MSB Insider

California Check Cashers Now Have Banking Options With NCC's Expanded Services

July 09, 2019

Check Cashers Can Enjoy Accelerated Rotation of Capital and “Next Day” Funds Availability

LOS ANGELES, July 9, 2019 /PRNewswire/ — National Check and Currency (NCC) expands check cashing services for California money service businesses (MSBs) in the greater Los Angeles, San Francisco and San Diego markets.

How NCC Is Helping California Check Cashers:

  • Redundant Banking
    Through NCC’s reliable network of 5 MSB-friendly banks, check cashers can enjoy direct, redundant banking and protection from the threat of discontinuance.
  • Extended Processing Deadlines
    NCC offers extended processing deadlines and Check Cashers can now make deposits until 11:00pm EST / 8:00pm PST and Sundays until 11:00pm, enabling MSBs to manage their business on less working capital, reducing/eliminating the need for lending lines or uncollected interest charges.
  • Cash Vaulting
    Check Cashers now have access to NCC’s network of cash vaults facilitating daily armored cash deliveries on Check Deposits. “Day of Delivery” Credits and/or Debits on Armored Cash Transportation services, saving MSBs additional costs associated with most banks’ “day of order” charges.
  • Nationwide Remote Cash Delivery
    NCC has the first nationwide cash logistics pick-up and delivery service for the check cashing and money transmitting industries, allowing MSBs to transport insured, trackable cash to and from any MSB location, anywhere in the country.

 

NCC’s Director of Sales, Steve Bessen, affirms, “Banking relationships for California Check Cashers have proven to be a challenge after numerous bank mergers and concerns over compliance continue to plague the industry. NCC has created strategic partnerships with key, MSB-friendly banks, and specialized money service providers thus allowing us to offer comprehensive MSB banking services, including armored cash delivery, to the greater metro areas across California.”

NCC Customer Benefits:

  • “Next Day” funds availability
  • No limits on amounts or item deposit types
  • Weekend deposits available Monday at 9:00am ET, as cash
  • No long-term collateral requirements or Certificates of Deposit
  • Dishonored Items returned electronically
  • Portfolio of MSB-friendly banking partners

 

About National Check and Currency
NCC dedicates 100% of their time and energy to offering financial services to MSB’s. Their commitment to providing the best MSB financial services in the industry is exemplified by their gratified, growing clientele; serving well over 100 Money Service Businesses, operating in hundreds of US locations.

www.natcnc.com

Media Contact:

Andy Benjamin
1-877-327-4249
sales@natcnc.com

 

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NCC Expands Cash Vault Services and Processing Deadlines For California Check Cashers

June 18, 2019

California Check Cashers now have access to better banking relationships

LOS ANGELES, June 18, 2019 /PRNewswire/ — National Check and Currency (NCC) now offers cash vaulting and banking services for California Check Cashers (MSBs) operating in the greater Los Angeles, San Francisco and San Diego markets.

  • NCC’s network of cash vaults enables Check Cashers to receive daily armored cash deliveries on Check Deposits.
  • NCC’s Check Cashers can make deposits until 11:00 pm EST / 8:00 pm PST and Sundays until 11:00 pm allowing the fastest rotation of capital in the industry.


NCC’s MSB clients receive:

  • “Next Day” funds availability
  • No limitations placed on the amounts or types of items deposited
  • Weekend deposits available Monday morning as cash
  • No long-term collateral requirements or Certificates of Deposit
  • Dishonored Items returned electronically
  • Redundant MSB banking partners

 

With this expansion, NCC now provides cash logistics in America’s largest check cashing markets: California, New York, New Jersey, Connecticut, Florida and other key markets across the country.

NCC’s nationwide cash vaulting allows their clients to rotate funds more efficiently, providing Check Cashers the ability to receive “next day” cash in their local markets.

Steve Bessen, NCC’s Director of Sales, explains, “The MSB banking environment in California has dramatically changed over the past year due to bank mergers and continued MSB “de-risking” by the banking industry. NCC is pleased to offer comprehensive MSB banking services, including armored cash delivery, to the greater majority of California.”

In addition to our cash vault services, NCC provides direct banking relationships through their partnership network of five MSB-friendly financial institutions with coverage across the United States. NCC’s redundancy in banking relationships protects check cashers from the threat of bank discontinuance.

About National Check and Currency

NCC was established in 2007 in response to the acceleration of MSB bank discontinuance due to wholesale de-risking by major financial institutions.  NCC has evolved into a compliance-centric financial services company leveraging state-of-the-art software technologies, extraordinary AML/BSA compliance, and stellar customer service.  The focus of NCC is to safeguard affiliated financial institutions and MSB customers through a proactive approach to risk monitoring and robust compliance requirements.

www.natcnc.com

Media Contact

Andy Benjamin
1-877-327-4249
sales@natcnc.com

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Money Service Business Banks & Regulators Enter Multi-State Contract

February 14, 2018

Money service business banks and state regulators are forging ahead with a multi-state licensing process for MSBs. The new agreement will standardize core parts of the money service business licensing process. This is just one of the changes affecting MSB-friendly banks and their clients in the coming year. Keep reading to learn more about this agreement and other trends affecting the MSB industry.

