Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division QuarteMrolnythSluy mSummmaarryy ooff MMorotngaegye AScetrivviitciees Bfour sthineePsesrieosd AEncdtiinvgitAipersil 2007 for the Period Ending June 30, 2017 Inside this Issue: NMLS Electronic 2 Surety Bonds Notice of Final 3 Rulemaking Changes in Control 3 - Ownership and Management Georgia New 4 Application and Amendment Checklists Upcoming Atlanta 4 Check Cashing Classes Upcoming Dalton 4 Check Cashing Class Upcoming 2017 5 State Holidays Contact Information 5 APPENDIX: MSB Activity by Current License Status NMLS Money Services Businesses Call Report and 2nd Quarter 2017 Quarterly Reporting The Department adopted the NMLS Money Services Businesses Call Report (MSBCR) functionality for submission of routine financial and transactional reporting requirements by Seller of Payment Instrument and Money Transmitter Licensees. The NMLS MSBCR is a mandatory filing for Seller of Payment Instrument and Money Transmitter Licensees and is due 45 days after the quarter end (August 14, 2017). Licensees should follow the instructions and directions provided by NMLS for completing the MSBCR requirement, in addition to updating the Uniform Authorized Agent Report. Licensees will also be required to continue to submit Average Daily Balance of Outstandings directly to the Department, outside of the NMLS, through the existing webform. All updates and resources will be posted on the MSB Call Report page on the NMLS Resource Center. Likewise, the Department will continue to communicate with its licensees for reporting requirements outside of NMLS. In addition to completing the Department's webform, agent/office information must be uploaded via the UAAR in the NMLS to complete your quarterly reporting. If you have no agents or offices, you must still report through the NMLS. Questions regarding the UAAR should be directed to the NMLS Call Center at 1-855-NMLS-123 (1-855-665-7123). Please complete and submit all reports by August 14, 2017. Licensees that fail to file all required reports by the deadline will be assessed a fine of $1,000 and may subject their Georgia license to revocation. If you have additional questions, please e-mail the Department's MSB Section at msb@dbf.state.ga.us. Page 2 2nd Quarter 2017 NMLS Electronic Surety Bonds All new applicants for a money transmitter or seller of payment instrument license must utilize the Electronic Surety Bonds (ESB) feature through the NMLS to meet Georgia's surety bond requirements. For existing licensees, electronic bond conversion has begun. The deadline for conversion is December 31, 2017. Please refer to the ESB for Licensees resources on NMLS found at: http://mortgage.nationwidelicensingsystem.org/Pages/ESBforNMLSLicensees.aspx. Bonds for Existing Company Licensees Must be Marked "Converted" When creating an ESB through NMLS, the surety entity has the option of choosing a new or a converted bond. Before delivering an ESB to the Department, existing licensees should ensure that the surety entity submits a converted ESB through NMLS. If the licensee finds that the bond is not a converted bond, the company user should use the Return to Surety functionality to return the bond to the surety entity prior to delivery to the Department. The converted bond is the conversion of a licensee's paper bond, including any associated riders for such paper bond, issued outside the NMLS (collectively referred to as "original bond") into an electronic form. The bond number on the ESB should be the same as the number that appears on the original bond form that was submitted in hard copy. The amount of the ESB must represent the current bond obligation, including all riders issued since the original date of the bond. Bond Execution and Delivery to the Regulator: Georgia requires that a Control Person (MU2) be designated as a signatory for the ESB execution process. Once the Control Person has signed the bond, the bond must be marked "Ready" by a company user. Marking a bond "Ready" indicates an executed original or converted bond is ready for delivery to the regulator. To complete the bond submission process, the company user must return to the company account and complete the Mark Ready process to prepare the bond for submission to the regulator. If the corresponding license request has not yet been submitted, the bond is delivered to the regulator immediately upon submission of the license application. Bonds that have been delivered will no longer show on the Bonds Pending Action page. Companies may find the following resource helpful in ensuring that they have properly executive and delivered the bond to the regulator--http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/ Bond%20Execution%20(Company).pdf COMMONLY USED ACRONYMS CC -- Check Casher License Department -- Ga. Department of Banking and Finance ESB -- Electronic Surety Bond MSB -- Money Services Business MSBCR -- Money Services Businesses Call Report MT -- Money