MSB newsletter, Issue 3 (July-Sept. 2009)

July to September 2009, 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 (Department). 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 MSBDBF@dbf.state.ga.us.)
REGULATORY MATTERS Georgia News
Posted Check Casher Fees
Section 7-1-705(a) of Article 4A of the Official Code of Georgia states that in every location licensed or registered under Article 4A, there shall be conspicuously posted and at all times displayed a notice stating the charges for cashing checks. It has been brought to the Department's attention that some licensees/registrants are charging more than the posted fee amount. Licensees and registrants are allowed to charge up to the maximum amount allowed under the law, but if the posted fee amount is less than the maximum, the Department encourages its licensees/registrants not to exceed the posted maximum.
If you choose to have a variable fee for cashing a particular type of check, then your posted charges should state a MAXIMUM fee for cashing such checks. The check cashing customer has the right to know what his or her fee will be before the transaction is completed, and the Department will closely review your posted fee amounts when reviewing your compliance with this statute.
It has also come to the Department's attention that some check cashers are rounding their fees up to the nearest dollar. This is permitted as long as the rounded up amount does not exceed the legal limits imposed in Article 4A and the customer is informed of this practice. In addition, this fee should not exceed the fee amount posted in the business as noted above.

In This Issue:

Posted Check

1

Casher Fees

Check Sellers and

2

Money Transmitters:

Semi-Annual

Reporting

Ownership Issues

2

Administrative

3

Action Searches for

MSBs

Check Cashing Class 4

NDFI Division

4

Management

Changes

Reminder: Contact

5

Information E-mail

Addresses

Action on

6

Applications for the

Previous Quarter

Administrative

8

Actions

Department Contact 9 Information

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Check Sellers and Money Transmitters: Semi-Annual Reporting
The Department's online system opened July 1, 2009 for the semi-annual update. You should have received an email notice that included your password and other important information. These were sent on June 25, 2009. The system is available from July 1st thru August 31st. Late fines of $5,000 will be assessed on September 2, 2009.
A few common issues:
As you enter new agents or returning agents (you might be able to reinstate rather than enter these), please use new ID numbers. The system cannot handle two agents with the same ID number and your agent list will be incorrect.
List the first 19 countries with the largest volumes and then group the others into the category of "OTHER" and input a total. Please note that the list is limited to 20.
Whether your fees are dollar based or percentage based, you need to report the lowest low and the highest high.
The surety bond must cover the locations and the outstandings. Refer to the newsletter: January March Volume 5 Issue 1, to learn how to determine if the bond is adequate.
Please print the attestation or affidavit page when the report is complete, along with any other pages that you want to print, so that you have proof of completion.
Direct links to the semi-annual reporting forms are available from the Department's MSB website: http://dbf.georgia.gov/msbforms
Or you may use the links noted below for each license type:
https://bkgfin.dbf.state.ga.us/MTQtrReport.html for Money Transmitters, and: https://bkgfin.dbf.state.ga.us/CSQtrReport.html for licensed Sellers of Checks.
Ownership Issues
Several recent examinations of licensed check cashers have exposed discrepancies between the ownership as established by the company tax returns and the ownership as filed with the Department. Georgia licensed and registered money service businesses must seek approval for all changes in control, and all new owners of 10 percent or more must be investigated prior to the change. Failure to notify and obtain approval by this agency can result in a $5,000 fine and additional administrative action by the Department.
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When a corporation is formed and there is one shareholder of the corporation, there will be shares of stock issued and authorized through a corporate resolution. If there are two or more owners, they will each be shown to own shares of stock.
When applying for a license/registration from the Department, all owners of 10 percent or more must be listed along with the control interest in the company.
When shareholders, directors or other key personnel change, this information should be noted in the corporation's records and approved by the Department. Tax returns should also properly reflect the ownership as established by corporate records. It is incorrect to assume a spouse "owns" 50 percent of a business solely due to their marital status.
All of the documents discussed here are legal documents that, when put together, should all tell the same story. They should clearly indicate the owners of a company.
Administrative Action Searches for MSBs
The Department has made available a search function on its website to provide applicants, licensees and registrants with an easy method for ensuring compliance with law changes effective July 1, 2009. These changes were made to O.C.G. A. Sections 7-1-689.2 (pertaining to check sellers and money transmitters) and 7-1-707.2 (pertaining to check cashers), which state in part that each applicant, licensee and registrant shall examine the Department's public records before hiring an employee to determine that such employee is not subject to a cease and desist order. These code sections further provide that the Department may not issue a license (or registration) to an applicant or may revoke a license (or registration) from a licensee (registrant) if such person employs any other person against whom a final cease and desist order has been issued within the preceding five years for a violation of money service business laws.
Links to these new searches are found on our website at: Check Casher Cease & Desist or Consent Orders Check Seller/Money Transmitter Cease & Desist or Consent Orders
Check Cashing Class
The Department is offering a class on the MSB Rules and Regulations for check cashers. There is no cost for the class, which is not mandatory. This class is a great way to learn about state law and regulations as well as the Bank Secrecy Act and Anti-Money Laundering requirements. Please read the law and the rules and bring your questions to ask the examiners at the class! Gain knowledge so that you can avoid violations and fines.
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The class is held at the Department Main Office on the second Tuesday of the month. The class size is limited in space, but if the demand is great enough, more classes will be scheduled. This is a one-hour class. You must reserve a seat by emailing MSBDBF@dbf.state.ga.us. Reserve your seat NOW! We look forward to seeing you.

