Independent Money Services Business Centers of Georgia, Inc. (AIMSBCG) was formed as a result of this conference. Carl Franco of Atlanta Check Cashers, Inc. was elected as President of this non-profit organization. Mr. Franco attests that the future of money services is more than just check cashing and that AIMSBCG will assist the DBF in continuing education, information and compliance. The purpose and objectives for which the Association has been formed are:
A. To unite the professional check cashers of Georgia in a common organization, for the purpose of providing programs of mutual benefit, which will foster the business and interest of the members of the Association, and provide better service to customers and to the community.
B. To receive and disseminate to the members accurate and reliable information regarding matters relating to the check cashing industry.
C. To promote a more open and friendly interaction between its members and the public.
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D. To promote and maintain standards of fair and efficient practice in the check cashing industry with a view to promoting the common welfare of its members.
E. To enhance the image of the check cashing industry by establishing recognition and awareness by the public of the professional services being rendered by the industry.
F. To advance and promote the general public utilization of check cashers by means of research, public relations, advertising and similar activities.
G. To provide order, direction, and leadership for the check cashing industry.
H. To do and perform any other and further acts which may be proper and lawful for the accomplishments of the foregoing purposes or any of them.
I. To become the voice and advocate of the money services business and check cashing business in Georgia.
AIMSBCG will be mailing an invitation to join the association this month and will produce a monthly newsletter. Memberships are available for both vendors who want to support this association and for money services stores. For more information about this association contact Danny Emmett at (404) 219-2935 or via e-mail at dannyemmett@superfinancial.net.
CHECK FRAUD
Check fraud is one of the largest challenges facing businesses and financial institutions today. Affordable software and hardware and other advancements in computer technology are making it easier to duplicate checks or fabricate new ones. A significant amount of check fraud is due to counterfeiting through desktop publishing software, color copiers, and high-quality printers. In addition, chemical alteration is used whereby the criminal removes some or all of the information and manipulates it to their benefit.
Below are some signs which may indicate a bad check, particularly where multiple signs are present:
Inconsistent or amateurish print and layout (font differences). A check printed on poor quality paper that feels slippery. Check colors that smear when rubbed with a moist finger. (This suggests they were prepared on a color copier). A personal check that has no perforated edge. A check on which information shows indications of having been altered, eradicated, or erased.
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A check drawn on a new account that has no (or a low) sequence number or a high dollar amount. A check on which the name and address of the drawee financial institution is typed, rather than printed, or that includes spelling errors. The customer's name and address is missing. Numerical and written amounts do not match. The MICR numbers are missing. (NOTE: Magnetic Ink Character Recognition or MICR refers to the numbers at the bottom left-hand corner of a check, printed in magnetic ink that can be read by machines. The numbers usually are encoded with the routing number of the financial institution, the account number, and the check number. The dollar amount is added to the MICR line during check processing. The nine-digit number between the colon brackets on the bottom of a check is the routing number of the bank on which the check is drawn. The first two digits indicate in which of the 12 Federal Reserve Districts the bank is located. It is important that these digits be compared to the location of the bank because a forger will sometimes change the routing number on the check to an incorrect Federal Reserve Bank to buy more time.) The MICR encoding at the bottom of the check does not match the check number. The MICR coding does not match the bank district and the routing symbol in the upper right-hand corner of the check. The word "VOID" or "non-negotiable" appears across the check. The check lacks an authorized signature. A signature that is irregular-looking or shows gaps in odd spots. Corporate or government checks which show numbers that do not match in print style or otherwise suggest that the amount may have been increased. Checks presented at busy times by belligerent or distracting customers who try to bypass procedures.
Some Things to Consider
Authenticate the check (1) call the issuing bank to verify the account, (2) call the issuer to verify that the check is real, use phone numbers from an independent source (not off the check), i.e., Internet, phone book, etc.
If you are cashing a United State Post Office Money Order, go to http://www.usps.com/missingmoneyorders/security.htm to read about the security features of an authentic USPO money order. You can also download a notice/brochure that identifies the USPO money order security features go to http://www.usps.com/postalinspectors/not299.pdf.
Train your tellers/customer service representatives/cashiers to identify potential fraud. When fraud occurs, use your experiences as a training tool.
Consider investing in UV counterfeit detection scanners. These devices read hidden UV security features built into currency, checks, travelers checks, money orders, credit cards, drivers licenses, passports and government checks.
Consider any available fraud software/databases that may help to deter losses.
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Regulatory Matters and Important Information
NOTICE OF FINAL RULEMAKING
Pursuant to the authority granted to it in the Georgia Administrative Procedures Act, Official Code of Georgia Annotated (O.C.G.A.) Chapter 5013 and by authority of O.C.G.A. 7-1-61; O.C.G.A. 7-1-663; O.C.G.A. 7-11012, and other cited statutes, the Department adopted final rules on August 15, 2005. These rules were effective on September 5, 2005.
A synopsis and purpose precedes each proposed rule, with background information and explanation where applicable.
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.
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 final rules can be found on our website in the Special Bulletins section at: http://www.gadbf.org/bulletins.html
PERMISSIBILITY OF ADVERTISEMENTS, RECORDS, OR CORRESPONDENCE IN A LANGUAGE OTHER THAN ENGLISH
Questions have been raised regarding the permissibility of MSBs to utilize and make available documents, advertisements, correspondence, policies, etc. in a language other than English. There is no prohibition against a business having its advertisements, antimoney laundering program, or other documents written in a language other than English, particularly when those documents are to be utilized internally for training purposes or are
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distributed to its customers who are primarily non-English speaking. However, please note that all records, policies and procedures should also be available in an accurate English translation since they are subject to examination/review by the Department, the Financial Crimes Enforcement Network, the Internal Revenue Service, or appropriate law enforcement and other regulatory officials. Please ensure that all correspondence with the Department, whether by mail, fax or e-mail is in English.
JOEL BYERS TO FILL CORPORATE MANAGER - MONEY SERVICE BUSINESSES (MSBs) POSITION
On October 17, 2005, Joel Byers will join the Corporate Division as the new Corporate Manager for MSBs. Joel began his career with the Department of Banking and Finance in 1986 as a bank examiner in the Department's Northeast District Office. After serving several years as a bank and credit union examiner, Joel joined the Mortgage Division in 1995 and subsequently attained Senior Financial Examiner status. Joel is also a Certified Fraud Examiner (CFE). His financial institution and mortgage experience will be invaluable in his new position in Corporate. In his position as Corporate Manager-MSBs, Joel will have primary responsibility for managing the MSB application process and the risk-based supervision and examination program.
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Actions on Applications During the Previous Quarter

