Cashing Checks for a Fee, Register as an MSB?

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Question:

If a grocery or convenience store states, in writing, that they will no longer cash checks (for free) of $1,000 or more, must they register as an MSB? Is it, once an MSB, always an MSB?

Answer:

The presence or absence of a fee is not an issue in whether a check casher is an MSB. The issue is whether they cash checks in excess of $1,000 for a person on the same day.

As for whether a customer that meets the definition of an MSB can change its stars and not be an MSB any more simply by adopting a policy to stay below $1,000, to date (5/09/05), I have been offered three theories:

*Yes, as long as they actually do stay below $1,000 in their future transactions. (FinCEN expert)
*Yes, as long as they stop cashing checks altogether. (FDIC employee described as regional expert) *No. (IRS MSB expert)

Personally, I think the IRS interpretation is the most logical and the FDIC interpretation is of the least value. (The FDIC isn't empowered to interpret BSA.) FinCEN has unofficially indicated they will issue an opinion dealing with this issue. At present, this is simply a question without an answer.

First published on BankersOnline.com 6/20/05