MSB newsletter, Issue 3 (July-Sept. 2008)

July to September 2008, Volume 5, Issue #3

(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 Georgia Regulations
Proposed Rule Changes
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. 7-1-663; O.C.G.A. 7-1-1012, and other cited statutes, the Georgia Department of Banking and Finance hereby gives notice of its intent to adopt new and amended rules.

REGULATORY MATTERS

Proposed DBF Regulations

1

Semi-Annual Reporting

2

Federal Regulatory Matters

2

FinCEN Registration Clarification

3

A synopsis and purpose precedes each proposed rule change, with background information and explanation where applicable. Comments to the Department of Banking and Finance must be received by July 31, 2008, no later than 4:30 p.m. Please send all comments to:
Rob Braswell, Commissioner Georgia Department of Banking and Finance
2990 Brandywine Road, Suite 200 Atlanta, GA 30341-5565
Fax: (770) 986-1654 or 1655
The Department shall 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 August 4, 2008, at the offices of the Department of Banking and Finance at Suite 200, 2990 Brandywine Road, Atlanta, Georgia 30341. Notice and a copy of the final rules adopted will be e-mailed to persons who have made a special request, and will be made available on our website at http://dbf.georgia.gov/. Other interested parties may receive a copy of the final rule by contacting the Department at (770) 986-1633, after August 4, 2008.

OTHER NEWS

Upcoming Speaking

Engagements and

3

Holidays

Action on Applications During the Previous Quarter/Closed Licensees

4 to 6

Department Contact Information

7

Of significant interest to Money Service Businesses in Georgia are the following provisions: 80-3-1-.02 Check Cashers. A change has been added to require registrants to post their registration in public view. Additionally, a form number change has been made. 80-3-1-.07 Administrative Fines and Penalties. A fine has been added for licensees and registrants that fail to post their license or registration as required. The fine is $500 for each instance of non-compliance. 80-5-1-.02 License, Registration and Supervision Fees for Check Cashers and Sellers, Money Transmitters, Representative Offices and Mortgage Lenders and Brokers; Due Dates. A non-refundable application investigation fee has been included in the license fees for check sellers and money transmitters. This application fee is consistent with application investigation fees paid by all other licensees.

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Semi-Annual Reporting
It is now time for semi-annual reporting for Money Transmitters and Sellers of Checks. The reports must be made on-line by the licensee between July 1, 2008 and August 31, 2008. To facilitate access to the system, please do NOT wait until the second half of August to complete this report. Due to a law change effective July 1, 2007, reports are only required twice a year; please refer to O.C.G.A. 7-1-686(b). The licensee must also provide the required report of agents/locations and average daily balances of checks outstanding as required by O.C.G.A 7-1-686(b). If you are also a Money Transmitter, you must report the outstanding orders to transmit not yet paid. (Please refer to the formula on the web site.)
Reporting of Agents
A reminder to all money transmitters and check sellers when you enter agents into the system during the semi-annual reporting periods, ALL agents have to have their own UNIQUE, separate, identifying number. NO SHARING OF AGENT NUMBERS IS ALLOWED, and possible fines could be assessed for failure to assign unique numbers for recordkeeping purposes.

International Transfer Reporting

Money transmission information reported must include the information noted below. Please remember that when reporting,

this additional information will be required.



Number of transactions and total dollar amounts of money transmitted from all Georgia locations during the reporting

period.



A breakdown of transmissions and dollar amounts originated in Georgia per nation transmitted to during the reporting

period.



The range of fees charged for money transmission.

Currently the reporting is underway. Direct links are available from the Department's MSB website:

http://dbf.georgia.gov/msbforms

FEDERAL REGULATORY ISSUES
June 24, 2008 - HR 4049: Money Service Business Act of 2007
HR 4049: Money Service Business Act of 2007 passed out of the House of Representative Financial Services Committee on June 24 and now awaits a vote by the full House. The bill amends amend section 5318 of title 31 of the United States Code.
The purpose of the legislation is to eliminate regulatory burdens imposed on insured depository institutions and money services businesses and enhance the availability of transaction accounts at depository institutions for such business, and for other purposes. Specifically the changes provide the following:
Declares that, if such institutions have on file specified mandatory self-certifications submitted by a money transmitting business for which the institutions maintain an account, the institutions have no obligation to review the compliance of the money transmitting business with federal anti-money laundering requirements.