Multi-State MSB Licensing Agreement

According to a new multi-state licensing agreements, one state will accept another state’s findings during the money transmitter license application process. When a business applies for their money transmitter license, the state works to ensure that they have a business plan, clean background check, and that they are in compliance with the Bank Secrecy Act (BSA) and anti-money laundering (AML) requirements.

Additional states are expected to join Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington as the compact gains steam. This compact is the first step towards a streamlined MSB licensing process. Experts are hopeful that this is the start of a 50-state licensing program. Money service businesses, money transmitters, payment service providers, currency exchangers, and fintech companies will benefit greatly from this integrated approach.

Tennessee Department of Financial Institutions Commissioner, Greg Gonzales, notes “With this initiative, state governments will be able to be responsive to business innovation while ensuring regulatory compliance. This Department has advocated for a more coordinated approach for the licensing and regulation of MSBs for nearly thirty (30) years and it is satisfying to be among the first states to take this step toward an integrated nationwide system.  This is a global industry and its supervision must be addressed in a way that allows consumers to take advantage of a broad array of products while ensuring appropriate regulation.”  

OCC Semiannual Risk Report

A few times a year, the Office of the Comptroller of the Currency (OCC) releases a risk report highlighting the strategic, credit, operational, and compliance risks facing the United States’ banking system. The OCC’s National Risk Committee (NRC) is a group of officials who issue guidance for financial institutions that help them comply with current AML and BSA requirements while promoting financial security. The group includes senior level officials from the supervisory, legal, policy, and economics departments.

Their fall 2017 report centered around cybersecurity and financial crime. Cybersecurity was the main focus of the report, specifically as it pertains to AML and the federal banking system. As the speed and scope of cybersecurity threats increases, banks are continually facing threats to their personnel, processes, and technology.

Some of these threats aim to exploit personal information and intellectual property for fraud. “Phishing” schemes and other criminal data breaching techniques point to a need for robust software and extensive employee training. Long story short, banks are being urged to invest more time, money, and manpower into their fraud-prevention and compliance programs.

While the current fintech explosion is bringing new advancements that financial institutions can use to strengthen processes, these same advancements are opening the door to new risks. The risk environment itself is growing increasingly complicated alongside this technological boom.

As the financial sector embraces technology for compliance, they are also using it to boost customer service, increase convenience, and expand access to their financial services. These new applications create a need for new and updated regulations. As new regulations are handed down by FinCEN, money service business banks must review and refine their compliance programs in order to keep up with the latest requirements.

New FinCEN Requirements for MSBs & Banks

The United States Treasury’s Financial Crime Enforcement Network (FinCEN) announced the creation of the FinCEN Exchange at the end of 2017. The Exchange is designed as a voluntary platform for information sharing on financial crimes issues and AML efforts. The Exchange also formalizes roughly 40 special briefings that FinCEN has conducted for financial institutions and law enforcement agencies since 2015.

The new platform is accompanied by FinCEN’s plan to facilitate periodic briefings between itself, law enforcement agencies, and industry players. These briefings will center around the identification and exchange of information relating to specific threats, like the development of new money laundering methods.

In May 2018, FinCEN’s new customer due diligence requirements will go into effect. The Final CDD Rule, as it is known, requires financial institutions to collect, maintain, and report beneficial ownership information. The Federal Register clarifies this further, saying that all banks and broker/dealers “must identify and verify the identity of the beneficial owners of all legal entity customers (other than those that are excluded) at the time a new account is opened (other than accounts that are exempted).”

When it comes to customer due diligence, FinCEN focuses on these four elements:

  1. Customer identification and verification
  2. Beneficial ownership identification and verification
  3. Understanding the nature and purpose of customer relationships to develop a customer risk profile
  4. Ongoing monitoring for reporting suspicious transactions and, on a risk-basis, maintaining and updating customer information

The Final Rule seeks to prevent money laundering and terrorist financing by closing any and all existing loopholes. FinCEN has the power to require financial institutions to record and file reports as a part of the U.S. Treasury under the BSA, which was amended by the Patriots Act.

The Final Rule focuses on beneficial ownership, which FinCEN defines as:

  1. Each individual, if any, who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity interests of a legal entity customer
  2. A single individual with significant responsibility to control, manage, or direct a legal entity customer, including:
    1. An executive officer or senior manager (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer)
    2. Any other individual who regularly performs similar functions
  3. If a trust owns directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, 25 percent or more of the equity interests of a legal entity customer, the beneficial owner shall mean the trustee

MSB-friendly banks and MSB owners will need to keep an eye on FinCEN and changing requirements in the year ahead.

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Available 24/7

Our first priority is to keep our customers banked and processing items. Our partnership with multiple MSB-friendly Financial Institutions allows us to meet that goal. If you have questions about establishing a new MSB bank account relationship, or would like help with your current account, please feel free to either e-mail or call us. 24 hours a day. 7 days a week

The MSB Insider

California Check Cashers Now Have Banking Options With NCC's Expanded Services

Check Cashers Can Enjoy Accelerated Rotation of Capital and “Next Day” Funds Availability

LOS ANGELES, July 9, 2019 /PRNewswire/ — National Check and Currency (NCC) expands check cashing services for California money service businesses ...(read full article)

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