MSB newsletter, Issue 1 (Jan.-Mar. 2009)

January to March 2009, Volume 5, 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

REGULATORY MATTERS Georgia Regulatory Issues
News Notes from the Desk of Teresa KoeppelAdministrative Examiner
SOCs and MTs- LOCATIONS

DBF Administrative Notes

1

Money Transmitter

and Seller of Checks

2

Renewals

Semi-Annual Reporting

2

BSA/FEDERAL NEWS

When compiling information for the semi-annual report (due March 1, 2009 for the July through December 2008 reporting period), be sure that you include all locations. Considering that you may have branches as well as agents, you must include both. In addition, consider that your agents may have more than one location, so you must list each location. Remember, each location must be considered for your bond amount, and note that each location increases the required bond by $5,000 to a maximum of $250,000 for the required amount based on locations. If your average daily outstandings exceed $250,000, you must increase your bond based on outstandings. Please refer to our frequently asked questions on our website (www.gadbf.org) and refer to Code Section 7-1- 683.

MSB Registration

3

HB 4049- Money

Service Business Act

3

of 2008

OTHER NEWS

State Holidays-2009

4

Customer Service Star 5

Action on Applications During the Previous Quarter/Closed Licensees

5 to 8

FINANCIAL STATEMENTS/ACCOUNTING SYSTEMS and AUDITS

Department Contact Information

9

One thing I noticed during renewals was that many of you do not include your outstanding transactions on your balance sheet as either an asset or a liability. Outstanding transactions are those that are not completed in 24 hours and therefore they are receivable as an asset, or payable as a liability. Completed transactions are those that are paid to the intended recipient (not the bank or agent location). Your accounting system should reflect these amounts on your balance sheet as a receivable if it is coming to you and a payable if it is being sent. Sellers of Checks are required to have an annual audit performed and a copy of that audit is required to be provided to the Department of Banking and Finance within 30 days of the date you receive it. All balance sheet items should be properly categorized. In addition, all Sellers of Checks and Money Transmitters must maintain General Ledgers which shall be posted at least monthly containing all assets, liabilities, capital, and income and expense accounts, as required by Code Section 7-1-687.1(a)(2).

MISCELLANEOUS

Licensees must notify the Department when you move your main office or any other offices or when you close any location.

- 1 -

When your owners or officers change, do the following: go to our website and print the Form MSB3 for each new officer or owner, send in with fingerprint cards and a recent credit report so that we can investigate and approve these individuals.
Thank you to those who renewed in a timely manner. You should have received your license certificate by email. Be sure to keep your contact information current so that emailed notices reach the correct party.
You should have received a notice by email telling you that Semi Annual Reporting began on January 2, 2009. When completing this report online, you must include the name of any revoked agents, the reason revoked, and the amount of any outstanding claims involved (Rule 80-3-1-.01(4)).
HAPPY NEW YEAR!

Money Transmitter and Check Seller Renewals
Licensed Money Transmitters and Sellers of Checks who had not completed their renewal by the midnight December 31, 2008 deadline have had their licenses expire and will have to cease money service business operations. Failure to properly RENEW a license will require a REINSTATEMENT of the license in order to conduct check selling/transmission activity in Georgia. Those affected should please see the application
on the internet at:
http://dbf.georgia.gov/msbfo rms.

Semi-Annual Reporting: Check Sellers and Money Transmitters
It is time once again to submit Semi-Annual Report information. As with the last reporting period, these reports must be made by the licensee on-line. No electronic (CD/diskette) submissions to this office will be accepted, with the exception of the initial file submitted when a licensee is first approved.
Passwords to the system are provided in a letter notifying licensees of the new process. You may change the password at any time. Quarterly notifications are being sent to each licensee licensees will be notified by e-mail only. Please make certain your e-mail on file is correct!
Note this screen. Direct links are available from the Department's MSB website: http://www.ganet.org/dbf/other_forms.html

- 2 -

BSA/FEDERAL NEWS
FINCEN - MSB Registration
Remember that it is time to renew your registration with FinCEN.
For all entities required to register, renewal of that registration is due by December 31 of the second year from the registration date, and then due bi- annually thereafter. For instance, if you first registered on October 3, 2007 then you should have renewed that registration by December 31, 2008.
FinCEN has as convenient RENEWAL CALCULATOR to help you determine your renewal date. Goto: http://www.msb.gov/guidance/msb_calculator.php

NEW BSA EXAMINATION MANUAL

FinCEN has released a manual for examiners of

money services businesses. The manual provides

policies and procedures to use to evaluate whether

and MSB's anti-money laundering program is

adequate to comply with the requirements of the

Bank Secrecy Act.

