FINCEN DIRECTOR FREIS ADDRESSES MTRA ANNUAL CONFERENCEOctober 2007 - The 2007 Annual Conference of the Money Transmitter Regulators Association (MTRA) kicked off on October 9th in Charlotte, North Carolina. Over 200 regulators and industry officials attended the three day event, representing member states and money transmitters across the country. James H. Freis, Jr., Director of the Financial Crimes Enforcement Network (FinCEN) was the keynote speaker. In his address, Director Freis announced the availability of a new resource to help reduce common errors found on Suspicious Activity Reports (SARs). The activities and transactions reported through SARs provide law enforcement and regulatory authorities with useful information to detect and disrupt potentially illegal activities such as money laundering and terrorist financing. The document was compiled after FinCEN completed an analysis of SARs (http://www.fincen.gov/SAR_Common_Errors_Web_Posting.pdf). The conferees also heard presentations from academics who shared their research on money transmission. Dr. Dean Yang from the University of Michigan described his theory linking the volume of transmissions with the degree of control held by the remitter over the ultimate use of the funds. The results of his study of money transmission by Salvadoran migrant workers in Washington, D.C., Virginia and Maryland will be completed in 2008. Dr. Manuel Orozco reviewed and analyzed the main dynamics of the $100 billion in annual remittances from U.S. migrants which represent 30% of global flows. In a separate meeting of regulators, the preliminary results of a MTRA survey of state regulation of money transmission in the U.S. were presented by Nick C. Kyrus and Karen S. Heede. The survey showed that with the exception of Alaska, Montana and South Carolina, 47 states and the District of Columbia require money transmitters to obtain licenses prior to offering services to their residents. Before issuing licenses, most state laws require regulators to make findings about the character and financial responsibility of the applicant and its senior members. Supervision of operations of money transmitters consists of on-site and off-site examinations, review of periodic reports filed by licensees, and resolving consumer complaints. The regulators elected the following MTRA directors and officers for a two year term: Joseph E. Rooney (MD) President and Director, Randall S. James (TX) Vice President and Director, Robert Venchiarutti (CA) Secretary and Director, Tracy M Hudson (WV) Treasurer and Director, Sonya L. Allen (KS) Director, John Bishop (OH) Director, Reitzel Deaton (NC) Director, Greg Gonzales (TN) Director, Nicholas C. Kyrus (VA) Director, and Regina A. Stone (NY) Director. President Rooney announced that the 2008 MTRA Annual Conference will be held at the Snow King Resort, Jackson Hole, Wyoming on September 3-5. MTRA HELD FIRST WEEK-LONG SUCCESSFUL EXAMINERS SCHOOL2 July 2007 - Twenty-five state examiners attended the first week-long MTRA School for Money Transmitter Examiners held in San Francisco, California on June 18-22, 2007. Attendance was limited to the first 25 registrants and due to high demand, another session of the school will be held in Annapolis, Maryland, August 20-24 at the Historic Inns of Annapolis. MTRA president Joseph Rooney praised the organizers and school instructors for their hard work and dedication. He stated that the use of veteran examiners as instructors, the careful selection of relevant topics for discussion, and the prevailing informal atmosphere made the school more meaningful and a great success. Six veteran state examiners made presentations on topics such as planning the exam, analysis of financial statements of money transmitters, data mining, the MTRA core exam, the MTRA rating system, and anti money laundering and OFAC compliance. The instructors were Jeanette Barraza, CAMS, Financial Institutions Supervisor, California; John Bishop, Senior Administrator, OH; Bert Gonzalez, Financial Examiner, TX; Julio Prada, CAMS, Assistant Deputy Commissioner, CA; Julie Vanderslice, CAMS, Financial Examiner Supervisor, WA; Robert Venchiarutti, Deputy Commissioner, California; and Robert Mbama, CAMS, Consultant. The curriculum of the school was developed by the speakers. MTRA STRATEGIC PLANNING8 May 2007 - The MTRA Board of Directors had a strategic planning retreat in Austin Texas last month for the purpose of defining MTRA's mission, objectives/ goals, and devise strategies to meet them over the next five years. The meeting was facilitated by J. Keith Hughey of Wilson, Hughey & Yarbrough, LLC, a management consulting firm, and