We have a convenience store that has opened a new account with our bank. They indicated to us that that are not going to cash checks over $1,000, not going to sell money orders and are not going to sell store value cards but they will have a ATM in the store that they own. Will this qualify them as a MSB?

Thanks

Having an ATM does not make a business an MSB. Only transacting business in the following way makes them an MSB:

Issuer/Seller/Redeemer of money orders or traveler's checks (over $1,000 per customer per day)
Money transmitter (any amount)
Check Cashing (over $1,000 per customer per day)
Dealer in foreign exchange
Provider/Seller of prepaid access (over $1,000 per customer per day)

This is sort of the basic guide; obviously if the customer is an agent for these above mentioned transactions (other than check-cashing), then they aren't required to register as an MSB. They would simply have to provide proof of agent status.

FWIW, my previous bank monitored businesses with ATMs as part of our "MSB" monitoring; they were kept as a separate type of business but it was a risk-based thing.

Thanks. I thought they would not be a MSB. I am planning putting this account on a risk based review. Thanks for you help.

If they will be responsible for replenishing the cash in the ATM you will need to know where the cash is coming from. You should request a copy of the ATM agreement that they have with their service provider since the agreement will outline various things including who repelnishes the cash. If it is your customer, you will want to see the daily ACH credits for the ATM usage so you will know how much cash is involved and you will need to either see cash withdrawals to match the ACH credits or know that their day-to-day business can generate enough good quality bills for the ATM.