APPROVED CHECK CASHERS
APPLICANT NAME
Guru Jalaram Bapa Mata Hrshiddhy Bhavani, Inc. Sunshine Express Services, Inc. Young Kim Enterprises, Inc. CheckMax of Georgia, Inc. A&S Check Cashing, LLC Clark-Dodge Enterprises, Inc. Super Check Cashing, Inc. AAAIR, Inc. Amal USA, Inc. Gaeryong, Inc. Shop Services, Inc. Choi, Jae-Wang Gleason, Kyong C. Harrell, Cleon F. R&S United, Inc. Alpha Payment Solutions, Inc. Diamond Gas and Food Mart, LLC Shashikant, Inc. Kash Group, Inc. Parra, Kristina Attics Self Storage of Newnan, Inc. Bhawani Krupa, Inc. Dos Amigos Check Cashing & Grocery, Inc. Enterprise 2850, LLC Golden Bottle Shop, Inc. Young, Marshall C. Store Management, Inc. Parikh, Kanaiyalal R. Reyes, Inc. Tabo's C. Store, Inc. First Class Mart, LLC Veatch Foods, Inc. Shri Shiv Shakti, Inc. Krupa of Rome, Inc. Bradberry, Jimmy L. Han, Kwi Suk Akshar Group, Inc. Mata, Inc. McFarland Foods, Inc. Reeya & Damini Food Mart, Inc. Standard Motor Enterprises, Inc.

DBA
Seven Star Discount Petro Sunshine Express Services Oasis Package Store CheckMax of Georgia A&S Check Cashing Lighthouse Liquors Super Check Cashing BP Food Mart Amal USA Get It To Go BP Food Mart E-Z Check Cash Yeung Grocery S&H Check Cashing Prime Communications Alpha Payment Solutions BP Gas Station G & S Shop Shell Food Mart Liberty Services Attics Self Storage Shop Rite Dos Amigos Check Cashing Busy Bee Golden Bottle Shop Young Super Foods Shell Food Mart Mail Fax Shipping Reyes Tabo's Food Mart Thornton Road Food Mart IGA Supermarket Harlem Mini Food Chuck's Corner Pride Package Store Sam's IGA Supermarket Topline Spirits 221 Quick Stop McFarland's IGA Hungry Lion Topline

