Thread Options
#1616011 - 10/14/11 06:09 PM "Profitable" MSB Account
brice Offline
New Poster
Joined: Jan 2005
Posts: 8
Texas
We have recently acquired branches in a metro area which had several MSB accounts. In the past, we have only small check cashing companies. I know we will spend more time and effort with these accounts, and the risk is certainly there. Can anyone share with me a service charge routine that has been accepted by examiners and tends to help these accounts become profitable?

Return to Top
BSA/AML/CIP/OFAC Forum
#1616037 - 10/14/11 06:45 PM Re: "Profitable" MSB Account brice
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,138
New York City
Have you put them on analysis?
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top
#1616038 - 10/14/11 06:46 PM Re: "Profitable" MSB Account ACBbank
brice Offline
New Poster
Joined: Jan 2005
Posts: 8
Texas
We have them on our regular analysis -- but because of the extra monitoring and extra cash they are using, we are trying to come up with an analysis just for this type account.

Return to Top
#1616040 - 10/14/11 06:49 PM Re: "Profitable" MSB Account brice
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,138
New York City
I have seen fees range from a couple hundred dollars to over $4,000 per month. Sadly, I don't know the formula these banks used though.
Last edited by ACBbank; 10/14/11 06:51 PM. Reason: spelling
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top
#1616042 - 10/14/11 06:51 PM Re: "Profitable" MSB Account ACBbank
brice Offline
New Poster
Joined: Jan 2005
Posts: 8
Texas
That's what I have heard also -- just trying to find out some of their formulas!

Return to Top
#1616046 - 10/14/11 06:56 PM Re: "Profitable" MSB Account brice
What?? Offline
100 Club
What??
Joined: Feb 2007
Posts: 170
California
We base the risk on the level of 3rd party checks deposited monthly. Give me your emial address and I will send you what we have.

Return to Top
#1616117 - 10/14/11 08:00 PM Re: "Profitable" MSB Account What??
brice Offline
New Poster
Joined: Jan 2005
Posts: 8
Texas
beverly@cbtx.com

Thanks!!

Return to Top
#1616121 - 10/14/11 08:06 PM Re: "Profitable" MSB Account brice
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Be very very careful of discussing specific pricing parameters with other financial institutions as that is generally prohibited.

With respect to the risk of third party checks, many institutions require a pledge of collateral, such as a Time Deposit, to cover the endorsement failure risk. The requirement is that the account must be maintained at least a year to three years after the last 3rd party check is deposited.

With respect to a monthly service fee, you really need to take a look at the expense the bank will incur for the additional monitoring, due diligence work, etc. and charge accordingly.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top
#1616160 - 10/14/11 08:53 PM Re: "Profitable" MSB Account Princess Romeo
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,138
New York City
This is a public forum Brice. You may want to take down your email and PM it to SQ.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top

Moderator:  Andy_Z