Sets forth civil and criminal penalties for violations of this Act without regard to whether such violations were willful.
Shields an institution from increased liability for the non- compliance of a money transmitting business with federal anti-money laundering requirements to the extent that the institution itself is in compliance with them.
Prescribes requirements for a self-certification by a money transmitting business that it is in compliance with federal anti-money laundering requirements.
This bill will hopefully enhance the availability of banking services for MSBs if passed. You may want to track the status
of the bill on the internet. Search on HR 4049: Money Service
Business Act of 2007.
CHECK CASHER RENEWALS
License and Registration renewals are now in process on-line. The deadline for renewing is August 1, with late fees assessed beginning August 2. The system is available through September 30, at which time the FY2008 Licenses expire. Reinstatement of the license is required after September 30.

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FinCEN Registration

Examinations have continued to determine that many MSBs are not clear on when to register, re-register, or renew with FinCEN. Certain Money Services Businesses ("MSBs") are required to register with FinCEN as well as renew their registrations every two calendar years. In their continuing effort to make Bank Secrecy Act ("BSA") compliance more efficient and effective, FinCEN offers the MSB Registration Renewal Calculator as a means to determine informally the registration renewal dates of an MSB on their website. This can be found at: http://www.msb.gov/guidance/msb_calculator.php. Also note the information below which defines the distinctions between registration, re-registration, and renewal.

Registration - The form, Registration of Money

Services Business, FinCEN Form 107, must be

completed and signed by the owner or controlling

person.

New companies and MSBs newly

meeting the definition of an MSB requiring

registration must file Form 107 upon commencing

activities covered by the BSA regulations.

Renew - After an MSB completes its initial registration, the form to renew its registration must be filed by December 31 of the second calendar year preceding the 24-month renewal period and is accomplished by filing the Registration of Money Services Business Form, FinCEN Form 107. Thereafter, registration renewal must be filed every 24 months by December 31.

Remember the calculator is available to determine your renewal deadline. 31 CFR 103.41(b)(2)
Re-register - Re-register means to re-file a registration form (with information different from that reported on the form originally filed) during the initial registration period (before the deadline for renewal) because an event triggering reregistration has occurred. An MSB must be reregistered when any of the following events occurs during a registration period:
Change in Ownership or Control under
State Law. There has been a change in ownership or control of the MSB that requires the MSB to be re-registered under State law.
Transfer of Voting Power or Equity
Interest. More than 10 percent of the voting power or equity interest of the MSB has been transferred (except MSBs that must report such transfer to the Securities and Exchange Commission);
Increase in the Number of Agents. The
number of agents of the MSB has increased by more than 50-percent.
To re-register, the registration form, TD F 9022.55, must be completed and filed not later than 180 days after the date the triggering event occurs.
The calendar year in which the triggering event occurs is treated as the first year of a new 2-year registration period. 31 CFR 103.41(b)(4)

E-MAIL UPDATES!!! https://bkgfin.dbf.state.ga.us/MSBUpdate.html
A reminder make certain we have the correct e-mail address for your license or registration so that you will receive all notices and correspondence!

Upcoming Speaking Engagements
Supervisory Manager Joel Byers and Financial Examiner Peter Lisowski will be speaking to the Money Service Businesses of Georgia meeting to be held at the Gwinnett Civic Center at 8:30 on August 7, 2008. Topics they will cover include examinations and compliance issues, as well as the proposed changes to the regulations and other Georgia law issues.

REMAINING 2008 STATE HOLIDAYS the offices of the
Department of Banking & Finance will be closed as noted below.