CITY

ST

Warrenton

GA

Alpharetta

GA

Smyrna

GA

Atlanta

GA

Winder

GA

Albany

GA

Norcross

GA

Atlanta

GA

Decatur

GA

Augusta

GA

Atlanta

GA

Snellville

GA

Augusta

GA

Douglas

GA

Mableton

GA

Conyers

GA

Bethlehem

GA

Winder

GA

Cumming

GA

Athens

GA

Newnan

GA

Americus

GA

Sugar Hill

GA

Atlanta

GA

Winder

GA

Fort Valley

GA

Winder

GA

Stone Mountain GA

Gainesville

GA

Jefferson

GA

Lithia Springs GA

Ellaville

GA

Harlem

GA

Rome

GA

Macon

GA

Augusta

GA

Macon

GA

Hazlehurst

GA

Canton

GA

Baxley

GA

Macon

GA

APPROVAL
7/7/2005 7/7/2005 7/7/2005 7/8/2005 7/14/2005 7/14/2005 7/14/2005 7/15/2005 7/15/2005 7/15/2005 7/15/2005 7/18/2005 7/18/2005 7/18/2005 7/18/2005 7/25/2005 7/25/2005 7/25/2005 7/29/2005 8/1/2005 8/2/2005 8/2/2005 8/2/2005 8/2/2005 8/2/2005 8/5/2005 8/9/2005 8/9/2005 8/9/2005 8/9/2005 8/15/2005 8/15/2005 8/17/2005 8/18/2005 8/19/2005 8/19/2005 8/22/2005 8/22/2005 8/22/2005 8/22/2005 8/22/2005

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APPLICANT NAME
Hernandez, Ilsa Yarbrough's Finance Corporation Smart Financial of Georgia, Inc. Love's Jewelers & Pawn, Inc. Instant Check Cashing, LLC KB Investments, Inc. Discount Check Casher of Georgia, LLC SASR, Inc. Yacob, Inc. Peach Package, Inc. Sung Chol Enterprises, Inc. A-Square Enterprises, Inc. Aum Enterprises, Inc. Brahma Incorporated Ram Krupa, Inc. Reynolds, Jamal Kaleigh Bijal & Vishal, Inc. RD&J, Inc. C First, Inc. NAF Enterprises, Inc. PCA Food Store, Inc.

DBA
Latino Express Yarbrough's Title Pawn The Money Banc Love's Jewelers & Pawn Instant Check Cashing St. Marlowe Convenience Store Discount Check Casher Happy Shop Food Mart Amanuel Check Cashing Peach Package Superstar Wine & Spirits Chevron Food Mart Spaulding Package Store The Alley Cat Package Store Burnt Hickory Grocery South Georgia Check Cashing Sportsman's Package Store Tobacco Outlet Dallas Shell Cash & Carry Grocery Store PCA Food Store

CITY
Carrollton LaGrange Newnan Columbus Woodstock Lawrenceville Savannah Tucker Rex Winder Augusta Conyers Montezuma Douglas Cartersville Albany Macon Dalton Dallas College Park LaGrange

ST APPROVAL

GA

8/23/2005

GA

8/23/2005

GA

8/29/2005

GA

8/30/2005

GA

9/9/2005

GA

9/9/2005

GA

9/13/2005

GA

9/13/2005

GA

9/15/2005

GA

9/20/2005

GA

9/20/2005

GA

9/22/2005

GA

9/23/2005

GA

9/23/2005

GA

9/23/2005

GA

9/23/2005

GA

9/27/2005

GA

9/27/2005

GA

9/30/2005

GA

9/30/2005

GA

9/30/2005

APPROVED MONEY TRANSMITTERS

APPLICANT NAME Equimoney Transfer Services, Inc.

DBA Equimoney Transfer

CITY

ST

Marietta GA

APPROVAL 9/28/2005

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Important Dates to Remember
NOTICE: EXPIRED LICENSES AND REGISTRATIONS
If you previously held a Georgia check cashing license or registration and did not renew prior to the October 1st deadline, your license or registration has expired; therefore, you are no longer authorized to cash checks for a fee in Georgia.
It is a criminal violation, subject to monetary fines and/or imprisonment (O.C.G.A. Section 7-1-708), to cash checks for a fee in Georgia without being properly licensed or exempted by the Department. If you choose to continue cashing checks in Georgia for a fee, you must comply with Chapter 7-1, Article 4A of the Official Code of Georgia, Annotated.
If we do not receive your renewal application and/or additional information by October 31, 2005, you will have to reapply for your license or registration and will need to download the application from the Internet at www.gadbf.org/other_forms.html.
CHECK SELLER AND MONEY TRANSMITTER LICENSE RENEWAL PERIOD
The Department recently mailed renewal forms for licensed check sellers and money transmitters. The annual renewal license fee is $2,000 for check sellers and $1,000 for money transmitters. Annual renewal forms and fees are due by November 1, 2005. An annual license renewal fee not received prior to December 1 will be penalized a late fee of $300 and cannot be assured of issuance or renewal prior to January 1.
REMINDER: 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/. Go to https://www332.ssldomain.com/mtraweb/amc/registration.cfm to register online.
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Corporate Division Contact Information

NAME
Carol Webb, Director for Corporate Affairs/Strategic Initiatives
Joel Byers, Corporate Manager - Money Service Businesses (MSBs)
Tervenia Mitchiner, Assistant Financial Examiner
Susan Nelson, Applications Analyst

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

PHONE# 770-986-1386

byers@dbf.state.ga.us

770-986-1656

tervenia@dbf.state.ga.us nelson@dbf.state.ga.us

770-986-1639 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.
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