MSB newsletter, Issue 1 (Jan.-Mar. 2008)

January to March 2008, Volume 4, Issue #1

(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 dbfmort@dbf.state.ga.us.)

In This Issue:

REGULATORY MATTERS
Changes in the Regulations BSA FINES

With the changes in the regulations made in September, fines were added for failure by licensees and registrants to comply with the Bank Secrecy Act ("BSA"). Note that the changes affect both check sellers /money transmitters and check cashing entities, and the assessments for failure to meet the BSA requirements can be substantial, as the fine is assessed for EACH INSTANCE of non-compliance. It is important that licensees know and understand the requirements of the Act. These can be found at www.msb.gov.

80-3-1-.07

Administrative Fines and Penalties.

(1) Check Cashers.

(o) Bank Secrecy Act. If the Department, in the course of an

examination or investigation, finds that a licensee or registrant has failed

to comply with the requirements referred to in Rule 80-3-1-.03(3) entitled

"Money Service Businesses Compliance with Federal Requirements," such

licensee or registrant shall be subject to a fine of one thousand dollars

($1,000) for each instance of non-compliance.

(2) Check Sellers and Money Transmitters.
(m) Bank Secrecy Act. If the Department, in the course of an examination or investigation, finds that a licensee or registrant has failed to comply with the requirements referred to in Rule 80-3-1-.03(3) entitled "Money Service Businesses Compliance with Federal Requirements," such licensee or registrant shall be subject to a fine of one thousand dollars ($1,000) for each instance of non-compliance.

MSB-BSA Fines

1

Exam Considerations BSA/AML

1

Semi-annual Reporting 2

FinCEN Updates

3

Customer Service Stars

4

2008 State Holidays

4

Action on Applications During the Previous Quarter/Closed Licensees

5 to 9

Department Contact Information

9

Examination Considerations BSA Compliance and Fines
As noted above, Money Service Businesses in Georgia face fines of $1,000 for each instance of failing to comply with Bank Secrecy Act (BSA) requirements due to changes in Department regulations implemented in July of last year.
Many license holders have already implemented an anti-money laundering (AML) program which goes a long way towards helping Money Service Businesses (MSB) avoid these fines, but failing to adhere to the program remains a problem.

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The AML program must have four elements: 1. Policies and procedures designed to prevent money laundering; 2. A named compliance officer; 3. Provisions for an employee training program; and 4. A periodic independent review.
The last two requirements are where most license holders run into compliance problems with Bank Secrecy Act requirements for MSBs.
During an examination, documentation will be requested for both the training program and independent review. It's important for the compliance officer to maintain this information for review, since without it the examiner has no choice but to cite a violation, and that can result in a fine.
To avoid this, first review your AML policies and procedures. Make a note of how often those procedures indicate training will be conducted and the frequency of the independent review, and put those functions on the calendar. On these designated dates, be certain to hold a training session and have all appropriate employees sign a sheet indicating they attended the session, and these should be maintained in the employee's file.
Following an independent review by an appropriate person, have that person document the results and retain this documentation for future reference. If deficiencies were noted in the review it is also important for the compliance officer to follow up with the implementation of corrective measures, and those should also be documented.
Additional BSA requirements include: Registration with FinCEN; Reporting suspicious activity involving more than $2,000; Reporting cash transactions greater than $10,000; Recording certain information regarding money orders/transfers greater than $3,000.
License holders should review these requirements and the procedures they have in place to ensure compliance, since failing comply with these may result in a violation and fine. For more information about federal laws or rules and regulations visit: www.msb.gov, or the Department's website at http://dbf.georgia.gov.
Semi-Annual Reporting: Check Sellers and Money Transmitters
Reporting for the period of July 1, 2007 to December 31, 2007 began January 2, 2008, Note the NEW screen you will see on the web for on-line reporting. Direct links are available from the Department's MSB website: http://dbf.georgia.gov/msbforms Or you may use the links noted for each type. The websites are: https://bkgfin.dbf.state.ga.us/MTSemiAnnualReport.html for Money Transmitters, and: https://bkgfin.dbf.state.ga.us/CSSemiAnnualReport.html for Check Sellers.
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FINCEN UPDATES
FINCEN UPDATES MSB REGISTRATION LIST (Bank Secrecy Act Regulations 31 CFR 103.41.
et seq.) In accordance with FinCEN Guidance (FIN-2006-G006) on Registration and De-Registration of Money Services Businesses (February 3, 2006), FinCEN will periodically omit from the list any persons who have not renewed their registrations by their renewal deadlines. The most recent list is as of November 19, 2007.
FinCEN is coordinating outreach activities with the IRS Stakeholder Liaison staff who will contact those MSBs that failed to renew their registrations to determine if this was an inadvertent error or whether the MSB no longer conducts services that would require the entity to register.
A letter mailed to those MSBs which failed to renew their registration, indicated the following: "...'we will omit from the posted Money Services Business Registration List any persons who do not renew their registrations by the renewal deadlines, and will deem that business to be unregistered as a money services business. ... The consequences for failing to register or renew registration as a money services business can include civil and criminal penalties for violation of the Bank Secrecy Act and implementing regulations (see 31 CFR 103.41(e)).' We recently updated the Money Services Business Registration List and your company is not included. Therefore, if your business continues to provide money services for which you are required to register, you should renew your registration immediately."
As noted, failure to register can result in penalties at the federal level, as well as fines at the state level for failure to adhere to the provisions of the Bank Secrecy Act as noted in this newsletter. Companies and those providing financial services to MSBs should check the current registration list at: http://www.msb.gov/guidance/msbstateselector.php .
The listing will assist in determining that the proper registration has been made. The Excel list is available by state, or the entire list can be downloaded. Each list reflects information exactly as provided by the filers and comprises FinCEN Registrant names, "doing business as"

