Consumer complaint received 2019-11-15
Product: Checking or savings account — Checking account
Issue: Opening an account — Unable to open an account
Company: U.S. BANCORP (NM)

CONSUMER FINANCIAL PROTECTION BURO XXXX XXXX, Director XXXX XXXX, Deputy Director XX/XX/XXXX Matter : US Bank reject to open a legal and in compliance MSB Checking Account without a reason, and without the fair process. 

With all due respect, hereby, I am writing regarding to be unable to open an account for MSB in US Bank who has refused to provide us reasonable banking access despite and in clear contempt of the FinCen and Federal Bank Agencies regulation. 
On XX/XX/XXXX I approached to the local US Bank branch by XXXX XXXX XXXX XXXX, XXXX NM XXXX, to request a checking account for our MSB. The store manager kindly explained me that US Bank do not open MSBs accounts any more, and that they only keep the MSBs the have from before. I asked him if considering I was US Bank customer for another MSBs in the past it could be an exception given the good background and the good banking culture and compliance on the past. He told me that, he could try but with no guaranty to get the approval. Then, he came to our location to do a visit and he asked us for some basic documentation, but with out an application with the usual long questionnaire on a risk assessed basis. 

After a couple of weeks, he came back with bad news asserting his compliance department refused to open the checking account. We asked him why or whats the specific reason, and he said that they did not give him a specific reason. Just too risky. 
We shared with him the Advisory dated on XX/XX/XXXX from XXXX, where XXXX and The Federal Bank Agencies on XX/XX/XXXX issued a joint statement recognizing the importance of ensuring that Money Service Business   that comply with the law have reasonable access to banking services. The statement also confirmed that banking organizations should apply the BSA requirements to Money Service Business, as they do with all accountholders, on a risk-assessed basis. Therefore, in accordance with this provision, there is no place to reject MSB petitions for checking accounts without following this advisory. However, seems like US Bank do not care of the XXXX advisory non the Federal Banking Agencies advisory they made in joint statement. 

In this advisory we see two lines of analysis. First. The MSB should be in compliance with the Law. Second, the Bank must perform a risk-assessed bases analysis about the MSB. 

We are in compliance with the Law, and we have a strong risk management ; and US Bank did not say something about it. 
In these lines of analysis, we can prove that : 1 ) We comply with Federal and State Laws and permits required.

2 ) We have a strong AML internal program, even with higher standards than big money transmitters. We comply with the Four pillars of the MSBs in accordance with the BSA. We have developed in addition a strong AML software to prevent structuring and to comply with all the BSA requirements. We have a strong Check Cashing procedures and a great performance in Cashing Checks with cero looses. Also, the history of our 3 years of bank statements shows a very high and excellent banking culture. 

Since we did not have more news from the local US Bank branch, we sent a letter directly to US Bank President and CEO Mr. XXXX XXXX on XX/XX/XXXX by USPS certified mail a petition of reconsideration. Two days later they received the letter. ( Is attached ). This Letter was sent with a full file of the Company formation documentation and legal permits. Also, we attached our full internal BSA AML Program, MSBA membership, the last independent review, the overview of operations with detailed numbers from XXXX and XXXX YTD, the  last 3 monthly bank statements from our current bank, etc. 

On XX/XX/XXXX we received a letter from US Bank date on XX/XX/XXXX signed by Mr. XXXX XXXX, Senior Customer Care Specialist,  asserting that, US Bank, through internal review, has elected to decline your request [ ] we will be unable to revisit the decline of your account application at this time. 

Considerations about the US Bank response.

First.- Never was a real internal review as described on the letter. We never received to fill out the questionnaire they use for MSBs. I know that questionnaire from the past in other accounts I was part in with US Bank. How can US bank have made an entire and sincere analysis in that first attempt? In addition, I want to clear that no one from the compliance department contacted us, not even a conference phone call from the compliance department to perform an entire and sincere deep analysis such as other banks do. They just asked for basi
c documents though the local store manager. We just perceived the good intention of the local store manager, but not the spirit of the XXXX and Federal Bank Agencies advisory for the true and entire process above mentioned. 
Second. The deny from Mr. XXXX XXXX to revisit the case or application, could show that in the bottom of the matter US Bank is having an attitude against the MSB industry in general and they are potentially incurring in unfair proceedings discriminating and blocking new MSB accounts. 
Third.- Unless US Bank , in accordance with the advisory of their regulators, can be able to point specifically how we are not in compliance with the Law, and how our MSB with our Strong BSA-AML Internal Proceedings and internal control [ 31 CFR 103.125 ] are too risky for them, and since our MSB is a LEGAL industry, the deny from US Bank will be not acceptable ; and it could be considered a deceptive and unfair banking practices and a clear contempt of the FinCen and Federal Bank Agencies regulation . 

Therefore, with all due respect, hereby, and pursuant the 31 CFR 103.125 ; the  UDAAP ; and the Finicen and Federal Bank Agencies date on XX/XX/XXXX and XX/XX/XXXX, we request the intervention of the Consumer Financial Protection Bureau to prevent unfair deceptive and discriminatory practices from US Bank and their ambiguous responses. 

We expect to have the right and fair treatment as should be with all the customers ; and if they are not able to prove we are not under the law and what is too risky in our MSB under the BSA Law scope ; then, reasonable access to banking services shall be granted. 
Looking forward for your response, Respectfully