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#1276627 - 10/28/09 10:37 PM MSB Acting as an agent
Lele Offline
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Lele
Joined: Feb 2007
Posts: 827
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We have a gas station that sells money orders and says they are considered a seller for a business that authorizes them to sell money orders. I have never had this situation though have several MSBs, and while I have been reading about them I am not clear on what the bank should require from this customer if anything. I would think that we would require proof, but what? A copy of the agreement with the other business and what kind of monitoring would be required?
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#1276665 - 10/29/09 09:39 AM Re: MSB Acting as an agent Lele
Elwood P. Dowd Offline
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Your customer is a non bank financial instituion (NBFI). If their check sales exceed $1,000 per person on any given day, they are a money service business. However, you would treat them as an agent for a money service business.

Your monitoring would be the same as that you impose on any customers that provide financial services and would incorporate your verifying their status as an agent for an MSB. A copy of the contract should suffice. You might also look at the principal's web site and verify that your customer is listed there.
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#1276950 - 10/29/09 04:39 PM Re: MSB Acting as an agent Elwood P. Dowd
Georgia Plum
Unregistered

Ken, if an MSB is an agent for Sigue Corp. (Latin American Money Transfer System) and sells money orders as an agent, but does not cash checks at all, are they required to register as an MSB?

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#1277020 - 10/29/09 05:58 PM Re: MSB Acting as an agent
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
There are 5 activities that make a customer an MSB (not all require registration), but one is acting as a seller of checks:

(4) Seller or redeemer of traveler's checks, money orders, or stored value. A seller or redeemer of traveler's checks, money orders, or stored value (other than a person who does not sell such checks or money orders or stored value in an amount greater than $1,000 in currency or monetary or other instruments to or redeem such instruments for an amount greater than $1,000 in currency or monetary or other instruments from, any person on any day in one or more transactions).

However, if they sell as a agent for a registered MSB they are not required to register themselves.
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#1277091 - 10/29/09 07:02 PM Re: MSB Acting as an agent
edAudit Offline
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edAudit
Joined: Jul 2008
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Georgia Plum

Fyi

I remember something about the company mentioned see fincen

http://www.fincen.gov/news_room/nr/html/20080128.html
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#1277135 - 10/29/09 08:15 PM Re: MSB Acting as an agent edAudit
Georgia Plum
Unregistered

EdAudit, Yeah, I was aware of that. Supposedly the deficiencies have been corrected. Until someone makes them stop doing business in the US, don't know that I can control anything other than making sure my end is straight.

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#1277207 - 10/29/09 09:47 PM Re: MSB Acting as an agent
Lele Offline
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Lele
Joined: Feb 2007
Posts: 827
In the Sun
I read that a way to ensure they did not sell a money order for $1000 or more , that some companies have on the MO, 'not good for more than $300'. But what is to stop them from selling 3 $300 MO and 1 - $100? If they prove by copy of contract that they are only an agent then just normal monitoring of a high risk business would be needed? We charge a flat fee for MSBs because for one thing, all of the monitoring we do, and keeping extra cash on hand,etc. I guess that if they state that they are an agent and provide proof then we take their word for it and it ends there?
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