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January to March 2009, Volume 5, Issue #1(This Newsletter is a quarterly publication containing topics of interest to the categories ofMSBs regulated by the Georgia Department of Banking and Finance. We hope that you willfind this publication to be informative and valuable for providing information about theissues affecting your industry. If there are any issues you would like for the Departmentto highlight or address in future editions, please e-mail your questions or suggestions todbfmort@dbf.state.ga.us.)REGULATORY MATTERSGeorgia Regulatory IssuesNews Notes from the Desk of Teresa KoeppelAdministrative ExaminerSOCs and MTs‐ LOCATIONSIn This Issue:REGULATORY MATTERSDBF AdministrativeNotesMoney Transmitterand Seller of ChecksRenewalsSemi-AnnualReporting122BSA/FEDERAL NEWSWhen compiling information for the semi‐annual report (due March 1, 2009 forthe July through December 2008 reporting period), be sure that you include alllocations. Considering that you may have branches as well as agents, you mustinclude both. In addition, consider that your agents may have more than onelocation, so you must list each location. Remember, each location must beconsidered for your bond amount, and note that each location increases therequired bond by 5,000 to a maximum of 250,000 for the required amountbased on locations. If your average daily outstandings exceed 250,000, youmust increase your bond based on outstandings. Please refer to our frequentlyasked questions on our website (www.gadbf.org) and refer to Code Section 7‐1‐683.MSB RegistrationHB 4049- MoneyService Business Actof 2008FINANCIAL STATEMENTS/ACCOUNTING SYSTEMS and AUDITSDepartment ContactInformation33OTHER NEWSState Holidays-20094Customer Service Star5Action on ApplicationsDuring the PreviousQuarter/ClosedLicensees5to89One thing I noticed during renewals was that many of you do not include youroutstanding transactions on your balance sheet as either an asset or a liability.Outstanding transactions are those that are not completed in 24 hours andtherefore they are receivable as an asset, or payable as a liability. Completedtransactions are those that are paid to the intended recipient (not the bank oragent location). Your accounting system should reflect these amounts on yourbalance sheet as a receivable if it is coming to you and a payable if it is being sent.Sellers of Checks are required to have an annual audit performed and a copy of that audit is required to be provided tothe Department of Banking and Finance within 30 days of the date you receive it. All balance sheet items should beproperly categorized. In addition, all Sellers of Checks and Money Transmitters must maintain General Ledgers which shallbe posted at least monthly containing all assets, liabilities, capital, and income and expense accounts, as required by CodeSection 7‐1‐687.1(a)(2).MISCELLANEOUSLicensees must notify the Department when you move your main office or any other offices or when you close anylocation.-1-

When your owners or officers change, do the following: go to our website and print the Form MSB3 for each new officeror owner, send in with fingerprint cards and a recent credit report so that we can investigate and approve theseindividuals.Thank you to those who renewed in a timely manner. You should have received your license certificate by email. Be sureto keep your contact information current so that emailed notices reach the correct party.You should have received a notice by email telling you that Semi Annual Reporting began on January 2, 2009. Whencompleting this report online, you must include the name of any revoked agents, the reason revoked, and the amount ofany outstanding claims involved (Rule 80‐3‐1‐.01(4)).HAPPY NEW YEAR!Money Transmitter and Check SellerRenewalsLicensed Money Transmitters and Sellers ofChecks who had not completed their renewalby the midnight December 31, 2008 deadlinehave had their licenses expire and will have tocease money service business operations. Failureto properly RENEW a license will require aREINSTATEMENT of the license in order to conductcheck selling/transmission activity in Georgia.Those affected should please see the applicationon the internet at:http://dbf.georgia.gov/msbforms.Semi‐Annual Reporting:Check Sellers and Money TransmittersIt is time once again to submit Semi‐Annual Reportinformation. As with the last reporting period, thesereports must be made by the licensee on‐line. Noelectronic (CD/diskette) submissions to this office willbe accepted, with the exception of the initial filesubmitted when a licensee is first approved.Passwords to the system are provided in a letternotifying licensees of the new process. You maychange the password at any time.Quarterlynotifications are being sent to each licensee licenseeswill be notified by e‐mail only. Please make certainyour e‐mail on file is correct!Note this screen. Direct links are available fromthe Department’s MSB website:http://www.ganet.org/dbf/other forms.html-2-