hosted by Texas Banking Commissioner Randall James. The mission of MTRA, as formulated by the Board, is "to advance the efficient and effective regulation of the money transmission industry". It was agreed that the core values needed to meet MTRA's mission are cooperation, integrity, service, and excellence. The Board's vision for the next five years is the establishment of a cooperative state regulatory framework for the benefit of the member states, the industry and the public. Such a regulatory framework will be established by (a) advancing uniform examination standards, reports, forms and ratings that are crucial in providing value to both the membership and the industry; (b) promote a more efficient and less burdensome state regulatory system that has universal respect and credibility; (c) provide quality educational opportunities and certification to participants through a well defined curriculum: (d) collect and disseminate reliable industry specific data , common analytical standards, and best practices: (e) serves as the authority for money transmission issues on a national scale; and (f) partner with state and federal authorities to further efforts in the direction and elimination of illegal activities, including terrorist financing. MTRA INAUGURATES SCHOOL IN JUNE AND PLANS ANOTHER ONE FOR AUGUST7 May 2007 - Twenty-five state examiners have registered for MTRA's School for Money Transmitter Examiners to be held in San Francisco, California on June 18-22, 2007. The school will run Monday through Friday noon at the Holiday Inn Express Hotel & Suites, 373 S Airport Blvd, San Francisco, located close to the SF Airport. The school will be limited to 25 state examiners. Due to high demand, another session of the school will be held in Annapolis, Maryland, August 20-24 at the Historic Inns of Annapolis. The curriculum of the school has been developed by Robert Mbama, a former money transmitter supervisory examiner at the California Department of Financial Institutions and a group of supervisory examiners headed by MTRA directors Robert Venchiarutti of California and John Bishop of Ohio. Six instructors will cover topics such as planning the exam, analysis of financial statements of money transmitters, discussion of the core exam, discussion of the MTRA rating system, and anti money laundering and OFAC compliance. ALLEN OF KANSAS AND STONE OF NEW YORK APPOINTED TO MTRA BOARD1 May 2007 - The MTRA Board of Directors appointed Sonya L. Allen of Kansas and Regina A. Stone of New York to fill two director vacancies on the MTRA board effective May, 2007. They will serve on the board until election time on October 9th 2007. Ms Allen is General Counsel., Office of the Kansas Bank Commissioner and Ms. Stone is Deputy Superintendent, New York Banking Department. Both have long regulatory service and have been active with MTRA. This brings the number of MTRA directors to ten. GODDARD OF INDIANA RETIRES FROM PUBLIC SERVICE AND FROM MTRA BOARD30 April 2007 - The MTRA Board of Directors accepted the resignation of board member Philip Goddard of Indiana effective April 30, 2007. Mr. Goddard is retiring from the Indiana Department of Financial Institutions (IDFI) after 32 years of service. Prior to joining the IDFI, Mr. Goddard was a senior attorney for the Indiana Legislative Services Agency. He continued drafting legislation at the IDFI modernizing most of the statutes affecting the financial industry, and rising to the position of General Counsel and Deputy Commissioner. Mr. Goddard was elected to the board of directors of MTRA in 2001 and president for a two- year term in 2003. He was reelected to the board as director in 2005. Praising his service, current MTRA president Joseph Rooney stated that Phil will be remembered for his foresight, courage, and leadership at a time MTRA's services to the states were much in demand. JAMES H. FREIS, JR. NAMED DIRECTOR OF FINCEN5 March 2007 - U.S. Treasury Secretary Henry M. Paulson, Jr. named James H. Freis, Jr. as the new Director of the Financial Crimes Enforcement Network (FinCEN). Freis currently serves as Deputy Assistant General Counsel for Enforcement & Intelligence. As Deputy Assistant General Counsel, Freis provides legal support to Treasury's Office of Terrorism and Financial Intelligence, including supervising the legal counsel to FinCEN, the Office of Foreign Assets Control, and the Treasury Executive Office for Asset Forfeiture. He is also responsible for developing international financial measures against rogue states. Before coming to Treasury, Freis served as Senior Counsel in the Legal Service of the Bank for International Settlements in