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#1791141 - 03/04/13 07:29 PM MSB & BSA exam
Ginlyn, CRCM Offline
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Ginlyn, CRCM
Joined: Nov 2003
Posts: 300
Oklahoma
Our customer -- a convenience store owner -- brought papers in today that she had received addressed to the Compliance Officer of xxxx Shop. It was from a BSA examiner with the IRS who was advising our customer that he would be performing a BSA compliance examination of her business on March 14, 2013 at 9:00 a.m. Attached were two pages of documents he was requesting ranging from statements of accounts from banks with signature cards to all Form 4789 Currency Transaction Reports she had filed. This customer is not a registered MSB and for good reason. She rarely cashes checks, never over $1,000 to the same individual (I monitor all of our convenience stores, pawn shops, etc. every week). She does sell money orders, but their limit is $350 and never over $1,000 to the same customer. Does anyone have a clue what is going on here?

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#1791147 - 03/04/13 07:48 PM Re: MSB & BSA exam Ginlyn, CRCM
Jen S Offline
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Minnesota
I have never heard of this before. Do you think this is a legitimate request? Maybe this is a new scam to get account information. Crooks are getting pretty clever in obtaining their information.

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#1791149 - 03/04/13 07:51 PM Re: MSB & BSA exam Ginlyn, CRCM
Elwood P. Dowd Offline
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The IRS is the regulator for MSBs & impersonating an agent would be a federal crime so I don't think it's a good way to phish. The IRS does like to get all of the good out of their forms, but asking for copies of "4789's" is a bit worrisome.

A call to the number listed for the IRS in the phone book should unearth adequate verification. It should also give your customer a chance to point out that she thinks they have made a mistake.
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#1791167 - 03/04/13 08:17 PM Re: MSB & BSA exam Ginlyn, CRCM
John Burnett Offline
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Cape Cod
It was reasonable that your customer came to the bank to try to get clarification of what was purportedly received from the IRS. It would not be reasonable for you to intercede for your customer in attempting to make the contact that Ken has suggested. You don't want to have a dog in any fight that might develop from the correspondence you've seen.
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#1791179 - 03/04/13 08:51 PM Re: MSB & BSA exam John Burnett
Elwood P. Dowd Offline
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Agreed. I was not suggesting your bank should make the call. Banks should not stand in loco parentis for their MSB depositors...ever.
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#1791188 - 03/04/13 09:05 PM Re: MSB & BSA exam Ginlyn, CRCM
John Burnett Offline
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Cape Cod
I haven't heard that Latin phrase used in probably 45 years. That it came from my Kentucky friend is not a surprise (even though he's younger than I).
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#1791199 - 03/04/13 09:11 PM Re: MSB & BSA exam John Burnett
Ginlyn, CRCM Offline
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Ginlyn, CRCM
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Posts: 300
Oklahoma
Thank you for confirming my thoughts of not calling the agent or getting involved, other than to advise our customer to try to contact the agent again (she says she tried to call him once)and explain that they do not meet the requirements of setting up a BSA program for their store. Is that as far as we, as her financial institution, should go?

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#1791203 - 03/04/13 09:17 PM Re: MSB & BSA exam Ginlyn, CRCM
Elwood P. Dowd Offline
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Handing her the phone book was as much support as you needed to offer.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#1791214 - 03/04/13 09:39 PM Re: MSB & BSA exam Elwood P. Dowd
Ginlyn, CRCM Offline
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Ginlyn, CRCM
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Posts: 300
Oklahoma
Thank you all very much for your responses.

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#1791216 - 03/04/13 09:47 PM Re: MSB & BSA exam Ginlyn, CRCM
BFrame Offline
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BFrame
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USA
I once had a state examiner tell a local MSB to call me so I could help him put his compliance program in place.

I don't think so...
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#1791219 - 03/04/13 09:49 PM Re: MSB & BSA exam Ginlyn, CRCM
John Burnett Offline
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John Burnett
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Cape Cod
I trust you contact the state regulator to disabuse that office of any thought that a bank would feel an obligation to offer such assistance.
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#1791222 - 03/04/13 09:57 PM Re: MSB & BSA exam John Burnett
Elwood P. Dowd Offline
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Interagency Guidance published April, 2005

7. Do FinCEN and the Federal Banking Agencies have an expectation that banking organizations should educate money services businesses about any requirements of the Bank Secrecy Act?

No. The Bank Secrecy Act does not require, and neither FinCEN nor the Federal Banking Agencies expect, banking organizations to serve as the de facto regulators of the money services businesses for which they maintain accounts. Accordingly, banking organizations are not expected to educate money services businesses about the Bank Secrecy Act requirements that apply to the industry. However, when a banking organization is conducting due diligence with respect to its money services business customers, questions will inevitably arise. In such cases, banking organizations can direct inquiries by money services businesses about applicable Bank Secrecy Act requirements to existing regulatory resources such as www.msb.gov or FinCEN’s Regulatory Helpline at 1-800-949-2732.

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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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