Quarterly MSB newsletter, Issue 2 (Apr.-June 2014)

Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division
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Inside this Issue:
Important 2 Information for Sellers of Payment Instruments and Money Transmitters
Important 3 Information for Check Cashers
Upcoming 3 Department Presentation at Northwest Georgia
Trade and Convention Center
Upcoming Atlanta 4 Check Cashing Classes
Upcoming 2014 4 State Holidays
Licensing Activity 5 for the 2nd Quarter
Contact Information 6

Law Changes Effective July 1st
The new statutes, effective July 1, 2014, pertaining to Money Service Businesses (MSB), O.C.G.A. 7-1-680 through 7-1709.2, may be reviewed on Georgia's General Assembly's website at the following link: http://www.legis.ga.gov/legislation/en-US/ display/20132014/HB/982
You may access the Department of Banking and Finance's (Department's) Final Rules, effective June 30, 2014, from the Department's website: http://dbf.georgia.gov/sites/dbf.georgia.gov/files/related_files/document/ DBFFinalRules_6-10-2014.pdf
Special Edition Newsletters were issued last month, with information specific to each MSB license type. You may view or download these newsletters from the Department's website: http://dbf.georgia.gov/msb-newsletter.
Please review the newsletters and the law and final rules for changes that affect each license type. Please take note that there have been changes to certain fines and fees. Administrative fines and penalties can be found at Department Rule 80-3-1-.07.
Calendar-Year Annual License Period for All MSB Licenses
The changes to the law extended the annual license year of all check cashers and aligned the renewal period for all MSB license types. As a result, the period for renewal for check cashers, sellers of payment instruments and money transmitters will begin on November 1st and end December 1st. Any license that is not renewed before the close of the late renewal period (on or before December 31) will expire.
This year's renewal period will coincide with the Department's transition of its MSB licenses onto the Nationwide Multi-state Licensing System (NMLS).

"Safeguarding Georgia's Financial Services"

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2nd Quarter 2014

Important Information for Sellers of Payment Instruments and Money Transmitters
SURETY BONDS
There is a new surety bond form on our website http://dbf.georgia.gov/forms-existing-check-sellerlicensees#Surety. You must use the new bond beginning July 1, 2014. Even if you have already increased the amount of your bond to reflect the changes in the law, the new surety bond form must be used. Please update and submit the paper copy of this new surety bond to ensure compliance with O.C.G.A. 7-1-683.2.

For sellers of payment instruments, the minimum surety bond coverage amount will increase to $250,000, and additional coverage requirements will be based on outstandings, to a maximum of $2,000,000. For money transmitters, the minimum surety bond coverage amount will increase to $100,000 and, additional coverage requirements will be based on outstandings, to a maximum of $2,000,000. The number of agents no longer affects the amount of the bond.

SEMI-ANNUAL REPORTS DUE BY AUGUST 14, 2014
For specific instructions, please refer to the notices that were sent out last week. Semi-Annual reports are due by August 14, 2014. Late reports will subject the licensee to a fine of $1,000. The report format has changed; please report the requested information for transactions that occurred January 1, 2014 through June 30, 2014 using the following link: http://dbf.georgia.gov/webform/semi-annual-reporting-sale-checkspayment-instruments-and-moneytransmitter-licensees

Please notify the Department via email (msb@dbf.state.ga.us) regarding any changes in agents or locations. Remember, written notice must be made within 30 days after the licensee engages in business at new locations (including agents). O.C.G.A. 7-1-686(d).

This Semi-Annual Report is the last one that will be filed on a semi-annual basis. All future reports will be filed with the Department quarterly. Further information will be provided before the first quarterly report is due.

CHANGES IN OWNERSHIP, CONTROL AND EXECUTIVE OFFICERS REQUIRE PRIOR APPROVAL
Prior approval is required for any person to become an ultimate equitable owner of any licensee through acquisition or other change in control or become an executive officer of a licensee, pursuant to O.C.G.A. 7-1688. To obtain such an approval, a licensee must file an application with the Department and a pay a $500 application fee. Department Rule 80-5-1-.02(1)(d).

All Georgia money service business licensees will transition to the Nationwide Multi-state Licensing System (NMLS) in the Fall of 2014.
The Department is pleased to announce that it will begin using NMLS to manage our money service business licensees. NMLS is a secure web-based system created by state regulators to provide efficiencies in the processing of state licenses and to improve supervision of state-regulated industries. This year's renewal process for the annual license year of 2015 will coincide with our transition of licensees onto the NMLS. Additional information detailing the process of renewal and transition will be provided.