names, addresses, MSB services offered, and states in which services are offered. Each is arranged alphabetically first, by the selected state, then, by each city within the selected state.

Businesses which are not on the list but which continue to provide money services for which registration is required should renew their registrations immediately. To obtain a new Registration of Money Services Business form (FinCEN Form 107), please go to the "Forms" section of www.msb.gov. Print and complete Form 107 to renew your registration (by checking Box 1b: Renewal), and mail your completed Form 107 to the IRS Detroit Computing Center, Attn: Money Services Business Registration, P.O. Box 33116, Detroit, MI 48232-0116.

If a business no longer conducts activities that require registration with FinCEN as a money services business, no action needs to be taken should you be contacted by FinCEN.

FINCEN PUBLICATIONS
The FinCEN publication "Money Laundering Prevention-An MSB Guide" is available in several languages. Quick Reference Guides on Bank Secrecy Act requirements and reporting suspicious activity are also available in these languages. The products can be ordered from the internet at: http://www.msb.gov/materials/index.html.
Direct links are also available from the Department's website at http://dbf.georgia.gov/dbfmsbs for the specific language for the "Money Laundering Prevention-An MSB Guide".



Spanish



Arabic



Chinese



Vietnamese



Korean



Farsi



Russian

The IRS also has valuable information for MSB companies on the IRS internet site at BSA Compliance - IRS. Scroll down the page for specific information for MSB companies. One important publication provides information on common errors in SAR reports. Please see the publication Suspicious Activity Reporting Errors.

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CUSTOMER SERVICE GEORGIA
Governor Sonny Perdue's campaign is to put new emphasis on customer service, emphasizing easier access to government services, faster processes so customers can get business done quickly, and friendlier service in a customer-focused, goaloriented culture. It is the Department's goal to provide excellent customer service, meeting and exceeding the expectations of our customers. Along those lines, we would like to recognize the following individual for going above and beyond in serving our customers.

Susan Nelson, Applications Analyst (NDFI-Main Office) and the MSB Staff: The Department received comments from a customer stating: "This was the fastest processing time of any state I have ever worked with - means the Department is extraordinarily organized, efficient and professional. Excellent staff receptiveness prior to application. The process was so smooth and professional, I would be happy to be a reference."
CCOONNGGRRAATTUULLAATTIIOONNSS AANNDD GGRREEAATT JJOOBB!!!!
The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State. The Department also has regulatory and/or licensing authority over mortgage brokers, lenders, and processors, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia.
Our MISSION is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision.
Our VISION is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented.
2008 State Holidays In accordance with O.C.G.A. 1-4-1, Governor Sonny Perdue proclaimed the following
dates as public and legal holidays for the year 2008.