The manual includes

information regarding what your program is

required to include, BSA/AML risks, and sound

practices to use to mitigate those risks.

A copy of the manual is available at: http://www.fincen.gov/news_room/rp/msb_exam_mat erials.html

FYI - House Bill 4049 - Pending
As we noted last quarter, House Bill 4049, the purpose of which is to amend section 5318 of Title 31, United States Code by eliminating regulatory burdens imposed on insured depository institutions and money services businesses and enhance the availability of transaction accounts at depository institutions for such business, has been passed in the House.
As of November 6, 2008, the bill is still pending a vote in the Senate. Licensees should keep in mind that debate may be taking place on a companion bill in the Senate, rather than on this particular bill. Last Action on the bill was July 23, 2008 after being received in the Senate and read twice and referred to the Committee on Banking, Housing, and Urban Affairs. The next meeting of the Senate is Jan 2, 2009.
RECAP: Known as the Money Service Business Act of 2008, this bill amends federal law governing anti-money laundering programs to provide that an insured depository institution has no obligation to review the compliance with federal anti-money laundering requirements of a money transmitting business for whom it maintains an account if such institution has on file specified mandatory self-certifications submitted by the money transmitting business.
The bill provides that money services businesses (MSBs) may self-certify their compliance with anti-money and counter-terrorism regulations when establishing accounts with federally insured depository institutions. MSBs must certify that they are in compliance with federal banking law and registered as such. Additionally, the MSB
- 3 -

must certify that it maintains an anti-money laundering program as required by federal law, be licensed or registered as an MSB by each State in which it operates, and meet such other regulations as the Treasury Secretary formulates to assure strong anti-crime regimes. The bill prescribes requirements for self-certification by a money transmitting business
The MSB certification requirements under this bill also extend to agents of money transmitting businesses. In addition to the certification requirements for MSBs, agents of MSBs must provide that they are contract bound agents of an MSB, will comply with all applicable laws, and will notify any federally insured depository institution of any material changes to their relationship with the MSB to which they are a contracted agent.
The Bill also sets forth civil and criminal penalties for violations of this Act without regard to whether such violations were willful and shields such institution from liability for the non-compliance of a money transmitting business and its agents with federal anti-money laundering requirements. The Bill directs the Secretary of the Treasury to prescribe implementing regulations.

2009 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 2009.

NOTE

DEPARTMENT OFFICES WILL BE CLOSED THIS FIRST QUARTER ON JANUARY 19, 2009 IN

HONOR OF THE MARTIN LUTHER KING, JR. HOLIDAY.

HOLIDAY DATE

OBSERVANCE DATE

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

Thursday, January 1 Monday, January 19 April 26 ~ will be observed Monday, April 27 Monday, May 25 July 4 ~ will be observed Friday, July 3 Monday, September 7 Monday, October 12 Wednesday, November 11 Thursday, November 26 January 19 ~ will be observed on Friday, November 27 February 16 ~ will be observed on Thursday, December 24 Friday, December 25

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!
- 4 -

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.
Applications Analyst Susan Nelson (NDFI Division-MSBs): The Department received survey comments from three different customers regarding Susan's overall quality of service: "...in processing the application and background checks.....excellent and direct..." "...Mrs. Susan Nelson's courtesy and how fast the application was processed." "Prompt e-mail responses and updates.... My contact Ms. Susan Nelson (has) always been knowledgeable and helpful.""
CONGRATULATIONS AND GREAT JOB!!
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.
Z Z Z
Our VISION is to be the best financial services industry regulator in the country
Progressive. Proactive. Service-Oriented.

