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#2113523 - 01/09/17 06:59 PM ATM due diligence
TLS99 Offline
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Joined: Aug 2016
Posts: 55
I am fairly new to doing due diligence on private ATM owners. I am struggling with knowing what all pieces I should be seeing and what I am really looking for.I have a customer who only gets ach in from the ATM service provider and the customer makes cash withdrawals from their account to replenish the ATM. The cash withdrawals This is the only activity in the account. The cash withdrawals are usually $1000 to $2500 more than the ACH deposits per month. I also do not see any ach coming in that would be fee income. I think that since the ach in and the cash withdrawals are similar, that things look pretty legit. I just wanted to get a second opinion.

I am just not sure I completely understand what all I should be seeing and comparing that comes from the ATM side and what to compare it with on the account side. I would really appreciate some feedback.

Thanks,

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#2113531 - 01/09/17 07:25 PM Re: ATM due diligence TLS99
Amandak Offline
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Joined: Jul 2013
Posts: 80
Wisconsin
You are on the right track. I would also get a list of the ATM serial numbers and their locations. The serial number should be in the ACH description so you can match transaction back to the ATM and its location.

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#2113684 - 01/10/17 06:26 PM Re: ATM due diligence TLS99
EB, CAMS Offline
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EB, CAMS
Joined: Mar 2009
Posts: 133
flyover country
You might also look to see if your ATM owners have any registration responsibilities with your state. If so, that is another item you can request/require from ATM owners.
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#2113814 - 01/11/17 02:39 PM Re: ATM due diligence TLS99
TLS99 Offline
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Joined: Aug 2016
Posts: 55
Thank you for your help. I will request that information from the customer and go from there. I appreciate the insight.

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#2114217 - 01/13/17 05:31 PM Re: ATM due diligence TLS99
TLS99 Offline
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Joined: Aug 2016
Posts: 55
I have an additional question on this topic. If there is a business that has an ATM that is owned by a third party and the third party is the one who is responsible for replenishing the cash, what all information should I request from the business? What activity should I be seeing in the account of the business? Would they just be receiving fee income?

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#2114223 - 01/13/17 05:37 PM Re: ATM due diligence TLS99
P*Q Offline

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P*Q
Joined: May 2001
Posts: 8,458
Somewhere
Yes, fee income ACH deposits and we ask for a copy of the contract between the entities verifying this is how the relationship works.

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#2114227 - 01/13/17 05:47 PM Re: ATM due diligence TLS99
Elwood P. Dowd Offline
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Joined: Aug 2001
Posts: 21,939
Next to Harvey
If the machine is owned and serviced by the third party, there may be no significant related activity in your customer's account. Ask your customer what the relationship is.

If the machine's owner is just renting space, ask for a copy of the lease. The payments to your customer may be nominal; e.g. convenience stores like to have ATMs on premise for the same reason they sell lottery tickets, to increase traffic.
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#2114236 - 01/13/17 06:43 PM Re: ATM due diligence Elwood P. Dowd
TLS99 Offline
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Joined: Aug 2016
Posts: 55
Thank you, this helps me a lot.

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#2114599 - 01/18/17 07:07 PM Re: ATM due diligence EB, CAMS
Underthebus Offline
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Joined: Jan 2004
Posts: 78
texas
Where would you find the state requirements for privately owned ATMs. I'm in Texas

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#2114601 - 01/18/17 07:11 PM Re: ATM due diligence TLS99
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
There are none.
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#2114602 - 01/18/17 07:14 PM Re: ATM due diligence TLS99
Underthebus Offline
Member
Joined: Jan 2004
Posts: 78
texas
Thanks!

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