Skip to content
BOL Conferences Top Gun 23
Thread Options
#698812 - 03/08/07 08:16 PM MSB
CrashDavis Offline
Gold Star
Joined: Jun 2005
Posts: 283
We have a customer that is in the Dry Goods business in a very small community. He is an individual that is in his 70's. He has customers that comes to his business and buys furniture or other merchandise. They may put some items on layaway. When they pay for the items they will give him a social security check or other type of checks this is in excess of 1,000.00 and he will give them cash back. He claims he doesn't cash checks but I believe and I have been told this is cashing checks. We have filed a SAR for him being an unregistered MSB and mailed him letters. He has come to the bank and says he will not register. He said if he continues getting this type of information he will move all his business.(personal and business). He has substantial balances with us including a large trust account.

I know I should file a SAR every 90 days for him being unregistered. My concern is when the OCC does their annual examination and they see we keep the account open and not close will the bank get in trouble with the regulatory.

Your thoughts please

Return to Top
BSA/AML/CIP/OFAC Forum
#699164 - 03/09/07 03:53 PM Re: MSB CrashDavis
TXBSA Offline
100 Club
Joined: May 2006
Posts: 170
TX
"31 CFR 103.11(uu) includes in the definition of a money services business, any person doing business (emphasis added) in the following capacities1:
• “A currency dealer or exchanger (other than a person who does not exchange currency in an amount greater than $1,000 in currency or monetary or other instruments for any person on any day in one or more transactions);” or
1 The definition of a money services business at §103.11(uu)(1)-(5) includes currency dealers or exchangers; check cashers; issuers, sellers, or redeemers of traveler’s checks, money orders, or stored value; or money transmitters. Due to the representations made in your letter, this administrative ruling evaluates only the two capacities with potential relevance to [the business] (currency dealer or exchanger, and money transmitter)."

I do not believe he is a MSB. He is not giving that one person more than $1000 in cash in one day. They are making payments on their merchandise and receiving money back... (this does depend on the $$$ of the check and the $$$ of the payment made.) That being said, I would really monitor the account and close the account if he is conducting MSB transactions. Losing a substantial account is better than having to pay a substantial fine or penalty.

Return to Top

Moderator:  Andy_Z