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#1496605 - 01/18/11 08:32 PM MSB Customer Discussion
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I'm preparing for a "chat" with one of our customers that appears to meet the definition of an MSB, so that he is aware of the regulation and his reponsibilities.

I'm bringing a copy of FinCEN Form 107 (MSB Registration), as well as the definition of an MSB (and exceptions).

His only apparent MSB activity is the cashing of checks for locals and 'occasionally' exceeding the $1,000 per person per day limit.

Any thoughts as to how the tone should go (e.g., you can't keep your account with us if you keep up this activity, stay under $1,000 per person per day and you don't have to register, etc., etc.)? I want to balance the discussion, but also want to be cautious about appearing to advise him in any way. Or is it best just to explain the situation and let him ask any questions he has about transaction activity?
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#1496612 - 01/18/11 08:34 PM Re: MSB Customer Discussion Doug Hendrickson
SnowRed Offline
Junior Member
Joined: Oct 2010
Posts: 42
East Coast
I know you will be extremely careful with your discussion. I would make him aware of the rules, by providing him with FINCEN guidance and perhaps give him a hard copy or webaddress of the FINCEN MSB FAQs or something like that. I would not advise him on his business practices one way or another, just make him aware of the rules.

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#1496672 - 01/18/11 09:23 PM Re: MSB Customer Discussion SnowRed
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
We have run into this situation many times. We advise them of the rules and provide them the materials you have listed and direct them to the website.

If they decide not to register, you should definitaly put the account on some type of watch list to make sure they do not continue the behavior while they are with your financial, particularly as you are aware of there activity.

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#1496685 - 01/18/11 09:42 PM Re: MSB Customer Discussion Midwest Banker
ACBbank Offline
Power Poster
Joined: Jul 2006
Posts: 4,159
New York City
I have had conversations with both FinCEN personnel and IRS Agents regarding this very topic. Both want SAR's filed if you have reason to suspect an MSB is not registered with FinCEN and does not meet one of the exceptions.

Is this relationship really worth the potential problems with your regulator?
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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#1496697 - 01/18/11 09:56 PM Re: MSB Customer Discussion ACBbank
edAudit Offline
Power Poster
Joined: Jul 2008
Posts: 4,766
You are here
Expected activity, checks cashed for $950-$999. I would go with the Fincen brochure/website and monitor monitor monitor. SAR if necesSARy. Possible SAR depending on conversation.
As stated by ACB

Is this relationship really worth the potential problems...
Opinions can be considered as coming from anywhere but my employer.


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