Examination information, faq’s, and resources for Washington Check Cashers and Payday Lenders.
The ManagerвЂ™s Questionnaire is provided for the licensee just before a routine assessment. The ManagerвЂ™s Questionnaire is finished by the licensee and came back towards the Department before the assessment.
Typical Examination Findings
Responses to questions that are common exams carried out by DFI.
What exactly is a cash solutions company (MSB)? Have always been we an MSB?If you might be certified beneath the Check Cashers and Sellers Act, you might be an MSB beneath the Bank Secrecy Act. Check always Casher and Seller licensees are MSBs when they participate in money transmission, check cashing (as long as the licensee cashes checks over $1,000 for almost any anyone in every 1 day), check selling (as long as the licensee offers checks or cash requests over $1,000 for just about any anyone in every 1 day), or offering kept value (only when the licensee sells kept value over $1,000 for almost any one individual in almost any one day). Just what does this suggest for your needs? If you should be an MSB, your online business might be at the mercy of extra guidelines and regulations.
Most MSBs have to register using the Financial Crimes Enforcement Network (FinCEN). The enrollment is filed on FinCEN Form 107.
- Confirming client information
- Filing reports (such as Currency Transaction Reports and Suspicious Activity Reports)
- Creating and records that are retaining
- Giving an answer to police force demands
- Designate a compliance officer to make sure day-to-day compliance with this program.
- Offer regular separate review to monitor and keep a adequate system. The range and regularity associated with the review will be commensurate using the danger of the services that are financial by the cash solutions company. This review can be carried out by the employee or officer of the income solutions company as long as the reviewer isn’t the designated conformity officer.
- Offer AML conformity training for employees concerning their duties beneath the system, including trained in the detection of suspicious deals. Documentation showing that appropriate training ended up being supplied to all the employees, including copies of training materials utilized to perform working out must certanly be distributed around the Department.
- Do i must maintain a ledger? that is general are expected by WAC 208-630-640 to steadfastly keep up a broad ledger containing all assets, liabilities, money, earnings, and costs.
- The length of time do i must maintain documents?Licensees have to maintain all documents for at the least 2 yrs per RCW 31.45.060; nonetheless, federal legislation needs a five year retention duration for just about any documents with respect to cash solutions.
- Just exactly What must I expect on an examination?DFI conducts exams of the check casher/seller licensees approximately every 6-24 months, with respect to the danger posed by the business enterprise. For an assessment, an examiner will review a licenseeвЂ™s financial condition, in addition to conformity along with state and federal regulations. The licenseeвЂ™s deals will likely be reviewed to make sure conformity with federal recordkeeping and reporting requirements underneath the Bank Secrecy Act. Administration would be evaluated to make sure they may not be operating the ongoing business in a fashion that could end up being unsafe for Washington customers. In the event that licensee holds a little loan endorsement, agreements and client files may be evaluated to make certain conformity because of the Truth-in-Lending Act and army financing guidelines. Rejected credit files would be evaluated to make sure conformity because of the Equal Credit chance Act. The examiner will even review conformity with different other areas regarding the Check Cashers and Sellers Act, along with other state that is applicable federal rules. The examination that is onsite simply simply simply take anywhere from each day to many months, according to the complexity of this licenseeвЂ™s operations, willingness to supply required paperwork, and overall degree of conformity.