Always check 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 ahead of an examination that is routine. The Manager’s Questionnaire is supposed to be finished by the licensee and gone back to your Department ahead of the assessment.

Typical Examination Findings

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

Failure to determine army borrowers at period of application See: WAC 208-630-470

Failure to upgrade apps with every deal See: WAC 208-630-480

Failure to produce transaction that is adequate See: WAC 208-630-505

Failure to own an adequate aml system when required See: WAC 208-630-721

Failure to own notification that is adequate of taken type See: Regulation B ECOA

Failure to own A truth that is adequate in agreement See: Regulation Z TILA

Examination FAQs

Responses to questions that are common exams carried out by DFI.

What’s a cash solutions company (MSB)? Have always been we an MSB?If you’re certified under the Check Cashers and Sellers Act, you may be an MSB underneath the Bank Secrecy Act. Check always 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 just about any anyone in virtually any 1 day), check selling (as long as the licensee offers checks or cash sales over $1,000 for just about any anyone in virtually any 1 day), or offering saved value (only when the licensee offers saved value over $1,000 for almost any anyone in every 1 day). Just what payday loans in Stephens City VA performs this mean for you personally? If you should be an MSB, your organization might be at the mercy of rules that are additional laws.

Most MSBs have to register aided by the Financial Crimes Enforcement Network (FinCEN). The registration is filed on FinCEN Form 107.

How often do i must register as an MSB?Re-registration is necessary 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. As an example, when your payday loan shop makes cable transfers as a delegate that is authorized Western Union, you’re not necessary to register until you conduct other MSB tasks, such as for example check cashing.

What’s the necessary content of an AML program?All MSBs have to design and implement an anti-money laundering program to stop their financial loans and solutions from getting used to facilitate cash laundering and terrorist financing. An anti-money laundering program is needed to be:

Be commensurate with the dangers posed by the positioning and size of, and also the nature and level of the economic solutions supplied by, the amount of money solutions company.

Be on paper, making readily available for examination towards the Department for the Treasury along with other agencies that are regulatory demand.

At the absolute minimum integrate policies, procedures, and interior settings fairly made to ensure compliance 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 retaining documents
• Giving an answer to police force needs
• Designate a compliance officer in order to guarantee day-to-day conformity with this program.
• Allow for regular separate review to monitor and keep a program that is adequate. The scope and regularity of this review will be commensurate using the danger of the services that are financial by the money solutions company. This review might be carried out by an employee or officer of the income services company 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 dubious deals. Documentation showing that appropriate training ended up being supplied to all or any workers, including copies of training materials utilized to perform working out must certanly be distributed around the Department.
• Do I have to keep a general ledger?licensees are needed by WAC 208-630-640 to keep up an over-all ledger containing all assets, liabilities, money, earnings, and costs.
• The length of time do i need to maintain documents?Licensees have to keep all records for at the very least couple of years per RCW 31.45.060; but, federal legislation takes a five 12 months retention duration for just about any records related to cash solutions.
• Just exactly What must I expect on an examination?DFI conducts exams of their 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 licensee’s financial condition, along with conformity along with state and federal regulations. The licensee’s deals may be evaluated to make sure conformity with federal reporting and recordkeeping requirements beneath the Bank Secrecy Act. Administration would be assessed to make sure they’re not 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 recommendation, agreements and consumer files is supposed to be evaluated to make certain conformity because of the Truth-in-Lending Act and army financing guidelines. Rejected credit files is likely to be evaluated to make certain compliance using the Equal Credit chance Act. The examiner will even review conformity with different the rest for the Check Cashers and Sellers Act, and also other state that is applicable federal regulations. The on-site assessment can just just simply take anywhere from each day to many days, with respect to the complexity for the licensee’s operations, willingness to offer required documents, and general amount of compliance.