ACTION ON APPLICATIONS DURING THE PREVIOUS QUARTER

APPROVED CHECK CASHERS (License/Registration) Fourth Quarter 2008

Lic # 23629 23631 23640 23643 23656 23658 23661 23665 23666 23670

Company Name Doraville Food Mart, Inc. Kiran, Inc. Sadhi Krupa, Inc. HNG Enterprises, Inc. Shree Prabhu Krupa, Inc. Purity Enterprise, Inc. Elias Investments, Inc. Carniceria La Superior, Inc. Kynn, Inc. Jai Bhole, Inc.

DBA Name Doraville Food Mart Mini Mart #2 Clean Scene Laundry HNG Check Cashing ABC Convenience Store Purity Enterprise Big John's Package Carniceria La Superior Chevron Minit Mart

City Doraville Swainsboro Tifton Duluth Resaca Atlanta Stone Mountain Gainesville Douglasville Douglas

Type R R R L R L L L R L

Approved 10/02/08 10/02/08 10/08/08 10/17/08 10/20/08 10/20/08 10/22/08 10/27/08 10/27/08 10/29/08

- 5 -

Lic # 23671 23672
23684 23685 23688 23696 23698 23699 23700 23701 23702 23703 23704 23705 23706 23707 23715 23716 23717 23718 23719 23720 23721 23722 23723 23724 23725 23726 23727 23728 23729 23730 23731 23733 23734 23735 23736 23738 23739 23742 23743 23746 23747 23748 23750

Company Name Eagles Landing, Inc. Golden Pond, LLC
Mera Enterprise, Inc. Gul and Sons Corporation Blocker's Convenience Market, Inc. Krisha Investment, Inc. P&C Check Cashing, Inc. Won & Kim Investment, Inc. Sri Khalsa Inc. DS Convenience Store, Inc. Stop 5, LLC Carniceria Potosina, Inc. R Mohan Corporation Narcisa Leonardo Patricia Waddell Purvis DC Stores, Inc. Riley's Cellar, LLC Azkar, Inc. Henil Alma Corporation Big O's Package Store, Inc. Danneman's Supermarket, Inc. Felton's Red & White, Inc. Jay Santram, Inc. DYYU, Inc. Deano's Outlet, Inc. Shinhan Enterprise, Inc. Larry's Check Cashing, LLC Shree Siya, Inc. Catalina Supermarket, Inc. LBN Enterprises, LLC Ali & Ali Business, Inc. Fresco Martin Libaas Town, LLC HR Beverage, Inc AKN Enterpises, Inc. KAN Investments, Inc. American Family Tax Service Corp. Xpand Petroleum, Inc. C.W.O Enterprises, Inc. SAEE, Inc. Moultrie Package Store, Inc. Song's Curb Market, Inc. Jeeba, LLC Gane, Inc. R.R.P. Enterprises, Inc.

DBA Name
B2E Mobile Financial Services Good Spirits Package Texaco Food Mart Blocker's Convenience Market Discount Tobacco #5 P&C Check Cashing Redan Package Store Best Value One
Phillips 66 Food Mart Carniceria Postina Quick Stop #2 Abarrotes Emanuel 2 Quality Pawn & Sales Exxon Market The Check Company Shell Food Mart Quick Stop
Southside Package Shop Forsyth Package Moe's Outlet Curley's Outlet Larry's Check Cashing Cordele Food Mart Catalina Supermarket LBN Enterprises Parker Grocery
America's Mail Center Mcleod's Food Store Dixie Food Mart Sigman Road BP
A&E Check Cashing
Chevron Food Mart G's Package Store Roc's Corke Shoppe

- 6 -

City Columbus Duluth
Decatur Doraville Louisville Americus Atlanta Stone Mountain Stone Mountain Norcross Riverdale Winder Helena Dalton Milledgeville Byron Red Oak Norcross Alma Columbus Atlanta Marshallville Dublin Forsyth Morrow Ellenwood Union City Cordele Hapeville College Park Conley Cumming Atlanta Soperton Covington Conyers Social Circle Mableton Rome Roswell Moultrie Augusta Locust Grove Decatur Milledgeville