Holiday Labor Day Columbus Day Veterans' Day
Thanksgiving Day
Christmas Day

Date or Observed Date
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) Second Quarter 2008

Lic #
23304 23305 23306 23307 23308 23310 23311 23314
23318 23322 23323
23324 23329 23330 23331 23332 23333 23334 23339 23340 23347 23348 23349 23350 23352 23354 23358 23365
23373 23375 23379 23380 23381 23382 23391

Company Name
Fiesta Latina Music, LLC Sahajanand, Inc. Balraj, LLC Nilkanth Charitra Corporation Elliott's Marketplace, Inc. Choon Corporation La Popular Enterprises Mata, Inc. Alpha-Link Management Networking, LLC PMG, Inc. Kaival, Inc. County Line One Stop of Roopville, Inc. 2N Investments LLC Drashti 11, Inc. Kwon's Enterprise, Inc. Title Rite, LLC Girocheck Financial, Inc. Mubarak Financial Services, LLC Pyush Patel's Spalding Beverage Co. Rahim & Ram Enterprises, Inc. OHM Enterprises, Inc. Mian Jehangir Bashir M & I Enterprises, LLC AMI Investments, LLC P N P Financial Services, LLC Davar Enterprise, Inc. Estuardo Cabrera BCM, Inc. Friendship Financial Check Cashing, Inc. Harsh Enterprises, Inc. Claude Ricky Heath, Sr. Lally Enterprises, Inc. Inara Foods, Inc. Jubilee Business, Inc. Wellwood Two, LLC

DBA Name
Universal Hair Salon Shell Food Mart Shell Check Cashing Quick Stop #5 Elliott's Marketplace Pak-N-Go El Paraiso Market 221 Quick Stop

City
Douglasville Cumming Atlanta Warner Robins Conyers Augusta Dalton Hazlehurst

Route 20 Citgo Crossroad Shoppette

Atlanta Lawrenceville Roopville

County Line One Stop Shell Food Mart Easy Shop Kwon's Check Cashing
Smyrna Check Cashing Spalding Beverage Shell Quik Stop Citgo Quick Food Mart Quick Stop BP Amoco Food Mart Citgo Food Mart Check Cash Plus Chex Market Frutilandia Lighthouse Liquor

Roopville Doraville Rockmart Chamblee Dahlonega Miami Smyrna Griffin Griffin Smyrna Brookfield Jonesboro Decatur Jonesboro Canton Calhoun Albany

Friendship Financial Check Cashing Wheaton Street Liquors Northside Pawn and Jewelry Quick Shop Quick Stop Circle Food Mart Family Financial Centers

Atlanta Savannah Cartersville Sandy Springs Forest Park Duluth Dalton

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

Approved
04/02/08 04/02/08 04/02/08 04/02/08 04/02/08 04/11/08 04/08/08 04/04/08
04/30/08 04/09/08 04/09/08
04/09/08 04/09/08 04/11/08 04/11/08 04/11/08 04/11/08 04/11/08 04/17/08 04/17/08 04/18/08 04/18/08 04/18/08 04/18/08 04/23/08 04/30/08 04/24/08 04/30/08
05/12/08 05/08/08 05/08/08 05/09/08 05/09/08 05/13/08 05/19/08

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Lic #
23393 23397 23409
23412 23415 23419 23420 23421 23424 23425 23426 23429 23430 23434 23437 23446 23447 23452 23454 23457 23458 23459 23465 23469 23479 23482

Company Name
Clao's Multiservicio, Inc. BI-LO, LLC Shreeji Foods, LLC All Pro Financial Services of Marietta LLC New Koreana Restaurant, Inc. Bluewaters Enterprises, Inc. Shah USA, Inc. Pilot Travel Centers, LLC Arafat Afaneh George Brown Shree Pragji, Inc. Royale Investment, Inc. Ramesh R. Amin Hee Sook Kim Bakkos, LLC Lyons Finance LLC Kemin Enterprises, Inc. Save Way 1, Inc. Pelham Enterprises, Inc. Swami One, Inc. Swift Shops Inc. of Baxley, Inc. Financial Services, LLC Jay-Mahi, Inc. Om Jaden Investments, Inc. My Jaz Incorporated Julia Roman

