Thanks for the concern; I actually looked into this initially because I thought she WAS in violation. After speaking with several people in law inforcement in the state she's in, I came to find out this is common there and as long as they have the proof of business to back it up, it's fine. She's even got the business its own TIN, and we completed CIP, so she's okay. Her transactions are all checks and money orders from people that list their phone numbers at the bottom, and the amounts are small (less than $30). When I did reverse lookups on the numbers on the money orders and checks, every single one of them was a cell phone.
We're still monitoring the account for weirdness, however, because Googling resulted in lots of ripoff reports for these types of providers.
Oh, and I don't know the legal reason why inmates can't call cell numbers, but it's posted on several of the jail/prison websites that it's not allowed.