Always check Cashers and Payday Lenders Examinations.Manager’s Questionnaire

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 may be finished because of the licensee and came back to your Department ahead of the assessment.

Typical Examination Findings

  • Failure to publish needed disclosures in lobby See: WAC 208-630-580
  • Failure to spot borrowers that are military time of application See: WAC 208-630-470
  • Failure to upgrade apps with every deal See: WAC 208-630-480
  • Failure to deliver adequate deal receipts See: WAC 208-630-505
  • Failure to own an adequate aml system when needed See: WAC 208-630-721
  • Failure to own sufficient notification of action taken kind See: Regulation B ECOA
  • Failure to possess A truth that is adequate in 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 might be certified beneath 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 participate in cash transmission, check cashing (as long as the licensee cashes checks over $1,000 for just about any one individual in every 1 day), check selling (only when the licensee offers checks or cash requests over $1,000 for just about any one individual in just about any 1 day), or offering saved value (only when the licensee sells saved value over $1,000 for just about any one individual in almost any 1 day). So what performs this suggest for you personally? If you should be an MSB, your company could be at the mercy of rules that are additional laws.

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

  • How many times do i must register as an MSB?Re-registration is required every couple of years, or whenever particular other conditions of 31 CFR 103.41 are met. MSBs acting entirely as agents or authorized delegates for other MSBs are not necessary to join up. For instance, if for example the pay day loan store makes cable transfers as a delegate that is authorized Western Union, you aren’t necessary to register until you conduct other MSB tasks, such as for instance check cashing.
  • What’s the needed content of a AML program?All MSBs have to design and implement an anti-money laundering program to avoid their lending options and solutions from used to facilitate cash laundering and terrorist financing. An anti-money laundering system is needed to be:

  • Be commensurate using the dangers posed by the positioning and size of, together with nature and amount of the services that are financial by, the income services company.
  • Be on paper, making readily available for inspection to your Department for the Treasury along with other regulatory agencies upon request.
  • At the absolute minimum utilize policies, procedures, and controls that are internal built to guarantee conformity with payday loan cash advance Wood Lake AML laws, including demands for:
    • Confirming consumer information
    • Filing reports (such as for example Currency Transaction Reports and activity that is suspicious)
    • Creating and retaining documents
    • Responding to police force needs
    • Designate a conformity officer to make sure day-to-day conformity with this program.
    • Allow for regular separate review to monitor and keep maintaining a sufficient system. The range and regularity of this review will be commensurate because of the danger of the monetary solutions supplied because of the cash services company. This review could be carried out by the employee or officer of the income solutions business as long as the reviewer isn’t the designated compliance officer.
    • Offer AML conformity training for workers 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 the workers, including copies of training materials utilized to perform working out must certanly be distributed around the Department.
    • Do I have to keep a ledger? that is general are expected by WAC 208-630-640 to keep an over-all ledger containing all assets, liabilities, money, income, and costs.
    • Just how long do i must maintain documents?Licensees have to keep all documents for at the least couple of years per RCW 31.45.060; nonetheless, federal legislation calls for a five 12 months retention duration for almost any documents related to cash solutions.
    • Just exactly What can I expect for an examination?DFI conducts exams of the check casher/seller licensees approximately every 6-24 months, with respect to the danger posed by the business enterprise. An examiner will review a licensee’s financial condition, as well as compliance with all state and federal rules and regulations on an examination. The licensee’s deals may be reviewed to make sure compliance with federal reporting and recordkeeping requirements underneath the Bank Secrecy Act. Management may be examined to make sure they’re not operating the business in a fashion that could turn out to be unsafe for Washington customers. In the event that licensee holds a little loan endorsement, agreements and client files is going to be evaluated to make certain conformity with all the Truth-in-Lending Act and armed forces financing guidelines. Denied credit files would be evaluated to make certain conformity aided by the Equal Credit chance Act. The examiner also review conformity with different other areas regarding the Check Cashers and Sellers Act, along with other relevant state and federal legislation. The on-site examination can just just take anywhere from each and every day a number of months, with regards to the complexity for the licensee’s operations, willingness to produce required documents, and overall degree of conformity.