Check always Cashers and Payday Lenders Examinations.Manager’s Questionnaire

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

The Manager’s Questionnaire is provided for the licensee just before a routine assessment. The Manager’s Questionnaire is supposed to be finished by the licensee and gone back to your Department before the assessment.

Typical Examination Findings

Failure to publish needed disclosures in lobby See: WAC 208-630-580

Failure to recognize borrowers that are military period of application See: WAC 208-630-470

Failure to update apps with every transaction See: WAC 208-630-480

Failure to give sufficient deal receipts See: WAC 208-630-505

Failure to possess A aml that is adequate program needed See: WAC 208-630-721

Failure to own sufficient notification of action taken type See: Regulation B ECOA

Failure to own a sufficient truth in financing agreement See: Regulation Z TILA

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 will be certified beneath the Check Cashers and Sellers Act, you may 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 anyone in just about any one day), check selling (as long as the licensee offers checks or money sales over $1,000 for almost any anyone in just about any 1 day), or offering kept value (only when the licensee sells saved value over $1,000 for almost any someone in almost any https://speedyloan.net/payday-loans-ny/cheektowaga/ 1 day). So what performs this mean for you personally? If you should be an MSB, your organization can be susceptible to extra guidelines and laws.

Many MSBs have to register with all 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 needed every couple of years, or whenever particular other conditions of 31 CFR 103.41 are met. MSBs acting entirely as agents or delegates that are authorized other MSBs are not necessary to join up. For instance, should your cash advance store makes cable transfers being a delegate that is authorized Western Union, you aren’t required to register until you conduct other MSB tasks, such as for instance check cashing.

What’s the required content of a 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 terrorist financing. An anti-money laundering system is needed to be:

Be commensurate utilizing the dangers posed by the area and size of, together with nature and number of the services that are financial by, the income solutions company.

Be on paper, making designed for assessment to your Department associated with Treasury along with other agencies that are regulatory demand.

At the absolute minimum utilize policies, procedures, and controls that are internal built to guarantee conformity with AML laws, including needs for:

• Confirming client 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 to make sure day-to-day conformity with this system.
• Offer periodic separate review to monitor and continue maintaining a program that is adequate. The range and regularity regarding the review will be commensurate because of the danger of the services that are financial by the cash solutions company. This review are carried out by an employee or officer of the income solutions business as long as the reviewer isn’t the designated conformity officer.
• Offer AML conformity training for workers concerning their obligations beneath the system, including trained in the detection of suspicious deals. Documentation showing that appropriate training had been supplied to all or any employees, 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 keep a basic ledger containing all assets, liabilities, money, earnings, and costs.
• Just how long do i must maintain documents?Licensees have to keep all documents for at the very least 2 yrs per RCW 31.45.060; nonetheless, federal legislation requires a five 12 months retention duration for almost any documents with respect to cash solutions.
• What can I expect for an examination?DFI conducts exams of the check casher/seller licensees roughly every 6-24 months, according to the danger posed by the company. For an assessment, an examiner will review a licensee’s financial condition, in addition to conformity along with state and federal regulations. The licensee’s deals is going to be evaluated to make sure conformity with federal reporting and recordkeeping requirements underneath the Bank Secrecy Act. Management would be evaluated to make certain they may not be operating the business in a fashion that could show to be unsafe for Washington customers. In the event that licensee holds a tiny loan recommendation, agreements and consumer files is going to be evaluated to make certain compliance using the Truth-in-Lending Act and army financing guidelines. Denied credit files should be reviewed to make certain conformity with all the Equal Credit chance Act. The examiner will even review conformity with different other areas of this Check Cashers and Sellers Act, along with other relevant state and federal rules. The on-site assessment can just just take anywhere from per day to many days, according to the complexity for the licensee’s operations, willingness to deliver required documents, and general standard of compliance.