Regulatory Alerts2008-12-29
Examination Planning Guidelines for Check Cashers
The Louisiana Office of Financial Institutions issued Policy CKC-01-08 to establish examination frequency and compliance priorities for check cashers under state law and the federal Bank Secrecy Act. Beginning January 2009, all licensed locations must undergo state and federal compliance audits within three years, while previously IRS/FinCEN-verified locations will only require state-specific examinations. Newly licensed branches are subject to audits within 120 to 180 days of licensing, and the Commissioner retains discretionary authority to mandate more frequent examinations when public safety or welfare is at risk.
STATE OF LOUISIANA OFFICE OF FINANCIAL INSTITUTIONS BATON ROUGE, LOUISIANA December 22, 2008 POLICY NO. CKC-01-08
EXAMINATION PLANNING GUIDELINES FOR CHECK CASHERS PURPOSE: The purpose of this policy is to establish guidelines and set priorities for check casher compliance examinations of both the Louisiana Check Cashing Law and the Federal Bank Secrecy Act (“BSA”). TO WHOM THIS REGULATION APPLIES: This policy applies to all field office personnel who perform check cashing compliance examinations. SPECIFICS: The frequency for performing compliance examinations is as follows:
- Beginning in January, 2009, all locations will be examined using both the Louisiana Check Cashing Law and BSA within the next three years; however, if a check casher location has been previously examined by the IRS/FinCEN for BSA, the Office of Financial Institutions (“OFI”) will perform only the “State Compliance” portion of the OFI check cashing examination. District offices will perform approximately onethird of the total locations every year.
- Newly issued licensed locations are to be examined within 120 to 180 days after initial licensing. The Commissioner may, at his discretion, require examinations more frequently should he find that the public safety or welfare is threatened.
John Ducrest, Commissioner