Does one mistake make a business an MSB?

Question:

We have a commercial customer that cashes checks, but they are not registered as an MSB because they have a policy to not cash checks for one person over $1000 in one day. We found one instance of checks cashed over $1,000 for one person. Are we required to have the customer register as an MSB, or can we verify their check cashing policy and continue to monitor the account for any further instances?

Answer:

I would not recommend that the bank require their registration based on single mistake, especially if it was an instance in which a single individual cashed more than one check at different times during the business day, or with different cashiers.

Instead, I suggest reminding the customer of its own policy and that they will have to register with as an MSB with FinCEN (and possibly the state) if they fail to follow that policy. Then you might consider reviewing the business's check deposits more frequently for a period of time.