Transmitter License NMLS or NMLSR -- Nationwide Multistate Licensing System & Registry O.C.G.A. -- Official Code of Georgia Annotated SPI -- Seller of Payment Instruments License UAAR -- Uniform Authorized Agent Report 2nd Quarter 2017 Page 3 Notice of Final Rulemaking On Thursday, June 29, 2017, the Department of Banking and Finance (Department) adopted Final Rules. The Rules were filed with the Secretary of State on June 29, 2017 and, pursuant to O.C.G.A. 50-13-6, will be effective on July 19, 2017 which is twenty days (20) following the filing of the Rules with the Secretary of State. Prior to adopting the Rules, the proposed Rules along with a synopsis were distributed on May 25, 2017. The Department received four (4) written comments regarding the proposed Rules. The Department fully considered the comments it received and made substantive revisions to proposed rule 80-13-1-.02 in response to the comments. The Department believes that the Rules as adopted encourage safety and soundness, and conform to the law. To view or download the Final Rules, go to Regulations page on the Department's website (https:// dbf.georgia.gov/dbf-regulations) and select the appropriate link for the Final Rules, OR you may access them directly from: 2017 DBF Final Rulemaking: 6-29-17 Changes in Control - Ownership and Management Licensed MSBs must submit a written request for approval by the Department prior to any proposed changes in ownership, control persons, or executive officers. The changes that must comply with this requirement are those in which a person will directly (or indirectly) own or control 10 percent or more of the business organization. It also affects those changes in which a person will exert control over the organization, regardless of whether such person directly or indirectly owns a stake in the organization. Control is defined as directly or indirectly having the power to direct the management or policies of the licensed entity. The written request for the Department's approval must be submitted 30 days prior to the date of proposed change AND the proposed change cannot take effect without written approval from the Department. A non-refundable $500 application fee will be assessed by the Department via an Agency Fee Invoice through the NMLS upon receipt of the related jurisdictional documents for the requested change. In the event that the proposed change becomes effective without the Department's approval, a fine of $1,000 will be assessed. In addition to a fine, the Department may initiate an administrative action against the licensee. Please keep in mind that the submission of an amendment through the NMLS for an Advance Change Notice (ACN) does not constitute the required written request to the Department for prior approval of the proposed change. For additional guidance/instructions on how to submit a written request, please follow these links to the appropriate Amendment checklist on the NMLS: Georgia Check Casher License Amendment Georgia Money Transmitter License Amendment Georgia Seller of Payment Instruments License Amendment Page 4 2nd Quarter 2017 Georgia New Application and Amendment Checklists Please visit the NMLS Resource Center for our most current checklists and jurisdictional forms. When making any change to your NMLS record, please consult the appropriate Amendment checklist. Using outdated forms will delay the processing of applications and other approval requests. Georgia Check Casher License Georgia Money Transmitter License Georgia Seller of Payment Instruments License New Application Amendment New Application Amendment New Application Amendment Upcoming Atlanta Check Cashing Class The Department offers a check cashing class that benefits first-time and experienced check cashers. These classes generally last about an hour. 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 ("AML") 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 770-986-1652 or emailing msb@dbf.state.ga.us. Reserve your seat now! We look forward to seeing you. Upcoming Atlanta Check Casher Class* September 6, 2017, 10:00 AM December 6, 2017, 10:00 AM * Please note that the class schedule is subject to change Upcoming Dalton Check Cashing Class The Department will be holding a check cashing class in Dalton, Georgia on Tuesday, September 19, 2017, from 10:00 AM - 12 PM (Sign in will begin at 9:00). The class will be held at the Northwest Georgia Trade and Convention Center, 2211 Dug Gap Battle Road, Dalton, Georgia 30720. The class will take place in the blue lecture hall in the upper level of the building - see the map of the building below for the Northwest Georgia Trade and Convention Center. Please refer to their website for more details about the location http://www.visitdaltonga.com/convention-center/ plan-your-meeting/our-facility/floor-plans/ To reserve a seat, please contact us at 770-986-1652 or send an email to msb@dbf.state.ga.us. 2nd Quarter 2017 Upcoming 2017 State Holidays--State