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#579421 - 07/05/06 06:27 PM Is This Activity Normal? - MSB and M.O.
Purex Offline
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Joined: Oct 2005
Posts: 181
South
Have a MSB customer which is a casher, seller, and redeemer of money orders, and checks. I have been looking through their deposits and have found where the customer in issuing their business money orders and depositing them. On several occasions they are issuing themselves up to 5 to 6 in different amounts and then depositing them into their account. Is this normal activity? Help any advice would be appreciated.
Last edited by Ken_Pegasus; 07/05/06 10:21 PM.
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Deposits and Payments
#579422 - 07/05/06 08:03 PM Re: Is This Activity Normal?
RBanker Offline
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RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
One question - does this MSB do any other activity - convenience store, gas station, liquor store - where they might be "selling" the cash to the check cashing side of the store, to increase their available cash for check cashing? That's the only thing I can think of.
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#579423 - 07/05/06 08:14 PM Re: Is This Activity Normal?
Purex Offline
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Joined: Oct 2005
Posts: 181
South
Yes, they are a convenience store, gas station. Can you explain to me how they would be selling the cash to the check cashing side of the store, I have never heard of the form of operation? Thanks
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#579424 - 07/05/06 08:20 PM Re: Is This Activity Normal?
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
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Essentially the same way one teller would sell cash to another for change, in this case it is a cash exchange with payment in MOs (possibly, we don't know that). Check cashing side needs cash, has money in bank, provides MO to store side, gets cash in return.
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#579425 - 07/05/06 10:09 PM Re: Is This Activity Normal?
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
Be careful with this. I would check with the MSB (western union or whomever) to see if the store is allowed in any fashion to buy their own money orders. Some MSB's have strict policies against this and can be withdrawn as an authorized agent.

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#579426 - 07/06/06 12:28 AM Re: Is This Activity Normal? MSB and M.O.
JustASquirrellTryinToGetANut Offline
Member
Joined: Jun 2006
Posts: 72
They need to be registered with FINCEN...I am surprised that there are still banks out there that will house these MSB's accounts. It is such a liability regarding money laundering and most of your larger banks are now ceasing to operate in this way.

Don't edit my posts John
Last edited by JustASquirrellTryinToGetANut; 07/08/06 01:29 AM.
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