2nd Quarter 2014

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Important Information for Check Cashers

The Department will no longer issue check casher registrations. All check cashers registrants were converted to licensees, as of July 1, 2014, and all check casher licenses were extended through December 31, 2014.
To print your check casher license, please visit: http://dbf.georgia.gov/print-my-check-casher-license-certificate.
Every check casher licensed with the Department may advertise and may charge fees, as set out in O.C.G.A. 7-1-707(f):

TYPE OF PAYMENT INSTRUMENT/CHECK CASHED
State Public Assistance or Federal Social Security Benefit Payment Instruments/Checks All other checks Personal Check or Money Order, Wallet or Debit Card tied to Individual's Account

FEE LIMITS 3% or $5 (whichever is greater)
5% or $5 (whichever is greater) 10% or $5 (whichever is greater)

Pursuant to Rule 80-5-1-.02(2), check cashers must report additional locations to the Department. Each additional location will be assessed a $50 fee annually.

Upcoming Department Presentation at Northwest Georgia Trade and Convention Center
Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes and Examiner Teresa Koeppel will be speaking on August 12, 2014, at 10:00 a.m. in Dalton, Georgia. This is an opportunity for MSB Licensees to hear about the changes in the law and rules and to ask any questions.
The event will be at the Northwest Georgia Trade and Convention Center (Dalton, GA), in the Blue lecture hall in the upper level of the building. A floor plan of the conference center can be found on its website at: http://www.nwgtcc.com/FacilityInformation/FloorPlans/tabid/646/Default.aspx
Northwest Georgia Trade and Convention Center 2211 Dug Gap Battle Road Dalton, Georgia 30720 800-824-7469/706-272-7676
Email tkoeppel@dbf.state.ga.us to reserve your seat, and be sure to include your name(s), company name and license number. Please review the new law and rules before hand and bring your own materials for taking notes.
If you would like more information but are unable to attend, refer to Page 4 of this newsletter for a listing of the remaining Atlanta classes for 2014.

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2nd Quarter 2014

Upcoming Atlanta Check Cashing Classes
The Department will continue to hold a class at its main office every other month. The class benefits first-time and veteran check cashers. Classes are scheduled on Tuesdays at 10:00 a.m. and generally last about an hour and a half.
Upcoming 2014 Check Casher Class Dates and Times*
July 15th, 10:00 AM September 16th, 10:00 AM November 18th, 10:00 AM
There is no cost for the class and it is a great way to learn about Georgia law, Department regulations, the Bank Secrecy Act (BSA) and Anti-Money Laundering requirements. During examinations, those who have attended the class have stated that the knowledge and information they gained helped prevent violations and avoid the imposition of fines. As a further benefit, the Department provides a certificate of attendance that licensees may use as evidence of training received on BSA and Anti-Money Laundering.
The classes are limited to a maximum of seven attendees, so you must make an advance reservation by calling 770-986-1639 or emailing tkoeppel@dbf.state.ga.us. Reserve your seat NOW! We look forward to seeing you.
* Please note that the class schedule is subject to change

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

Upcoming 2014 State Holidays
Date Observed
Monday, September 1st Monday, October 13th Tuesday, November 11th Thursday, November 27th Lee's Birthday will be observed on Friday, November 28th
Thursday, December 25th Washington's Birthday will be observed on Friday, December 26th

2nd Quarter 2014
CHECK CASHERS
APPROVED OR REINSTATED DURING THE 2ND QUARTER OF 2014

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MONEY TRANSMITTERS
APPROVED OR REINSTATED DURING THE 2ND QUARTER OF 2014

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CHECK CASHERS
CLOSED DURING THE 2ND QUARTER OF 2014

2nd Quarter 2014

Department Contact Information

NAME

E-MAIL ADDRESS

Teresa Koeppel, Administrative Examiner

tkoeppel@dbf.state.ga.us

(Sellers-Issuers of Payment Instruments/Money Transmitters, MSB Exams)

Susan Nelson, Applications Analyst (Check Cashers)

nelson@dbf.state.ga.us

PHONE# (770) 986-1639
(770) 986-1652

Corresponding with the Department
When corresponding with the Department, e-mail communication is preferred. Providing written details in the email 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.
Since the Department's main method of communicating with licensees is via e-mail, it is very important that you supply the Department with a valid e-mail address and that you keep us informed if your e-mail address changes. Please be sure that your e-mail account does not divert Department e-mail to your spam or junk folder.

2nd Quarter 2014
Georgia Department of Banking and Finance
2990 Brandywine Road Suite 200
Atlanta, Georgia 30341-5565
Phone: (770) 986-1633 Fax: (770) 986-1655 or 1029 Email: msb@dbf.state.ga.us

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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/processors, lenders and loan originators, 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.
Our VISION is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented.

We're on the Web! dbf.georgia.gov

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This quarterly 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 email 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.