Offices Closed Labor Day -- Monday, September 4th Columbus Day -- Monday, October 9th Page 5 Department Contact Information NAME Fernando Ornelas, Supervisory Examiner Ana Contreras, Senior Assistant Financial Examiner Byron Larios, Assistant Financial Examiner E-MAIL ADDRESS fornelas@dbf.state.ga.us acontreras@dbf.state.ga.us blarios@dbf.state.ga.us PHONE# (770) 986-1313 (770) 986-1652 (770) 986-1639 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. Page 6 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 2nd Quarter 2017 The Department is the state agency that regulates and examines Georgia statechartered banks, state-chartered credit unions, and state-chartered trust companies. The Department also has responsibility for the supervision, regulation, and examination of Merchant Acquirer Limited Purpose Banks (MALPBs) chartered in Georgia. In addition, the Department has regulatory and/or licensing authority over mortgage brokers, lenders and processors, mortgage loan originators, check cashers, sellersissuers of payment instruments, money transmitters, 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 a willing and able partner with our regulated entities in order to support vibrant economic growth and prosperity in Georgia. Sign-up to Receive this Publication This quarterly publication highlights topics and activities pertaining to the Department's regulation of state-licensed Money Service Businesses (MSBs). Notification is delivered to interested parties via e-mail. Licensee primary contacts are automatically subscribed to receive Department publications appropriate to their particular industry. If you would like to be added to our distribution list, please go to our homepage (dbf.georgia.gov) and look for the Stay Connected e-mail subscription box. This will take you to our new subscription service provided by GovDelivery (also known as Granicus). Notifications regarding subscriptions will originate from Department of Banking and Finance GADBF@public.govdelivery.com. APPENDIX License Status Approved Denied Revoked Terminated Expired Terminated Ordered to Surrender Terminated Surrendered/Cancelled Definition The entity has an Approved licens e. The entity applied for a licens e and the reques t was Denied. The entity's licens e was Revoked and the entity is no longer authorized to conduct business. The entity failed to renew. An entity has been ordered to s urrender their approved licens e. The entity is not authorized to conduct busines s. The entity has reques ted a s urrender/cancelation of their licens e and the regulator has granted this surrender/ cancelation request. MSB ACTIVITY BY CURRENT LICENSE STATUS GA Check Casher License Approved NMLS# License# Company Name 1240338 29767 MIRA ENTERPRISES 1601176 55881 YOG Foodmart LLC 1447496 49215 D & G Burke Dawgs LLC 1241265 18252 JJoy Cashing Checks Services, L.L.C. 1576462 55836 KRISH FOODS LLC 1595032 56072 GRICELDA ULLOA PIERCE 1612352 55969 SHREE GAJKARNA CORPORATION 1585073 56178 Geeta Managment Llc 1572926 54041 Happy N Joy INC 1377288 46690 Happy Go Lucky, Inc. 1622807 56424 Pritam enterprises llc 1557653 54856 SAT JALARAM 1574882 56350 MEMORIAL EXPRESS INC 1622111 56485 khodiyar seven corp. 1256032 44363 BACONTON INVESTMENTS INC 1605660 56774 RED LATINA LLC 1622132 56718 R & C Solutions LLC 1634670 57005 AIS BUSINESS INC 1637066 57025 Tienda La Union 1636961 56924 Guru Mata Llc Date 04/03/2017 04/03/2017 04/10/2017 04/12/2017 04/13/2017 04/18/2017 04/20/2017 04/20/2017 05/01/2017 05/08/2017 05/08/2017 05/08/2017 05/22/2017 05/24/2017 05/26/2017 05/30/2017 06/13/2017 06/16/2017 06/16/2017 06/22/2017 City BERLIN Blackshear Waynesboro Gainesville AMERICUS GAINESVILLE DAWSONVILLE Lawrenceville Macon Marietta savannah FITZGERALD DECATUR woodbine VALDOSTA MARIETTA Valdosta Austell Calhoun NEWNAN State GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA Appendix 1 of 2 1644910 1611337 57227 57040 Wild 3434 Inc LODHI 9 FOOD MART LLC 22 Terminated - Expired NMLS# License# 1264213 41937 NAZA Food Inc. Company Name 1 GA Money Transmitter License Approved NMLS# License# Company Name 1533796 53148 BRAZJET EXPRESS INC. 1353190 53427 Klarna Inc. 1567523 56242 Lifeline Legal Funding LLC 1168701 1561676 54666 55786 Finxera, Inc. Nairagram LLC 5 GA Seller of Payment Instruments License Approved NMLS# License# Company Name 1573723 55968 Clark, Sharp & Reynolds, LLC 1574869 1380271 55787 55996 Wyre Payments, Inc. DFS GSD Corp. 1584874 56693 Mercury Service Group LLC 4 Terminated - Surrendered/Cancelled NMLS# License# Company Name 1214068 43826 CMO, Inc. 1 06/28/2017 Columbus GA 06/28/2017 MABLETON GA Date 04/04/2017 City Macon State GA Date 04/06/2017 05/03/2017 06/01/2017 06/26/2017 06/28/2017 City Deerfield Beach Columbus Atlanta San Jose Suwanee State FL OH GA CA GA Date 04/21/2017 06/02/2017 06/12/2017 06/19/2017 City Fort Worth San Francisco Phoenix Hauppauge State TX CA AZ NY Date 06/16/2017 City Melbourne State FL Appendix 2 of 2