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#271593 - 11/05/04 03:10 PM
MSB - Exceptions
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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Does anyone know if there are any exceptions for being a MSB? For example, if the public school system cashes its paychecks for its employees, could this be an exception? And if so, is it because they are cashing their own paychecks OR would it be because they are public funds?
Any other exceptions you care to share would be appreciated.
Thanks in advance.
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#271595 - 11/05/04 06:33 PM
Re: MSB - Exceptions
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100 Club
Joined: Apr 2002
Posts: 101
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I have read that a customer who cashes checks totaling more than $1,000 in one business day would be considered a money service business.
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#271597 - 11/05/04 09:05 PM
Re: MSB - Exceptions
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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Thanks Magic. That is what I was thinking too. It is so reassuring when someone (anyone) agrees with you. (That doesn't happen often in this job. Except here )
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#271598 - 11/05/04 09:48 PM
Re: MSB - Exceptions
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Gold Star
Joined: Jun 2004
Posts: 290
California
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We have also been told by FINCEN that cashing your own payroll checks for your employees does not make you a check casher (or MSB).
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#271600 - 11/08/04 09:46 PM
Re: MSB - Exceptions
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100 Club
Joined: Dec 2003
Posts: 102
West Coast
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cute!
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#271601 - 11/23/04 02:59 AM
Re: MSB - Exceptions
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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What about a furniture store that runs those tax refund sales? Buy some furniture and we will cash your check for you. They may cash a few checks with over a $1,000 cash back, but this is hardly how they make a living and they are not charging a fee for it. Are you classifying them as an MSB?
Thanks,
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#271602 - 11/23/04 07:50 AM
Re: MSB - Exceptions
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Power Poster
Joined: Jun 2001
Posts: 8,272
Where the heart is
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Quote:
What about a furniture store that runs those tax refund sales? Buy some furniture and we will cash your check for you. They may cash a few checks with over a $1,000 cash back, but this is hardly how they make a living and they are not charging a fee for it. Are you classifying them as an MSB?
Thanks,
They meet the test. I don't see how you can't UNLESS you can prove that the cash back was less than $1,000 (the rest going to the furniture) which is a documentary burden to say the least. I am thinking you will need a policy statement signed by the owners as well as a invoice to check match-up for any 3rd party check in excess of $1,000 in order to show the merchandise was the majority exhange, and cash-back was under $1,000. The cost for this kind of monitoring and audit will most likely make this account not profitable for you.
And I know that these stores will be offended, to say the least, when you tell them they are a Money Services Business and must register.
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CRCM,CAMS Regulations are a poor substitute for ethics. Just sayin'
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#271603 - 11/23/04 08:55 PM
Re: MSB - Exceptions
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Anonymous
Unregistered
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OMG --- another category of customers to watch!
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#271604 - 11/24/04 04:31 PM
Re: MSB - Exceptions
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Anonymous
Unregistered
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This question has been addressed here earlier. When I called FinCen, I was told that the reg does not exclude employers who cash their own payroll checks. Therefore, if they cash a check for over $1000 for their employee, they are a money services business.
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#271606 - 11/26/04 05:57 PM
Re: MSB - Exceptions
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Diamond Poster
Joined: Nov 2000
Posts: 1,820
Southern California
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I disagree with the anonymous poster about a company cashing their employees paychecks. I asked our regulator (FDIC) the same question and I was told that the check cashing service needed to be available to the public. It simply doesn't make sense for to consider this type of check cashing MSB activity.
Sometimes the answer we get is determined by HOW we ask the question. I would call again and speak to another person for their take on this, but you can see from this post that many of us do not agree with this opinion.
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Dolly Nugent CRCM Opinions expressed are my own.
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#271608 - 12/02/04 05:37 PM
Re: MSB
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New Poster
Joined: Jun 2002
Posts: 11
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Does anyone have guidelines for how we monitor our customers to determine if they are MSB's? Thanks!
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#271609 - 12/02/04 08:11 PM
Re: MSB
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Gold Star
Joined: Nov 2004
Posts: 313
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Sorry, I don't, but I am in need of some good guidelines to get me started in LOOKING for any possible MSB's that we have accounts with. If you get some guidelines, would you please share with me too?
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#271610 - 12/02/04 08:34 PM
Re: MSB
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Diamond Poster
Joined: Nov 2000
Posts: 1,820
Southern California
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First look for businesses that make large cash withdrawals on a regular basis. They need cash to offer check cashing services. Then get your tellers and operations officers to look at deposits. Look for evidence that your customer is cashing checks for individuals. Then determine if the customer meets the definition of a MSB.
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Dolly Nugent CRCM Opinions expressed are my own.
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