MSB newsletter, Issue 1 (Jan.-Mar. 2011)

January - March 2011, Volume 7, Issue 1

(This Newsletter is a quarterly publication containing topics of interest to 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 msb@dbf.state.ga.us).
REGULATORY MATTERS Georgia News

In This Issue:

Semi-Annual Reporting:

2

Check Sellers and Money

Transmitters

Check Sellers and Money 2 Transmitters: Policies, Procedures and Practices to Review

Georgia Department of

3

Banking and Finance

Adopts Final Rules

Check Seller and Money Transmitter License Renewal Deadline
Thank you to those licensees who completed the online license renewal and sent in supporting documentation in a timely manner. The expiration date for all check seller and money transmitter licenses was December 31, 2010.

2011 State Holidays

4

Check Cashing Class

4

Customer Service Star for 5 the Previous Quarter
Action on Applications for 6 the Previous Quarter

Licensees who did not complete the renewal process by midnight December 31, 2010, cannot conduct business as a check seller or money transmitter until a new license/reinstatement is applied for and approved. Failure to properly RENEW a license requires a REINSTATEMENT of the license in order to conduct a sale of check / money transmission business.

Closed/Expired/Revoked/ 8 Surrendered in the Previous Quarter

Department Contact

9

Information

Please remember that the surety bond requested during the renewal process is for 2011. Also, the Department requests that licensees plan to submit next year's (2012) surety bond to this office by December 1, 2011. Submitting your bond to the Department by December 1, helps ensure that all licenses will be renewed on time and before license expiration.

If you have questions, please contact Teresa Koeppel at (770) 986-1639 or via e-mail at msb@dbf.state.ga.us. Please be sure to include your license number on any communication with the Department. This will allow us to assist you more quickly and efficiently.

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Semi-Annual Reporting: Check Sellers and Money Transmitters
By now, all Check Seller and Money Transmitter licensees should have received the Department's e-mail notice regarding Semi-Annual Reporting. These reports must be made by the licensee through the Department's on-line reporting system. The report that is due covers the period of July 1, 2010 through December 31, 2010.
Passwords for accessing the online reporting system are e-mailed to the licensee's primary contact, per the Department's records. The licensee may change the password at any time. Please make certain that the email we have on file for your company is correct.
The online system for Check Seller Semi-Annual Reporting is found at: https://bkgfin.dbf.state.ga.us/CSSemiAnnualReport.html
The online system for Money Transmitter Semi-Annual Reporting is found at: https://bkgfin.dbf.state.ga.us/MTSemiAnnualReport.html
Licensees should ensure that the average outstanding checks and outstanding transactions are calculated correctly. During 2011, licensees may be contacted to provide proof of the outstandings shown on the SemiAnnual Reports. You must complete the semi-annual reporting by March 1, 2011. Any licensee not filing a report by that date may be subject to a fine, administrative action, or both.
Check Sellers and Money Transmitters: Policies, Procedures and Practices to Review
As we begin 2011, the Department would like to remind licensees of several items that should be reviewed and/or revised regularly.
Review and/or revise your Anti-Money Laundering (AML) policies and procedures. Revise and reapprove them as needed, with the approval reflected in the official Board Minutes.
Ensure that your FinCEN registration is current. After an MSB completes its initial FinCEN 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.
Ensure that you have provided adequate BSA/AML training for your personnel. The BSA/AML training should also fall within the same cycle of the FinCEN registration renewal.
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Ensure that you have met the requirements for having an independent review of your BSA compliance. The review should be conducted on a periodic basis. The scope and frequency of the review will depend on the MSB's risk assessment, which should take into account the business products, services, customers, and geographic locations. The independent review frequency will be determined by the complexity of your business. Further guidance is provided by FinCEN at http://www.fincen.gov/financial_institutions/msb/pdf/Guidance_MSB_Independent_Audits9-21.pdf.
Revise or create a policy so that you are in compliance with requirements of the Office of Foreign Assets Control (OFAC). OFAC has compiled a compliance brochure for MSBs at http://www.treasury.gov/resource-center/sanctions/Documents/msb_reg.pdf.
As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not countryspecific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them. Learn more on the SDN List Resource Center website at http://www.treasury.gov/resourcecenter/sanctions/SDN-List/Pages/default.aspx.
Ensure that criminal background checks on agents and employees are current. The Department recommends that licensees conduct criminal background checks on their agents and employees at least every two years. Licensees may not employ a convicted felon or a first offender still serving a sentence. If such a person is employed, the law allows for revocation of the license. Keep a copy of the criminal background report in the employee's/agent's personnel file for review during an examination by the Department.
Georgia Department of Banking and Finance Adopts Final Rules
On November 2, 2010, the Department adopted Final Rules. They were filed with the Secretary of State on November 2, 2010, and became effective 20 days following or November 22, 2010.
The proposed rules were issued on September 23, 2010. The Department received ten (10) written comment letters: seven (7) regarding Loans Generally, Interpretations and Rulings; two (2) regarding Disclosure Requirements and Mortgage Loan Files; and one (1) regarding late fees for a mortgage loan originator's failure to timely obtain continuing education. After review of the comment letters received, revisions have been made for clarification purposes. The Department believes these Final Rules encourage safety and soundness, safe and fair mortgage lending, and conform to the law.
To view or download the Final Rules on our website, go to Laws and Regulations on our home page (http://dbf.georgia.gov) - http://dbf.georgia.gov/00/channel_title/0,2094,43414745_46295996,00.html and select the appropriate link for the Final Rules, OR access them directly from http://dbf.georgia.gov/vgn/images/portal/cit_1210/51/25/164549544DBFAdoptedRules11.02.10.pdf
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2011 State Holidays
In accordance with O.C.G.A. 1-4-1, Governor Sonny Perdue proclaimed the following dates as public and legal state holidays for the year 2011:

Holiday Name
New Years Day 2011
Martin Luther King Jr.'s Birthday Robert E. Lee's Birthday
Washington's Birthday
Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day
Christmas Day

Date Observed
January 1st Saturday Will be observed Monday, January 3rd
January 17th Monday
January 19th Wednesday Will be observed on Friday, November 25th
February 21st - Monday Will be observed on Monday, December 26th
April 25th Monday
May 30th Monday
July 4th Monday
September 5th Monday
October 10th Monday
November 11th Friday
November 24th Thursday Lee's Birthday will be observed on Friday, November 25th
December 25th Sunday (will be observed on Friday, Dec. 23rd) Washington's Birthday (will be observed on Monday, Dec. 26th)

Check Cashing Class Are you keeping the proper books and records required by law and regulation? Each month the Department offers a class on the MSB rules to new check cashers. There is no cost for the class and it is a great way to learn about Georgia law and Department regulations as well as the Bank Secrecy Act (BSA) and Anti-Money Laundering requirements. In addition, the Department now provides a certificate of attendance which licensees may use as evidence of training received on BSA and Anti-Money Laundering.
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This class has proven very helpful to those who have attended. During subsequent examinations, those who have attended the class have stated that the knowledge and information gained helped prevent violations and subsequent fines.
The one-hour class is held at the Department's main office on the third Tuesday of the month. The class is limited to a maximum of seven (7) attendees, so you must reserve a seat by emailing msb@dbf.state.ga.us or tkoeppel@dbf.state.ga.us at least five days before the class is held. Reserve your seat NOW! We look forward to seeing you.
CUSTOMER SERVICE STAR FOR THE PREVIOUS QUARTER
Susan Nelson, Applications Analyst (MSBs) The Department received comments from a customer stating: "Let me take a moment to tell you what a wonderful experience it has been dealing with you. You are helpful, patient, and so nice. We often hear only the bad stuff, but whenever I run into someone who is good at their job, I like to tell them so. It is always a pleasure speaking with you. You are thorough in your explanations and no matter how busy you may be you never hurry me off the phone. Thank you for being you, and I hope the powers-that-be appreciate the asset they have in you. Thanks again for your help in all this."
**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.
To ensure receipt of these e-mails, please make certain that:
The Department has your current e-mail address on file, and that notification of changes in your contact information (including e-mail address) are made via our online form at: https://bkgfin.dbf.state.ga.us/MSBUpdate.html Your e-mail account does not divert Department e-mail to your spam or junk folder. You are knowledgeable of website information, renewal or other filing due-dates, and check the Department's website for information.
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ACTION ON APPLICATIONS FOR THE PREVIOUS QUARTER
APPROVED/REINSTATED CHECK CASHERS (License/Registration)
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ACTION ON APPLICATIONS FOR THE PREVIOUS QUARTER
APPROVED/REINSTATED CHECK CASHERS (License/Registration) continued
R=Registrant L=Full Service License
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ACTION ON APPLICATIONS FOR THE PREVIOUS QUARTER
APPROVED CHECK SELLERS AND MONEY TRANSMITTERS
ITC Financial Licenses, Inc., Columbus, GA, License# 19469 - Upgraded from a money transmitter to a sale of checks license on 11/15/2010.
CLOSED/EXPIRED/REVOKED/SURRENDERED IN THE PREVIOUS QUARTER
CLOSED CHECK CASHERS (License/Registration)
RD=Registrant Dead LD=Full Service License Dead
CLOSED/EXPIRED/SURRENDERED CHECK SELLERS AND MONEY TRANSMITTERS
MD=Money Transmitter Dead SD=Sale of Checks Company Dead
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Department Contact Information
NAME Teresa Koeppel, Administrative Examiner (Check Sellers/Money Transmitters)
Susan Nelson, Applications Analyst (Check Cashers)

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

PHONE# 770-986-1639

nelson@dbf.state.ga.us

770-986-1652

Mailing Address: Georgia 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
When corresponding with the Department, e-mail communication is preferred. 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 with an answer. The main Division e-mail address is
msb@dbf.state.ga.us.
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). Also, please indicate which publication(s) you would like to receive. See the list under Publications on our home page.

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