Source: http://dfs.ny.gov/about/ea/ea030915.htm
Timestamp: 2017-10-17 09:22:43
Document Index: 732367540

Matched Legal Cases: ['art 103', 'art 103', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400']

NYDFS Enforcement Action: Settlement Agreement with J.C.G. Check Cashing Corp., September 15, 2003
J.C.G. Check Cashing Corp., a licensed casher of checks, has entered into a Settlement Agreement with the Superintendent of Banks in lieu of a hearing to revoke its license for certain violations of law.
Included in the Settlement Agreement is the payment of a fine of $50,000.
WHEREAS, J.C.G. Check Cashing Corp. (“JCG” or the “Licensee”), with principal office at 146-15 Jamaica Avenue, Jamaica, New York 11435, was granted a license on June 22, 1994 to engage in business as a licensed casher of checks pursuant to Article IX-A of the New York Banking Law (the “Banking Law”) by the Superintendent of Banks (the “Superintendent”) of the New York State Banking Department (the “Banking Department”); and
WHEREAS, as a result of an examination of JCG, dated April 23, 2003, the following violations of the Banking Law and related regulations and of the Currency and Foreign Transactions Reporting Act (31 United States Code Section 5311 et seq.) and the accompanying regulations issued by the United States Department of the Treasury (31 Code of Federal Regulations Part 103.11 et seq.) (collectively, the “Bank Secrecy Act” (“BSA”)), were cited to JCG (the “Violations”):
Violations of the BSA, required pursuant to 31 C.F.R. Part 103.125, relating to the rules and regulations requiring an acceptable anti-money laundering compliance program and to the rules and regulations requiring the designation of a qualified compliance officer to assure day to day compliance with the anti-money laundering compliance program and with the BSA.
Violations of Part 400.3(a)(6) of the Superintendent’s Regulations (“Part 400”), which requires every licensee to maintain a “daily record of checks cashed”, which shall include certain enumerated details for each check, other than a payroll check, draft or money order exceeding $1,500.
Violations of Part 400.3(b), which allows microfilm equipment to be used to record all checks, drafts or money orders cashed in the business, subject to certain enumerated conditions.
Violations of Part 400.3(b)(7), which requires the licensee to maintain an inventory log of microfilm, including certain enumerated information.
Violations of Part 400.3(b)(9), which requires that each roll of microfilm be clearly labeled showing the beginning and ending dates of the period covered.
Violations of Part 400.3(b)(11)(ii) and (iii), which require, respectively, that the licensee verify that all microfilmed records are maintained in an accurate and legible form and that the licensee assure that all personnel working at the locations are familiar with the terms and requirements relating to the use of microfilm equipment by the licensee.
WHEREAS, the Superintendent and the Licensee mutually agree to resolve such Violations by the imposition of a fine in the aggregate amount of $50,000.00 in lieu of commencing a hearing seeking revocation of JCG’s licenses.
Without admitting or denying the aforementioned allegations, JCG freely and voluntarily waives its right to a hearing on the Violations cited above and JCG fully understands the terms and conditions of this Settlement Agreement.
JCG will take all necessary steps to assure that it is in compliance with all applicable laws, rules and regulations.
JCG will preserve all records and related documentation for a period of five years from the date of the last examination. Such records and related documentation shall be readily available for examination by the Banking Department.
As of the date of execution of this Settlement Agreement, JCG shall perform a check of all microfilmed records, as processed in a timely fashion, or, as the case may be, a daily check of records available under the TellerMatrix System, to ascertain that JCG is in full compliance with all regulations relating to the use of microfilm equipment and related records to be maintained thereto.
JCG agrees to pay a fine in the aggregate amount of $50,000.00 to the Superintendent in the following manner: $25,000.00 on the date of execution of this Settlement Agreement and $25,000.00 within ninety (90) days of the effective date of this Settlement Agreement. Each payment shall be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department. Failure to make timely payment, in whole or in part, shall result in immediate revocation of JCG’s licenses.
No later than forty-five (45) days from the date of execution of this SettlementAgreement, JCG submits to the Banking Department a BSA compliance program (the “Compliance Program”), in form and substance satisfactory to the Banking Department.