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Is a state-licensed check-cashing business exemptible under the BSA?

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Is a state-licensed check-cashing business exemptible under the BSA?

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The reformed CTR exemption regulations do not distinguish between a “licensed” or “non-licensed” business. In determining whether any check-cashing business is eligible for exemption from currency transaction reporting requirements, a depository institution must determine whether the business falls into either of two categories (Listed or Non-listed Businesses) identified in the Bank Secrecy Act (BSA) regulation. If a business engages in money service business activities (e.g., money transmission or check cashing), it may be treated as a non-listed business so long as no more than 50% of its gross revenues is derived from one or more of the ineligible business activities listed in the exemption regulation. One of the ineligible business activities listed in the regulation is serving as a financial institution. Under the BSA, the definition of “Financial Institution” includes money services businesses (MSBs).

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The reformed CTR exemption regulations do not distinguish between a “licensed” or “non-licensed” business. In determining whether any check-cashing business is eligible for exemption from currency transaction reporting requirements, a depository institution must determine whether the business falls into either of two categories (Listed or Non-listed Businesses) identified in the Bank Secrecy Act (BSA) regulation. If a business engages in money service business activities (e.g., money transmission or check cashing), it may be treated as a non-listed business so long as no more than 50% of its gross revenues is derived from one or more of the ineligible business activities listed in the exemption regulation. One of the ineligible business activities listed in the regulation is serving as a financial institution. Under the BSA, the definition of “Financial Institution” includes money services businesses (MSBs). So, for example, a check casher (whether licensed or non-licensed) that cashes

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