MSB newsletter, Issue 4 (Sept.-Dec. 2011)

September - December 2011, Volume 7, Issue 4

(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

In This Issue:

Annual License Renewal 2 - Check Sellers and Money Transmitters (continued)

Check Casher

2

License/Registration

Renewal Deadline

Georgia News

Semi-Annual Reporting: 3 Check Sellers and Money Transmitters

Annual License Renewal - Check Sellers and Money Transmitters
On September 29, 2011, the Department sent out check seller and money transmitter renewal notices VIA E-MAIL to existing licensees. If you did not receive the login information and online renewal requirements via e-mail, please be sure that your e-mail account does not divert Department e-mail to your spam or junk folder and that you have the correct e-mail address on file with our Department.
You must complete and pay for your renewal online, either by credit card or ACH. If you have a checking account, you can choose the ACH payment option. You will need the bank routing number and your checking account number to pay by ACH (see sample below):

Money Transmission for 3 Customers Outside Georgia

Renewal of Money

3

Services Business

Registration with FinCEN

FinCEN Proposes

4

Mandatory Electronic

Filing of Reports

Required Under the BSA

Depositing of Checks

4

Cashed by Licensees /

Registrants

Upcoming State Holidays 5

Check Cashing Class

5

Administrative Actions

6

License and Registration 7 Activity for the Previous Quarter

Customer Service Star for 9 the Previous Quarter

Department Contact

10

Information

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Annual License Renewal - Check Sellers and Money Transmitters (continued) Completion of the application, associated questionnaire, reporting schedules, and payment for all renewal fees and outstanding examination fees or fines must be done online. However, supporting documentation must be submitted separately using the Cover Sheet for Attachments provided online or with your renewal notice. When supplemental information is not received in a timely manner, renewal prior to license expiration cannot be guaranteed.
Please remember that the surety bond needed for renewal must cover the new license year. The surety bond, the current financial statement, and the audit or annual financial are due December 1st.
Renewals must be completed online by midnight, November 1, 2011, or they are considered late, and the licensee will be assessed a late fee of $300 in addition to the renewal fee. Licensees who do not complete the renewal process by midnight December 31, 2011, will have their licenses expire.
If you have questions regarding the license renewal process, please contact the Department 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.
Once your license is approved, you will be notified by e-mail and will be directed to the Department's website for retrieving your 2012 license certificate.
Check Casher License/Registration Renewal Deadline
The expiration date for all check casher licenses and registrations was September 30, 2011. If you did not complete the online license/registration renewal process by September 30, 2011, your license/registration expired and you cannot conduct business as a check casher until a new license/registration is applied for and approved.
Failure to properly RENEW a license/registration before expiration requires a REINSTATEMENT of the license/registration in order to conduct a check cashing business. Please e-mail Applications Analyst Susan Nelson at nelson@dbf.state.ga.us to discuss procedures for reinstating an expired license or registration.
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Semi-Annual Reporting: Check Sellers and Money Transmitters
The Department wishes to thank all licensees for completing their January 1, 2011 - June 30, 2011 Semi-Annual Reports through the Department's on-line reporting system. It appears licensees have become more accustomed to the reporting process, since the Department received fewer questions during this reporting period. Administrative Examiner Teresa Koeppel will be notifying licensees who need to increase their bonds prior to renewal.
Money Transmission for Customers Outside Georgia
In recent discussions with money transmitters, it has been brought to the Department's attention that when people move out of Georgia, they continue to use the Georgia-based money transmitter to send money home. Most states require money transmitters to be licensed based on transactions that occur for consumers in their state. Transmitting funds for customers in other states requires, in most cases, a license in that other state. If you are transmitting money for customers outside Georgia, it is your responsibility to find out the requirements in that state and make a decision to either get licensed or stop servicing those customers. Many states will assess fines if they find you conducting business in their state without the proper license.
Renewal of Money Services Business Registration with FinCEN
Federal law, specifically the Bank Secrecy Act (BSA), requires certain Money Services Business (MSBs) to register with the Financial Crimes Enforcement Network (FinCEN) including, but not limited to:
Money Transmitters - All money transmitters are required to register as an MSB regardless of the amount of transmittal activity.
Issuers, sellers or redeemers of traveler's checks, money orders or stored value - Are required to register as an MSB if they issue/sell/redeem more than $1,000 for one person in one or more transactions on any one day.
Check cashers - Are required to register as an MSB if they cash a check for more than $1,000 for one person in one or more transactions on any one day.
The form, Registration of Money Services Business, FinCEN Form 107, must be filed with FinCEN within 180 days of the first transaction that qualifies the business as an MSB under the BSA. After the initial registration with FinCEN, the MSB must file the form to renew its registration by December 31 of the second calendar year preceding the 24-month renewal period. Please refer to FinCEN's resources for MSBs for further information and forms for federal registration. If the MSB fails to renew their FinCEN registration when due, they may be
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Renewal of Money Services Business Registration with FinCEN (continued)
required to re-register. Questions regarding the federal registration should be directed to FinCEN at: 1-866-270-0733 for the ECC Helpline or 1-800-949-2732 for the Regulatory Helpline.
Please keep in mind that the requirements above concern federal registration for MSBs are separate from, and in addition to, the state licensing requirements for check cashers, sale of checks/money order companies, and money transmitters.
FinCEN Proposes Mandatory Electronic Filing of Reports Required Under the Bank Secrecy Act
On September 14, 2011, FinCEN announced a proposal to mandate electronic filing of FinCEN reports required under the BSA beginning on June 30, 2012. This proposal is targeted at improving efficiency, reducing costs for the financial services industry, and enhancing the ability of investigators, analysts, and examiners to gain better, timelier access to important financial information.
BSA E-Filing is a free, web-based electronic filing system that enables filers to submit FinCEN reports through a secure network. Exempt from this E-Filing obligation is the Currency and Monetary Instrument Report, usually completed by individuals crossing the border into the United States. FinCEN is accepting comments on this proposal for 60 days after its publication in the Federal Register. For a copy of FinCEN's announcement, please see http://www.fincen.gov/news_room/nr/html/20110914.html.
Depositing of Checks Cashed by Licensees/Registrants
It has come to the attention of the Department that some money transmitters are offering a third-party processing service to check cashers. Rather than depositing checks directly to its own bank account, the check casher scans checks through to the money transmitter, who then advances/sends funds by ACH to the check casher.
This process enables check cashers to use the money transmitter as a conduit to "deposit" checks in order to receive ACHs for the funds more quickly than when depositing directly to their own bank accounts. However, it is not lawful for a check casher to do this. The check casher is required to deposit checks to its account at a depository financial institution pursuant to Georgia law and a Department rule.
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Depositing of Checks Cashed by Licensees/Registrants (continued)
More specifically, O.C.G.A. 7-1-705(c) requires that "[b]efore a licensee or registrant shall deposit with any bank a check, draft, or money order cashed by such licensee or registrant, the same must be endorsed with the actual name under which such licensee or registrant is doing business."
Further, Rule 80-3-1-.02(7) of the Georgia Department of Banking and Finance requires that "[a]ll checks, drafts, and money orders drawn on a financial institution domiciled in the United States and cashed pursuant to a license or registration under Article 4A of Title 7, O.C.G.A., shall be sent for deposit to the licensee's or registrant's account at a depository financial institution domiciled within the United States or sent for collection not later than close of business on the next business day after the date on which the check was cashed."

