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#314158 - 02/09/05 01:48 PM MSB Question
Anonymous
Unregistered

We have a customer who owns an ATM and purchases the cash to fund the ATM from us (and makes significant cash deposits as well). I've done some research but am still a little unclear about the definition of a MSB. Would this cusotmer be considered a money service business?
Thanks!

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#314159 - 02/09/05 01:55 PM Re: MSB Question
deppfan Offline
Power Poster
Joined: Dec 2000
Posts: 5,184
All over the map.
Wouldn't that depend on whether or not there was a limit on daily withdrawals from the ATM?

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#314160 - 02/09/05 02:40 PM Re: MSB Question
Anonymous
Unregistered

So if they cannot withdraw more than $1,000, they would not be a MSB? If they could withdraw more than $1,000 then would they be a MSB?

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#314161 - 02/09/05 05:35 PM Re: MSB Question
BankerMama Offline
Diamond Poster
BankerMama
Joined: Jun 2001
Posts: 1,543
We have just such a customer....a real pain to deal with. I talked to the FinCEN about this customer and was told that he is considered a financial institution = an agent for a bank. I was also told that this customer is not exemptable.

No mention was made of the customer being a MSB.
Just to be safe, you might want to make to FinCEN and see if you get the same answer as I

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#314162 - 02/09/05 09:52 PM Re: MSB Question
devsfan Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,927
NYC
I do not believe that an owner of a private ATM is considered an MSB (at least I hope not!).

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#314163 - 04/07/05 07:45 PM Re: MSB Question
Tink Offline
Member
Joined: Apr 2004
Posts: 59
I spoke with FinCEN on the same type of issue and was informed that the customer would be considered a Money Transmitter for purposes of BSA and therefore ineligible for exemption.

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#314164 - 04/07/05 08:07 PM Re: MSB Question
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Don't take any of these suggestions above as "gospel" since each fact situation is different. For instance, you need to know whether a customer's revenue comes primarily from the operation of the ATMs or if this is just a sideline income. That will enter into a discussion of whether the customer might be exemptible (although I would not favor exempting a non-bank ATM operator).

In other words, you probably need to discuss your specific situation with a FinCEN representative or your own regulator. Try to get a response in writing. If you can't, get the representative's name and address, and write that person a detailed description of the telephone conversation and findings, to document what you heard.

I would be interested in figuring out how an ATM operator might be considered a money transmitter, Tink. Or was your issue not about an ATM operator?
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#314165 - 04/08/05 11:02 AM Re: MSB Question
MagicCity Offline

Power Poster
MagicCity
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
Anon, why would this customer be making cash deposits? Don't those ATMs dispense cash only?

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