We have visited all of our customers that are potential MSB's and most have told us that they do not and would not cash a check for one person over $1,000 in a day.

Today one of these customers came into a branch and said that they had gotton very busy at the store and she had cashed two checks for a customer that together were over $1,000.

Are they now required to register as an MSB? When we mention that they would have to register they always seem to get frantic and state that they would not do it again. What should our next step be?

Thanks.

Your customer would not have to register as an MSB if it follows FinCEN's guidance on registration and de-registration of MSBs. Look at section III on page 3 in particular. AR.

To add to what AnonRegulator stated, your customer would not have to register as an MSB as long as they do not act as an MSB. However, you do need to file a SAR on your customer for acting as an unregistered MSB. We were advised of this by our regulator in our last BSA exam.

Your regulator is a little quick on the trigger...an MSB has 6 months to register and there would be no violation if they either registered or repented (per the guidance) in that period.

Since this customer brought it to the attention of the bank immediately and will probably be willing to follow the guidance, there is nothing suspect about the activity. Joeball might want to review a decision not to file with the EIC from his last exam and the odds are that his EIC has some sense.

Ken, Thanks for the information. It is too late for last year's exam, but I will keep the information for future. Thanks again.

Thanks everyone.