NDFI Division Management Changes
Melinda Kinard, Director of Money Service Businesses and Mortgage Licensing, retired effective July 1, 2009, after 34 years of faithful service to the Department.

Melinda has worn many hats during her career with the Department. She began her career as an Assistant Financial Examiner. She later became the Director of Training and then became the Director of Information Technology prior to moving over to the Non-Depository Financial Institutions Division in 2002 where she was appointed to her most recent position.

Melinda Kinard

Melinda served on the curricula committees and as an instructor for various Conference of State Bank Supervisors (CSBS) schools. She also served as an

instructor for IT courses offered through the Federal Reserve Bank of Atlanta and for miscellaneous courses

offered by the Georgia Bankers Association.

Melinda has a BBA degree in Management from Georgia Southern University. She is also a Certified Examination Manager. Congratulations Melinda! We wish you the best in your well-deserved retirement.

With the announcement of Melinda's retirement, the Department made the decision to reorganize the NonDepository Financial Institutions Division in light of the changes occurring in the mortgage industry and the implementation of the Nationwide Mortgage Licensing System.

The Director of Money Service Businesses and Mortgage Licensing position will be redirected effective with Melinda's retirement and her job duties spread among various other positions. Janet Anderson, the newly appointed Supervisory Manager for Mortgage Licensing, will take over Melinda's duties in regards to mortgage licensing. The overall supervision of the Money Service Businesses Section will be transferred to Deputy
Commissioner Rod Carnes.

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**RREEMMIINNDDEERR**
Contact Information E-mail Addresses
Since the Department's main method of communicating with licensees/registrants is via e-mail, it is very important that you supply this agency with a valid e-mail address and that you keep us informed if your email address changes. Please do the following:
Make certain that the Department has your current e-mail address on file, and that notification of changes in that address are made via our online form at: https://bkgfin.dbf.state.ga.us/MSBUpdate.html Make certain that your e-mail account does not divert Department e-mail to your spam or junk folder. Make certain you are knowledgeable of website information, renewal or other filing duedates, and check the DBF website for information. Information is posted on the website, in the event you did not get your personalized e-mail.
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ACTION ON APPLICATIONS FOR THE PREVIOUS QUARTER
APPROVED CHECK CASHERS (License/Registration) Second Quarter 2009

Lic # Type Company Name

23919 R

620 Highway 155 South, LLC

23923 R

Crogan Investment, Inc.

23924 L

Ya Molla Corporation

23926 R

Gray Highway Pawn, Inc.

23927 R

Chung's Car Care Center, Inc.

23928 L

National Title Pawn of Trenton, Inc.

23930 R

Kampala Enterprises, Inc.

23933 R

New Green Enterprises, Inc.

23936 R

Marie C. Conner

23937 L

Priya Impex, Inc.

23938 L

Jubilee Business Ventures of Georgia, LLC

23942 L

M & S Dobani, Inc.

23943 L

Satprabha, LLC

23946 R

R. N. A. Investments Incorporated

23947 L

Odeh Express, Inc.

23950 L

Nida Investment, Inc.

23953 L

Smart Group USA, Inc.

23956 L

Sadguru Dhyani, Inc.

23957 R

Olive Supermarket, LLC

23959 R

Shrani, Inc.

23960 R

Gulam Hussain, Inc.

23963 R

Xanadont, Inc.

23965 R

Roy Everett Lyons, Jr.

23967 R

Shree Ambica Enterprise

23968 L

Servi-Exchange, Inc.

23970 L

Mexi-Mart Grocery & Money Services, Inc.

23972 L

Moreno & Associates Group, Inc.

23973 R

Just Chill, Inc.

23977 R

Metro Carrollton Corporation

23978 R

Om Siddhi, Inc.

DBA Name Shell Food Mart Citgo Food Mart The Market Shurlington Jewelry & Pawn Griffin Farmer's Market National Title Pawn Welcome Texaco Chevron Food Mart Conner Ventures Priya Food Mart Clermont Food Mart Quick Stop Petro Food Mart Halls Bridge Food Mart Odeh Express Quick Stop El Azteca Grocery
Olive Supermarket Chapman's Shoppette Best Food Mart Rabbittown Package Warehouse Johnson's Supermarket Bowdon Road Shoppette Rumba Latina Rumba Latina
Hop-N-Shop Metro Carrollton Food Mart Sonny's Apex Express