Holiday
New Year's Day 2008
Robert E. Lee's Birthday Martin Luther King Jr.'s Birthday Washington's Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day Christmas Day

Date or Observed Date
January 1st - Tuesday
January 19th - Saturday Observed on Friday, November 28th
January 21st - Monday February 18th - Monday Observed on Friday, December 26th
April 28th - Monday
May 26th - Monday
July 4th - Friday
September 1st - Monday
October 13th - Monday
November 11th - Tuesday November 27th - Thursday Lee's Birthday will be observed on Friday, November 28thth December 25th - Thursday Washington's Birthday will be observed on Friday, Dec. 26th

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ACTION ON APPLICATIONS DURING THE PREVIOUS QUARTER

APPROVED CHECK CASHERS (License/Registration) Fourth Quarter 2007

Lic # 22907 22908 22909 22910 22911 22917 22919 22920 22923 22924 22925 22926 22929 22933 22934 22936 22938 22940 22945 22946 22948 22949 22951 22952 22953 22954 22959 22960 22962 22973 22978 22979 22983 22984 22985 22996 22999 23000 23001 23010

Company Name United Brothers International, Inc. S. S. Paek Enterprises, Inc. MSR Enterprises, LLC Sanket Corporation Accent World, Inc. Felton's Red & White, Inc. Golakia Corporation Las Palomas, Inc. Krishan Handa Bronnor, Bernard Mama Enterprises, Inc. AMBI, LLC Quik Thrift Food Stores, Inc. Butt, Muhammad H. Campbell, Sandra K Chi Investments, Inc. Sankets, Inc. Jai Mataji, LLC Jalasai, LLC A-1 Food Mart, Inc. Alveez International, Inc. Mee Lee, Inc. Friends Mart, Inc. FHR Enterprises, Inc. Microfinance International Corporation Kiem, Inc. Hanmar Inc. Southern Family Markets, LLC Bugh, Robert S. Jr. Danneman's Supermarket, Inc. Lovejoy Food Mart, Inc. Quick Check Cashing, Inc. Whitesburg Investments, Inc. Hamani Enterprises, Inc. DYYU, Inc. Sunnyshine 7 Enterprise LLC Bawa, Shamash K. Bawa, Shamash K. Maeda, Yadi M. Mortuza, Inc.

DBA Name Super Food Mart Overpass Package Peaches P&P Food Store Accent World Felton's Red & White, Inc. Laney Supermarket Las Palomas Marietta Conference Center Gift Shop Unique II Auto Detail Exxon at Papermill Lil' Pantry #6 Quik Thrift/Super Foods Sunny Food Mart Islands Pawn Beverage Center Discount Package Quick Mart #17 Country Store Tobacco Outlet Citgo Food Mart Bond's BP 556 Package Store JB's Quick Stop Quick Stop Shop 3 Alante Financial The Winery Gas and Go Food Store SFM and Piggly Wiggly Bugh's Danneman's Supermarket BP Food Mart Quick Shop Circle W Shoppette Short N Easy DYYU
Community Plaza II Friendly Foods San Marcos Market BP Food Mart

City Dublin Augusta Jesup Valdosta Griffin Marshallville Augusta Gainesville Marietta Macon Lawrenceville Tifton Marietta Brookfield Gainesville Cumming Cordele Cedartown Dalton Cumming Covington Atlanta Douglasville Canton Washington Albany Cartersville Keene Columbus Atlanta Lovejoy Sandy Springs Whitesburg Cartersville Forsyth Sandy Springs Fort Valley Marshallville Calhoun Atlanta

Type L R R R L R R L R R R R L R R R R R L L R L R R L L R R R R L L R R R L R R R L

Approved 10/02/07 10/01/07 10/02/07 10/02/07 10/03/07 10/09/07 10/10/07 10/09/07 10/10/07 10/10/07 10/10/07 10/11/07 10/11/07 10/12/07 10/11/07 10/15/07 10/15/07 10/15/07 10/15/07 10/17/07 10/16/07 10/18/07 10/18/07 10/18/07 10/19/07 11/13/07 10/24/07 10/24/07 10/24/07 10/24/07 10/26/07 10/26/07 11/06/07 12/03/07 10/31/07 11/08/07 11/09/07 11/09/07 11/13/07 11/15/07

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Lic # 23018 23020 23022 23026 23027 23029 23031 23032 23038 23048 23049 23050 23057 23058 23060 23061 23067 23073 23075 23076

Company Name J. E. Lee, Inc. Dalomais, Inc. Sun, Inc. U N I Food Mart, Inc. CH & K Investment, LLC VK Petro Products, Inc. LBN Enterprises, LLC Gulzar Group, Inc. Dhanveer, Inc. Heta, Inc. Pak International, Inc. Jin Ha, Inc. Katcon, Inc. Dheeraj, Inc. Kush Trading, Inc. Cash All Time, Inc. Simren, Inc. SW Kim, Inc. A&A Business, Inc. Aaron, Roy Thomas

