Examination information, faqs, and resources for Washington Check Cashers and Payday Lenders.
The ManagerвЂ™s Questionnaire is delivered to the licensee just before an examination that is routine. The ManagerвЂ™s Questionnaire are going to be finished because of the licensee and came back to the Department before the examination.
Typical Examination Findings
Responses to typical questions regarding 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 Casher and Seller licensees are MSBs when they take part in cash transmission, check cashing (as long as the licensee cashes checks over $1,000 for almost any one individual in just about any 1 day), check selling (only when the licensee sells checks or cash requests over $1,000 for just about any one individual in virtually any 1 day), or offering saved value (as long as the licensee offers saved value over $1,000 for almost any one individual in every 1 day). So what does this mean for your needs? If you should be an MSB, your organization can be at the mercy of extra guidelines and laws.
Many MSBs are required to register using the Financial Crimes Enforcement Network (FinCEN). The enrollment is filed on FinCEN Form 107.
- Confirming client information
- Filing reports (such as for example Currency Transaction Reports and Suspicious Activity Reports)
- Creating and retaining documents
- Giving an answer to police needs
- Designate a conformity officer to make sure day-to-day conformity with this system.
- Allow for regular independent review to monitor and keep maintaining a sufficient system. The range and regularity regarding the review will be commensurate utilizing the threat of the economic solutions supplied because of the money solutions business. This review can be carried out by the officer or employee of the income solutions business provided that the reviewer isn’t the designated conformity officer.
- Offer AML conformity training for employees concerning their duties underneath the system, including trained in the detection of dubious transactions. Documentation showing that appropriate training ended up being supplied to all or any workers, including copies of training materials utilized to perform working out should be distributed around the Department.
- Do i must keep a general ledger?licensees are needed by WAC 208-630-640 to keep an over-all ledger containing all assets, liabilities, money, earnings, and costs.
- Just how long do i need to maintain documents?Licensees have to keep all documents for at the least 2 yrs per RCW 31.45.060; but, federal legislation takes a five 12 months retention duration for just about any documents related to money solutions.
- Just exactly just What must I expect for an examination?DFI conducts exams of the check casher/seller licensees roughly 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 foibles. The licenseeвЂ™s deals are going to be evaluated to make sure conformity with federal reporting and recordkeeping requirements underneath the Bank Secrecy Act. Administration would be evaluated to make certain they may not be running the business in a fashion that could end up being unsafe for Washington customers. In the event that licensee holds a loan that is small, agreements and consumer files will soon be evaluated to make sure conformity aided by the Truth-in-Lending Act and army financing guidelines. Rejected credit files is supposed to be evaluated to make certain compliance using the Equal Credit chance Act. The examiner may also review conformity with different the rest associated with Check Cashers and Sellers Act, along with other relevant state and federal rules. The on-site assessment can simply take anywhere from every day a number of days, with regards to the complexity for the licenseeвЂ™s operations, willingness to present requested documents, and general amount of compliance.