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

Approved 10/29/08 10/30/08
11/10/08 11/10/08 11/19/08 11/17/08 11/17/08 11/17/08 12/11/08 11/19/08 11/18/08 11/19/08 11/19/08 11/19/08 11/19/08 11/19/08 11/25/08 12/01/08 12/01/08 12/01/08 12/01/08 12/16/08 12/04/08 12/04/08 12/04/08 12/04/08 12/04/08 12/02/08 12/02/08 12/02/08 12/02/08 12/08/08 12/08/08 12/08/08 12/08/08 12/08/08 12/08/08 12/08/08 12/08/08 12/10/08 12/10/08 12/16/08 12/16/08 12/16/08 12/11/08

Lic # 23760 23761 23762 23763 23764 23765 23770 23771
23775

Company Name Moreland Bottle Shop, Inc. MPV Inc. Charania Investment, Inc. K & C Foods, LLC Keith M. Wall The Shipping Center, Inc. Columbia Crossing Partners, LLC Southern Creations Development Group, LLC S&S Bottleshop, LLC

DBA Name Y&T Check Cashing Market Place #6 Papa's Market Place Super Thrift Food Store Wall to Wall Package
Five Boroughs Check Cashing Rock Chapel Stop

R=Registrant L=Full Service

City Atlanta Macon Macon Atlanta Thomson Hiram Grovetown Lithonia
Chamblee

Type L L L R L L L L

Approved 12/17/08 12/17/08 12/16/08 12/22/08 12/22/08 12/22/08 12/23/08 12/23/08

L

12/23/08

TOTAL

64

EXPIRED/CLOSED CHECK CASHERS (License/Registration)

Lic # 13851 21943 21987 22475
23412 23624

Company JIA UN'S Corporation MS&J, Inc. B&K Group, Inc. Kritika Investment, Inc. All Pro Financial Services of Marietta LLC Local Check Cashing, Inc.

DBA Name Quick Mini Market Don Tree Big John's Package Discount Check Cashing
All Pro Financial Services of Marietta Local Check Cashing

City Columbus Norcross Stone Mountain Americus

Type RD LD LD LD

Date Closed 10/22/08 12/16/08 10/20/08 11/07/08

Marietta Doraville

LD
LD TOTAL

10/31/08
10/22/08 6

APPROVED NAME CHANGE: CHECK SELLERS/ MONEY TRANSMITTERS

Lic #

Company Name

Approved Money Transmitters/SOC Names

NONE

DBA Name

Approved

City

ST

Total

0

- 7 -

APPROVED/EXPIRED CHECK SELLERS/ MONEY TRANSMITTERS

Lic #

Company Name

Approved Money Transmitters

23569 Tempo Financial U.S. Corporation

23674 GV Financial Corp.

23711 Google Payment Corp.

Closed Money Transmitters

DBA Name DBA Name

Approved 10/27/2008 11/20/2008 12/22/2008

Closed

City

ST

Greenwood City Pompano Beach Mountain View
Total
City

CO
FL
CA 3
ST

18924 Global FX, Inc. 18930 Orlandi Valuta 18939 Vigo Remittance Corp. 20502 iKobo, Inc. 22768 Aaran Financial Services, Inc. 21262 Kim Dinh Vinh Phat, Inc.
Closed Seller of Check Licensees
9022 Travellers Cheque Associates LTD 18675 Golden Pantry Food Stores, Inc.

Global FX Orlandi Valuta Vigo Remittance iKobo
DBA Name Travellers Cheque Associates, Ltd. Golden Pantry Food Stores

(Merger) (Merger) (Merger)

12/31/08 10/31/08 10/31/08 12/31/08 12/04/08 12/31/08
Closed
12/31/08 12/31/08

Miami
Englewood Sunrise Atlanta
Minneapolis Chamblee
City Brighton, England
Bogart Total

FL CO FL GA MN GA ST
NA GA
8

Check Casher Upgrades/Downgrades in Third Quarter
Downgraded from Full License to Registration 0| Total for 2008 - 31 Upgraded from Registration to Full License 3| Total for 2008 - 40
- 8 -

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.
- 9 -