Upcoming State Holidays

During the next quarter, the Department's offices will be closed in observance of the following State holidays:

Holiday Name

Date Observed

Columbus Day Veterans' Day Thanksgiving Day
Christmas Day

October 10th Monday
November 11th Friday
November 24th Thursday Lee's Birthday observed on Friday, November 25th
December 25th (observed on Friday, Dec. 23rd) Washington's Birthday (observed on Monday, Dec. 26th)

Check Cashing Class
Are you keeping the proper books and records required by law and regulation? Every other month the Department offers a class on the MSB rules to all 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 AntiMoney Laundering requirements. In addition, the Department provides a certificate of attendance which licensees may use as evidence of training received on BSA and Anti-Money Laundering.

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Check Cashing Class (continued) 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.
Upcoming Check Casher Class Dates and Times Tuesday, November 15, 2011, 10:00 AM Tuesday, January 17, 2012, 10:00 AM The one-hour class is held at the Department's main office. The class is limited to a maximum of seven 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.
ADMINISTRATIVE ACTIONS
Order to Cease and Desist Issued to Mohammad Javaid Tufail a/k/a M. Javaid Tufail, Mohammed Javaid Tufail, and Mohamma Javaid Tufail Becomes Final - On July 22, 2011, an Order to Cease and Desist issued by the Department to Mohammad Javaid Tufail a/k/a M. Javaid Tufail, Mohammed Javaid Tufail, and Mohamma Javaid Tufail ("Mohammad Javaid Tufail") of Atlanta, Georgia, became final. Read the entire press release on the Department's website. Revocation of the Check Casher License of Young Choe d/b/a Check Cash Plus Becomes Final - On August 11, 2011, a Notice of Intent to Revoke Annual License ("Notice") became final against Young Choe d/b/a Check Cash Plus, check casher license number 18953, formerly located at 221-A Cleveland Avenue, SW, Atlanta, Georgia 30315. Read the entire press release on the Department's website.
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LICENSE AND REGISTRATION ACTIVITY FOR THE PREVIOUS QUARTER
APPROVED/REINSTATED CHECK CASHERS (License/Registration)
R=Registrant L=Full Service License Page - 7 -

LICENSE AND REGISTRATION ACTIVITY FOR THE PREVIOUS QUARTER
CLOSED CHECK CASHERS (License/Registration)
RD=Registrant Dead LD=Full Service License Dead Page - 8 -

LICENSE AND REGISTRATION ACTIVITY FOR THE PREVIOUS QUARTER
APPROVED CHECK SELLERS AND MONEY TRANSMITTERS
M=Money Transmitter S=Sale of Checks Company
CLOSED/EXPIRED/SURRENDERED CHECK SELLERS AND MONEY TRANSMITTERS NONE
MD=Money Transmitter Dead SD=Sale of Checks Company Dead
CUSTOMER SERVICE STAR FOR THE PREVIOUS QUARTER
Susan Nelson, Applications Analyst The Department received comments from two separate customers stating: "I have to say Ms. Susan Nelson is a huge asset to the Department. She walked me through the whole process. Every time I emailed her, I got a response back in 5 minutes. Very quick follow-up. She was very generous and very helpful. Once again, I thank her and the Department for accepting my license application." AND "Thanks for your assistance. You are absolutely excellent and a credit to the Department of Banking and Finance. It is always a pleasure to speak with you, and know I will get the help I need."
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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 Publications, MSB Newsletter. If you would like to be added to our distribution list, send an e-mail to dbfpress@dbf.state.ga.us stating your name and e-mail address. Please be sure to include "Subscribe to MSB Newsletter" in the Subject line.

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