NBFIs - TRUE definition

So - searched all the forums & couldn't find anything specific to this situation.

I've always known that an Insurance Company could be an NBFI based on what products they sell, but an Agent for an insurance company is not an NBFI (thinking State Farm vs a State Farm Agent).

Vehicle Sales - I've only flagged as an NBFI if they do their own financing (think Toyota vs Wonder Woman's used car dealership where I partner with a CU to do the financing).

However - I can't find this stipulation in any writing anywhere. Can someone help? Exam Manual is so generic & the underlying reg doesn't even get into the detail I need.

But I don't think it's right to flag all Vehicle Sales as NBFIs - correct?

I need sources.

31 USC 5312(a)(2) defines "financial institution," and includes "A business engaged in vehicle sales, including automobile, airplane, and boat sales."

That's the simple answer, but in terms of assessing risk I think your line of thinking is exactly right. Selling a car is certainly different from issuing credit.

Technically, an NBFI should be any business that meets the definition in §1010-100(t) of financial institution, but is not a bank as defined in §1010-100(d).

Thank you John!

So how do I unexplain (or undefine) 31 USC 5312(a)(2) defines "financial institution," and includes "A business engaged in vehicle sales, including automobile, airplane, and boat sales." ?

The Exam Manual doesn't point to §1010-100(t) anywhere ... or am I missing it?

https://bsaaml.ffiec.gov/manual/Appendices/05