BSA/FEDERAL NEWSFINCEN ‐ MSB RegistrationNEW BSA EXAMINATION MANUALRemember that it is time to renew yourregistration with FinCEN.FinCEN has released a manual for examiners ofmoney services businesses. The manual providespolicies and procedures to use to evaluate whetherand MSB’s anti‐money laundering program isadequate to comply with the requirements of theBank Secrecy Act.The manual includesinformation regarding what your program isrequired to include, BSA/AML risks, and soundpractices to use to mitigate those risks.For all entities required to register, renewal of thatregistration is due by December 31 of the secondyear from the registration date, and then due bi‐annually thereafter. For instance, if you firstregistered on October 3, 2007 then you shouldhave renewed that registration by December 31,2008.A copy of the manual is available at:FinCEN has as convenient RENEWAL CALCULATORto help you determine your renewal date. Goto:http://www.fincen.gov/news room/rp/msb exam materials.htmlhttp://www.msb.gov/guidance/msb calculator.phpFYI - House Bill 4049 - PendingAs we noted last quarter, House Bill 4049, the purpose of which is to amend section 5318 of Title 31, UnitedStates Code by eliminating regulatory burdens imposed on insured depository institutions and money servicesbusinesses and enhance the availability of transaction accounts at depository institutions for such business, hasbeen passed in the House.As of November 6, 2008, the bill is still pending a vote in the Senate. Licensees should keep in mind thatdebate may be taking place on a companion bill in the Senate, rather than on this particular bill. Last Action onthe bill was July 23, 2008 after being received in the Senate and read twice and referred to the Committee onBanking, Housing, and Urban Affairs. The next meeting of the Senate is Jan 2, 2009.RECAP: Known as the Money Service Business Act of 2008, this bill amends federal law governing anti-moneylaundering programs to provide that an insured depository institution has no obligation to review thecompliance with federal anti-money laundering requirements of a money transmitting business for whom itmaintains an account if such institution has on file specified mandatory self-certifications submitted by themoney transmitting business.The bill provides that money services businesses (MSBs) may self-certify their compliance with anti-money andcounter-terrorism regulations when establishing accounts with federally insured depository institutions. MSBsmust certify that they are in compliance with federal banking law and registered as such. Additionally, the MSB-3-

must certify that it maintains an anti-money laundering program as required by federal law, be licensed orregistered as an MSB by each State in which it operates, and meet such other regulations as the TreasurySecretary formulates to assure strong anti-crime regimes. The bill prescribes requirements for self-certification bya money transmitting businessThe MSB certification requirements under this bill also extend to agents of money transmitting businesses. Inaddition to the certification requirements for MSBs, agents of MSBs must provide that they are contract boundagents of an MSB, will comply with all applicable laws, and will notify any federally insured depository institutionof any material changes to their relationship with the MSB to which they are a contracted agent.The Bill also sets forth civil and criminal penalties for violations of this Act without regard to whether suchviolations were willful and shields such institution from liability for the non-compliance of a money transmittingbusiness and its agents with federal anti-money laundering requirements. The Bill directs the Secretary of theTreasury to prescribe implementing regulations.2009 State HolidaysIn accordance with O.C.G.A. §1‐4‐1, Governor Sonny Perdue proclaimed thefollowing dates as public and legal holidays for the year 2009.NOTEDEPARTMENT OFFICES WILL BE CLOSED THIS FIRST QUARTER ON JANUARY 19, 2009 INHONOR OF THE MARTIN LUTHER KING, JR. HOLIDAY.HOLIDAY DATEOBSERVANCE DATENew Year’s DayThursday, January 1Martin Luther King Jr.’s BirthdayMonday, January 19Confederate Memorial DayApril 26 will be observed Monday, April 27Memorial DayMonday, May 25Independence DayJuly 4 will be observed Friday, July 3Labor DayMonday, September 7Columbus DayMonday, October 12Veterans’ DayWednesday, November 11Thanksgiving DayThursday, November 26Robert E. Lee’s BirthdayJanuary 19 will be observed on Friday, November 27Washington’s BirthdayFebruary 16 will be observed on Thursday, December 24Christmas DayFriday, December 25E‐MAIL UPDATES!!! https://bkgfin.dbf.state.ga.us/MSBUpdate.htmlA reminder –make certain we have the correct e‐mail address for your license or registration so that you will receive allnotices and correspondence!-4-