Regulatory Alerts2007-11-15
Added
Ruling on Whether a Publicly Traded Company Cashing Its Own Loan Checks Is a Money Services Business
FinCEN determines that a publicly traded company is not a check casher under money services business regulations if it only cashes its own checks issued to loan customers as loan proceeds. This activity is classified as disbursing loan proceeds in cash rather than check cashing, which excludes the entity from the definition of a check casher. The ruling clarifies that the company's stock registration with the Securities and Exchange Commission does not trigger the exemption for banks and financial institutions, as the companies themselves are not registered with the SEC.