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Let me make it clear about Check Cashers and Payday Lenders exams

Let me make it clear about Check Cashers and Payday Lenders exams

Examination information, faqs, and resources for Washington Check Cashers and Payday Lenders.

Manager’s Questionnaire

The Manager’s Questionnaire is delivered to the licensee just before an examination that is routine. The Manager’s Questionnaire are going to be finished by the licensee and came back towards the Department ahead of the assessment.

Examination FAQs

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 may be certified beneath the Check Cashers and Sellers Act, you may be an MSB beneath the Bank Secrecy Act. Check always Casher and Seller licensees are MSBs when they practice cash transmission, check cashing (only when the licensee cashes checks over $1,000 for almost any one individual in every 1 day), check selling (only when the licensee offers checks or cash instructions over $1,000 for almost any anyone in virtually any 1 day), or attempting to sell saved value (as long as the licensee offers saved value over $1,000 for almost any one individual in every 1 day). What performs this suggest for you personally? If you should be an MSB, your company could be susceptible to extra guidelines and laws.

Many MSBs have to register utilizing the Financial Crimes Enforcement Network (FinCEN). The enrollment is filed on FinCEN Form 107.

  • How frequently do i need to register being an MSB?Re-registration is necessary every couple of years, or when particular other conditions of 31 CFR 103.41 are met. MSBs acting solely as agents or delegates that are authorized other MSBs are not necessary to join up. As an example, if for example the pay day loan shop makes cable transfers being a delegate that is authorized Western Union, you’re not needed to register until you conduct other MSB tasks, such as for example check cashing.
  • What’s the needed content of an AML program?All MSBs have to design and implement an anti-money laundering program to avoid their financial loans and solutions from getting used to facilitate cash laundering and financing that is terrorist. An anti-money laundering system is needed to be:

    • Be commensurate utilizing the dangers posed by the positioning and measurements of, in addition to nature and level of the services that are financial by, the income solutions company.
    • Be written down, making readily available for assessment to your Department associated with the Treasury as well as other regulatory agencies upon demand.
    • At the absolute minimum utilize policies, procedures, and interior controls fairly built to ensure conformity with AML laws, including needs for:
      • Confirming consumer information
      • Filing reports (such as for example Currency Transaction Reports and activity that is suspicious)
      • Creating and records that are retaining
      • Giving an answer to police force needs
    • Designate a conformity officer in order to guarantee compliance that is day-to-day this system.
    • Offer regular separate review to monitor and continue maintaining a program that is adequate. The range and regularity associated with the review will probably be commensurate aided by the chance of the economic solutions supplied because of the cash solutions company. This review could be carried out by an employee or officer of the cash solutions company as long as the reviewer isn’t the designated conformity officer.
    • Offer AML conformity training for workers concerning their duties beneath the system, including trained in the detection of dubious deals. paperwork showing that appropriate training ended up being supplied to any or all workers, including copies of training materials utilized to perform working out needs to be distributed around the Department.
  • Do i must keep a ledger? that is general are needed by WAC 208-630-640 to steadfastly keep up a basic 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 very least 2 yrs per RCW 31.45.060; nonetheless, federal legislation needs a five 12 months retention duration for almost any documents related to cash solutions.
  • Exactly just exactly exactly What must I expect on an examination?DFI conducts examinations of their check casher/seller licensees roughly every 6-24 months, with respect to the danger posed by the company. For an assessment, an examiner will review a licensee’s monetary condition, also conformity along with state and federal foibles. The licensee’s deals will soon be reviewed to make certain conformity with federal recordkeeping and reporting requirements underneath the Bank Secrecy Act. Administration should be examined 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 loan that is small, agreements and client files will soon be evaluated to make certain conformity utilizing the Truth-in-Lending Act and armed forces financing guidelines. Rejected credit files are going to be evaluated to make certain conformity utilizing the Equal Credit chance Act. The examiner will even review conformity with different other areas associated with the Check Cashers and Sellers Act, and also other state that is applicable federal regulations. The examination that is onsite just simply just simply take anywhere from every day to many months, with respect to the complexity for the licensee’s operations, willingness to offer required paperwork, and general degree of conformity.
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