City

Approved

Dublin

04/01/2009

Lawrenceville 04/02/2009

Snellville

04/03/2009

Macon

04/06/2009

Griffin

04/06/2009

Trenton

04/06/2009

College Park 04/10/2009

Acworth

04/16/2009

Soperton

04/15/2009

Alpharetta

04/15/2009

Clermont

04/13/2009

Cumming

04/22/2009

LaGrange

04/17/2009

Jackson

04/17/2009

Norcross

04/22/2009

Lawrenceville 04/23/2009

Roswell

04/29/2009

Atlanta

05/01/2009

Augusta

05/01/2009

Cedartown 05/05/2009

Tucker

05/05/2009

Gainesville 05/11/2009

Covington

05/11/2009

Carrollton

05/15/2009

Atlanta

05/28/2009

Jonesboro

05/28/2009

Lake Park

05/21/2009

Rome

05/25/2009

Carrollton

06/02/2009

Commerce

06/01/2009

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ACTION ON APPLICATIONS FOR THE PREVIOUS QUARTER
APPROVED CHECK CASHERS (License/Registration) continued

Lic # Type Company Name

23979 L

Central Services, Inc.

23980 L

Portal Financial Services, Inc.

23981 L

Payroll Processing, LLC

23992 L

Krisha Maan, Inc.

23998 R

J. C. Brantley, Inc.

23999 L

Elisa Services, Inc.

24006 R

Mohammed Alauddin

24007 R

Jagdishbhair Patel

24012 R

Aryaman Ventures, Inc.

24013 L

Shree Gogaji Krupa, LLC

R=Registrant L=Full Service

DBA Name Speedy Check Cashiers
Payroll Processing Sportsman II Main Street Bait, Tackle and Pawn Elisa Services K Food Mart A-1 Food and Beverage Discount Tobacco & Beer Parkway Bottle Shoppe

City

Approved

Norcross

06/01/2009

Portal

06/04/2009

Dawsonville 06/04/2009

Macon

06/08/2009

Vidalia

06/12/2009

Mableton

06/18/2009

Chamblee

06/19/2009

Rome

06/19/2009

Loganville

06/29/2009

Forest Park 06/29/2009

TOTAL:

40

EXPIRED/CLOSED CHECK CASHERS (License/Registration)

Lic# Type

Company Name

20892 LD S & K Mega Enterprise, LLC

20983 RD Raphia, Inc.

23379 RD Claude Ricky Heath, Sr.

21021 RD Patel, Bipinchandra

22716 LD Liberty Check Cashing, LLC

23434 RD Hee Sook Kim

22923 RD Krishan Handa

21149 RD Terrier Properties, LLC

23393 RD Clao's Multiservicio, Inc.

23270 LD Pok Ye Holbrook

20137 LD Epiphany Funding, LLC

22984 RD Hamani Enterprises, Inc.

DBA Name Citgo Quik Mart Griffin Farmer's Market Northside Pawn and Jewelry Chapman's Shoppette Liberty Check Cashing Johnson's Supermarket Marietta Conference Center Gift Shop Rabbittown Package Warehouse Clao's Multiservicio Sportsman's Package Store #2 Epiphany Check Cashing Short N Easy

City

Closed

LAWRENCEVILLE 04/01/2009

GRIFFIN

04/06/2009

CARTERSVILLE 04/20/2009

CEDARTOWN

05/05/2009

MONTGOMERY 05/07/2009

COVINGTON

05/08/2009

MARIETTA

05/10/2009

GAINESVILLE

05/15/2009

NORCROSS

06/01/2009

MACON

06/08/2009

NORCROSS

06/23/2009

CARTERSVILLE 06/29/2009

TOTAL:

12

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ACTION ON APPLICATIONS FOR THE PREVIOUS QUARTER
APPROVED CHECK SELLERS AND MONEY TRANSMITTERS

Lic# Type Company Name

DBA Name

23954 M

Cambridge Mercantile Corp. (USA)

City

ST

Approved

Princeton NJ

06/01/2009

TOTAL:

1

EXPIRED/CLOSED CHECK SELLERS AND MONEY TRANSMITTERS

Lic# Type Company Name NONE

DBA Name City

ST

Closed

TOTAL:

0

MONEY TRANSMITTER NAME CHANGE

Lic# 9344

New Name Travelex Global Business Payments, Inc.

Prior Name Ruesch International, Inc.

City

ST

Washington DC

Effective
05/05/2009

ADMINISTRATIVE ACTIONS
FINAL CEASE AND DESIST ORDERS
Enrique Delgado, Rydal, GA Cease and Desist Order issued on May 22, 2009 became final on June 22, 2009.
Awad, Taysir, Powder Springs, GA - Cease and Desist Order issued on May 22, 2009 became final on June 22, 2009.

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Department Contact Information

NAME
Joel Byers, Supervisory Manager - Money Service Businesses Peter Lisowski, Financial Examiner Teresa Koeppel, Administrative Examiner Susan Nelson, Applications Analyst

E-MAIL ADDRESS
byers@dbf.state.ga.us lisowski@dbf.state.ga.us tkoeppel@dbf.state.ga.us nelson@dbf.state.ga.us

PHONE#
770-986-1656 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 MSBDBF@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 dbfpress@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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