We have a convenience store customer who we asked to register. After attempting to complete the paperwork, he has decided that it's too much of a hassle and he'll just get out of the check cashing business altogether. His question is - does he still have to register if he documents to us that check cashing will no longer be a part of his business? I truly don't know the answer - can anyone help? Part of me says he still must reigster for previosu activity, but????

This was my understanding as well; however, Banker's Compliance Group states that they do not need to register, and you can document your files accordingly. I would recommend watching the account activity though.

I called FinCEN with this question a few months ago and was told that the business could stop being an MSB by adopting a policy that it would not cash checks in excess of $1,000 in the future and adhering to that policy.

A few weeks later, I had lunch with an IRS MSB expert (the IRS is the primary regulatory agency for MSBs) in Miami. She said that was not true. She said, "Once they become an MSB, they are an MSB forever."

I'm doubtful about the "forever" part, but do believe it makes more sense to say that they cannot change from an MSB to an "un-MSB" just by performing an act of contrition. The FinCEN representative indicated they were going to issue guidance on this point, but that has not happened in the interim.

I suggest you call FinCEN, get your own answer and document the converstation if you do not intend to require them to register. Please note, your monitoring responsibilities do not change appreciably either way.

Thanks ! I'll call today.

They told me if they REGISTER, it's done for two years, they are an MSB. If they have not registered yet, then yes, they can implement the policy and move forward.

My concern would be if they change their policy, and a year from now do it again will you be cited if you do not catch it?

Very good. That's why their registration vs. non registration doesn't affect your monitoring; you would indeed be expected to make certain that they adhered to the policy. Advocating that the customer should be able to remove the MSB label doesn't help your institution, it just makes you the source of the advice the customer will cite for saying why he did not register.

From my comment letter on BSA/AML burden:

The biggest area for clarity is for better definitions, or perhaps a regulatory Commentary on definitions of Money Services Business. The following areas are in dire need of clarification:

1. Check Casher due to meeting the $1,000 per day threshold.

Currently the regulations state that a person is a check casher for cashing checks in excess of $1,000 per person per day. Sometimes a business will inadvertently exceed this threshold. Does this mean the business is forever branded an MSB? There must be some way to "unring the bell" so that businesses are not needlessly forced into registration due to a simple oversight. Perhaps a "Statement of Intent" form can be devised that a business can file with FinCEN where they solemnly swear they will never, ever, ever, do such a thing again.