DBA Name
Clao's Multiservicio BI-LO Vasu Discount Beverage All Pro Financial Services of Marietta D&M Package Store AM PM Shell Food Mart Pilot Travel Center Bill Payment Center National Package Store Country Junction Liberty Chevron J. R. Food Johnson's Supermarket Duluth Highway Shell Lyons Finance Marathon of Perry
Village Pantry Davis Food Mart Dwain's IGA
Uvalda Foods Corner Shop
Costa Del Sol

City
Norcross Greenville Valdosta

Type
R L R

Approved
05/19/08 06/02/08 06/02/08

Marietta Atlanta Chamblee Oxford Knoxville Savanah Albany Chatsworth McDonough Tifton Covington Lawrenceville Lyons Perry Lithia Springs Pelham Warner Robins Baxley Duluth Uvalda Americus Tucker Dalton

L L R R L L R R R R R R R L L R L R L R L L R Total

06/02/08 06/02/08 06/02/08 06/02/08 06/02/08 06/02/08 06/02/08 06/02/08 06/03/08 06/03/08 06/04/08 06/10/08 06/10/08 06/10/08 06/12/08 06/16/08 06/16/08 06/13/08 06/17/08 06/20/08 06/20/08 06/30/08 06/30/08
61

R=Registrant L=Full Service

EXPIRED/CLOSED CHECK CASHERS (License/Registration)

Lic # 21560 21996 20942 22116 17048 21944 22476 20439 22979 17015

Company Food Basket, Inc. Kaur, Inc. ORO Cleaners, Inc. Osmani Corporation Cho Ae Lee Super Empire, LLC Dhruti Investments, Inc. Danny W. Springfield Quick Check Cashing, Inc. Mithwani, Inc.

DBA Name Food Basket County Line One Stop ORO Check Cashing Bilal Halal Meat & Grocery Citgo Express Super Coin Laundry Dhruti Check Cashing Northside Pawn and Jewelry Quick Shop Circle Food Mart

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City Marietta Roopville Norcross Atlanta Cartersville Marietta Americus Cartersville Sandy Springs Duluth

Type RD RD LD RD RD RD LD LD LD LD

Date Closed 04/04/08 04/04/08 04/11/08 04/14/08 04/22/08 04/29/08 05/01/08 05/08/08 05/09/08 05/12/08

Lic # 15607 22105 21695 23010 21294 23309 19841 22706 15087 20140

Company P & Y Enterprises, Inc. Banuestra Financial Corporation H.Z.R. Enterprises, Inc. Mortuza, Inc. Miya Family, Inc. Texaco Food Mart, Inc. Bharat, Inc. Rapid Service International, Inc. L&B Enterprises, Inc. Mala Tilva, Inc.

DBA Name World Beverage Banuestra H.Z.R. Enterprises BP Food Mart D&M Package Store Shell Food Mart Davis Food Mart Rapid Service Travel C&D Package Store Spring Road Package Store

City Duluth Roswell Norcross Atlanta Atlanta Lawrenceville Warner Robins Smyrna Stone Mountain Smyrna

Type RD LD RD LD LD RD RD LD LD RD Total

Date Closed 05/15/08 05/19/08 05/21/08 05/22/08 05/23/08 06/10/08 06/12/08 06/19/08 06/20/08 06/23/08 20

APPROVED/EXPIRED CHECK SELLERS/ MONEY TRANSMITTERS

Lic #

Company Name

Approved Money Transmitters

23367 Currencies Direct (America) Inc.

DBA Name

Closed Money Transmitters
Girocheck Financial, Inc. (fka 20306 Americana de Servicios)

Americana de Servicios

Approved 06/24/2008

Closed

City

ST

Wilmington DE

Total

1

04/29/2008 Miami

FL

Total

1

APPROVED NAME CHANGE: CHECK SELLERS/ MONEY TRANSMITTERS

Lic #

Company Name

Approved Money Transmitters

NONE

DBA Name

Approved

City

ST

Total

0

Check Casher Upgrades/Downgrades in Second Quarter
Downgraded from Full License to Registration 1 Total for 2008 - 3 Upgraded from Registration to Full License 4 Total for 2008 - 10
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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

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 News/Press Releases. 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. Also, please indicate which publication(s) you would like to receive. See the list under PUBLICATIONS on our home page.

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