R=Registrant L=Full Service

DBA Name 124 Package Musica & Checks Cashed El Amigo East Point Package Store Amerimart Five Points Variety 7 Texaco Food Mart LBN Enterprises Chevron Food Mart Friendly Food Citgo Food Mart Dee's Package Store Main Street Market Downtown Beverage First Midway Package Odum General Store Cash All Time Cobblestone BP Hardy's Supermarket Quick Pick South 41 Package

City Lithonia Cumming East Point Cartersville Atlanta Lithonia College Park Union City Warner Robins Acworth Decatur McIntyre Lavonia Macon Odum Carrollton Fayetteville Atlanta Canton Calhoun

Type L L R R L L L L L L R L R L R L R L R R Total

Approved 11/19/07 11/19/07 11/21/07 11/21/07 11/26/07 11/26/07 11/28/07 11/30/07 12/03/07 12/05/07 12/05/07 12/05/07 12/11/07 12/11/07 12/11/07 12/11/07 12/12/07 12/17/07 12/18/07 12/19/07 60

EXPIRED/CLOSED CHECK CASHERS (License/Registration)

Lic # 9101 9274 9286 9298 9504 12326 13271 15344 15573 15676 16756 17283 17529 18230 18231 18269

Company Name Steve's Check Casher, Inc. Cash Depot, Inc. Myung S. Chung Dennis B. Lee/DBMC, Inc. Susan Park Richard Gowen's, Inc. R A Carter Inc ES Group, Inc. Payday, Inc. Pyon, Eunice J. Merchant Financial, Inc. SLC Corporation Trebor Holdings, LLC McCook & Son Package, Inc. Silly Willy's, Inc. HP Package, Inc.

City Columbus Atlanta College Park Atlanta Atlanta Garden City Macon Decatur Atlanta Atlanta Atlanta Atlanta Alpharetta Macon Macon Forsyth
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Date Closed 09/30/07 09/30/07 11/05/07 11/26/07 09/30/07 10/24/07 09/30/07 09/30/07 09/30/07 10/15/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07

Type LD LD LD LD RD LD LD RD LD LD LD LD LD LD LD LD

Lic # 18336 18515 19217 19607 19677 19710 19727 19801 20061 20251 20253 20304 20425 20426 20518 20569 20666 20667 20710 20718 20751 20792 20905 20920 20933 20956 21038 21069 21129 21163 21269 21292 21316 21342 21354 21356 21480 21481 21499 21555 21604 21608 21621 21677 21716 21772

Company Name Naina Enterprises, Inc. Assad, John Mo Money Fast, Inc. Weathers, Nick W., Jr. Hayu & Moe, Inc. Chez Fox, LLC Ruiz, Antonio Cardosa Poul Enterprise, Inc. Chong, Yon S. Royal C. Store, Inc. Amaan Enterprises, Inc. N.K Enterprise, Inc. Goldmine Check Cashing, Inc. Solis, Alemi Spring Spark, Inc. Pronto Cash of Georgia, Inc. Bhawani Krupa, Inc. Attics Self Storage of Newnan, Inc. Hernandez, Ilsa Mata, Inc. Instant Check Cashing, LLC RD&J, Inc. Nina Group, Inc. The Right Stuff Food Stores, Inc. Jessica & Kimberly, Inc. Club Holdings, Inc. Global Communications Network, Inc. Woo Check Cashing, Inc. SRN Enterprises, Inc. JasDiv, Inc. Boyd, Naomi P. Bismillah Investments, Inc. A&W Food Mart, Inc. Malsch, Soon O. Ranv, Inc. Henderson, Elena Brothers Food Store Shim, In Sub SAR 2, Inc. Lee, Yon J. JMC Food, Inc. Krishna & Urmi, Inc. EZ Check Cashing LLC The Flower Hut, Inc. Knight, Sun H. Zanesh, LLC

City Morrow Macon Rome East Point College Park Lawrenceville Dalton Lawrenceville Duluth Atlanta Loganville Loganville Augusta Chatsworth East Point Marietta Americus Newnan Carrollton Hazlehurst Woodstock Dalton Atlanta Atlanta Atlanta Millen Moultrie Norcross Atlanta LaGrange Lithia Springs Macon Fayetteville Augusta Atlanta Calhoun Omega Decatur Atlanta Lawrenceville Conyers Smyrna Lawrenceville Douglas Augusta Willacoochee

Date Closed 09/30/07 09/30/07 10/10/07 09/21/07 09/30/07 09/28/07 09/30/07 09/13/07 12/17/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/27/07 09/30/07 11/09/07 09/30/07 09/30/07 09/30/07 10/01/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/13/07 09/30/07 09/11/07 09/30/07 09/21/07 09/30/07 09/10/07 09/30/07

Type LD RD LD RD LD LD LD LD LD LD RD RD LD RD RD LD RD RD LD RD LD LD RD RD RD RD LD LD RD RD RD LD RD RD LD RD RD RD LD LD LD LD LD RD RD RD

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Lic # 21773 21788 21820 21946 22024 22026 22106 22125 22153 22181 22192 22203 22218 22249 22278 22279 22291 22295 22296 22315 22356 22429 22444 22540 22541 22547 22578 22581 22585 22618 23072

Company Name New America, Inc. Jai Ambe Foods, Inc. MDA Services, LLC Green & Green Enterprises, LLC W.W.K. Enterprises, Inc. Sule, Inc. Lopez, Alberto Srujal, Inc. Pena, Robert E. Zain G, Inc. Feria Express, Inc. Williamson's Beverage Center, Inc. Estrada, Jose L. TDIR, Inc. RJ's Store, Inc. Aslam, Muhammad Holbrook, Pok Ye Meghna, Inc. Grand Group, Inc. Thaker, Inc. Boulevard Convenience, Inc. Math Check Cashing LLC Pantoja, Martin Kwon's Enterprise, Inc. Ramiz Business, Inc. Nobel Business, Inc. Perpetual Enterprises, Inc. Choudary, Khawar I. Navisun International, LLC Su, Suk B. UMA Corporation

City Rincon McDonough Lilburn Athens Atlanta Garden City Palmetto Cedartown Lawrenceville Griffin Marietta Vidalia Calhoun Atlanta Lake Park Covington Macon Lawrenceville Lawrenceville Tucker Atlanta College Park Ellijay Chamblee Jonesboro Jonesboro Lithonia Murrayville Grifin Atlanta Valdosta

Date Closed 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/17/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 09/13/07 09/13/07 09/30/07 09/30/07 09/30/07 09/30/07 09/30/07 11/19/07 09/30/07 09/30/07 10/19/07 01/03/08 Total

Type LD LD LD LD LD LD LD RD RD RD LD LD RD RD RD RD LD RD RD LD LD LD RD LD RD RD LD RD RD RD RD 93

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APPROVED/EXPIRED CHECK SELLERS/ MONEY TRANSMITTERS

Lic #
22913 22935 22998 23047 23056

Company Name Approved Money Transmitters CambioReal Incorporated Microfinance International Corporation Braz Transfers, Inc. nFinanSe Payments, Inc. Wall Street Finance, LLC

Closed Money Transmitters

18780 New York Bay Remittance Corp.

19834 Alamin, Semira

20377 20382 22583

Global Financial Exchange, LLC Western Club, LLC Amacif, Inc.

DBA Name
Alante Financial
New York Bay Remittance Dalmar's International Global Financial Exchange Western Club

Approved 11/05/07 10/22/07 11/19/07 12/17/07 12/11/07

Closed

City

ST

Newark

DE

Washington

DC

Somerville

MA

Tampa

FL

Jackson Heights NY

Total 5

11/13/07 New York

NY

11/19/07 Clarkston

GA

12/17/07 12/31/07 12/31/07

Chamblee East Point Decatur

GA GA GA Total 5

2008 CHECK SELLER/MONEY TRANSMITTER RENEWALS
The Calendar year 2008 CHECK SELLER/MONEY TRANSMITTER renewal process was a big success. We appreciate your assistance in making the process flow smoothly. With few exceptions, the on-line process went well, and we appreciate the timely manner in which supplemental materials were submitted.

Department Contact Information

NAME Melinda Kinard, Director of Money Service Businesses and Mortgage Licensing Joel Byers, Supervisory Manager - Money Service Businesses (MSBs) Peter Lisowski, Financial Examiner
Teresa Koeppel, Administrative Examiner
Susan Nelson, Applications Analyst

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

PHONE# 770-986-1649

byers@dbf.state.ga.us

770-986-1656

lisowski@dbf.state.ga.us tkoeppel@dbf.state.ga.us nelson@dbf.state.ga.us

770-986-1315 770-986-1639 770-986-1652

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Department Contact Information (Continued)
Mailing Address: Department of Banking and Finance 2990 Brandywine Road, Suite 200 Atlanta, GA 30341-5565
Website: http://dbf.georgia.gov Phone & Fax Numbers: Phone: (770) 986-1633 or
Toll Free: (888) 986-1633 Fax: (770) 986-1655 or (770) 986-1029
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 included in the request, that person can then more efficiently provide you an answer. The main Division e-mail address is dbfmort@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:// dbf.georgia.gov 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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