Basel, Switzerland, where he supported the banking and risk control departments in providing financial services to central banks and international organizations for management of monetary reserves. He also had regular interaction with the Basel-based committees of experts setting international financial standards. He previously served in the Federal Reserve Bank of New York's legal department, where he advised on payment and settlement systems issues at wholesale and retail levels, administration of foreign government and central bank accounts, and legislative and regulatory reform. He was part of the successful defense of the Bank before the Iran-U.S. Claims Tribunal in The Hague with respect to the management of Iranian funds during the hostage crisis. Freis also spent one year working in the financial sector in Germany. Freis earned his Juris Doctorate from Harvard Law School and his bachelors degree from Georgetown University, graduating with honors from each institution. He is an attorney-at-law and a Chartered Financial Analyst (CFA) charterholder. Freis currently resides in Washington, DC with his wife and two children. Freis replaces Robert Werner, who resigned in December 2006. ANNUAL MTRA CONFERENCE DATES AND LOCATIONS ANNOUNCED24 January 2007 - The MTRA Board of Directors is pleased to announce the dates and locations for the 2007 and the 2008 MTRA annual meetings and conferences. The 2007 MTRA Annual Meeting and Conference will be held in Charlotte, North Carolina and the 2008 Annual Meeting and Conference will be held at Jackson Hole, Wyoming. Please mark your calendars and plan to attend: 2007 MTRA ANNUAL MEETING AND CONFERENCE 2008 MTRA ANNUAL MEETING AND CONFERENCE MTRA BOARD MEMBER GONZALES APPOINTED TENNESSEE BANKING COMMISSIONER20 January 2007 - The MTRA Board of Directors congratulates board member Greg Gonzales for his appointment to fill the position of Commissioner, Tennessee Department of Financial Institutions. Greg was named Commissioner and to the cabinet by Tennessee Governor Phil Bredesen and took the oath of office during the Governor's second inauguration on January 20, 2007. He is the Department's 18th Commissioner. Gonzales has served as the Department’s Acting Commissioner since December 2005. He has worked for Financial Institutions since 1986, and his duties have included serving as general counsel, as well as directing budget, human resources and legislative efforts for the Department. Gonzales is a Tennessee Technological University graduate and holds a law degree from the University of Tennessee. "I am grateful to Governor Bredesen for his confidence in me," Gonzales said. “After serving more than 20 years in the Department of Financial Institutions in a number of different roles, including most recently as Acting Commissioner, I am honored to lead this agency. I will continue the Department's work in ensuring that Tennessee's financial institutions remain safe and sound for the people of Tennessee." The Department of Financial Institutions is responsible for monitoring the safety and soundness of all state-chartered depository financial institutions and for ensuring that licensed non-depository financial institutions comply with governing laws and regulations. Gonzales has been an active member of the MTRA board of directors for many years, and more recently served as Vice President. He was instrumental in drafting legislative guidelines for money transmission laws, used widely by many states in modernizing their money transmission laws. He was also instrumental in drafting an interstate cooperative agreement, executed so far by 34 states that regulate money transmission. ARIZONA JUDGE BARS WESTERN UNION SEIZURES11 January 2007 - Western Union Co, Englewood, Colorado, won a court ruling that bars Arizona from seizing funds sent by customers in other states to Mexico as part of a probe into drug and immigrant smuggling. Arizona Atty. Gen. Terry Goddard obtained a warrant in September to intercept transfers of $500 or more between 28 U.S. states and 26 places in Sonora, Mexico, so he could look for criminal ties. The Superior Court in Maricopa County ruled that Arizona lacked authority over transactions from other states or enough cause to suspect wrongdoing. Goddard, however, promised to appeal. The decision does not affect the legality of similar warrants that Goddard's agency uses to seize money sent directly to or from Arizona Western Union had contended that the program was unconstitutional and threatened its relationship with customers. The warrants forced the intended recipients of money transfers to call and talk to a police officer on a financial task force, who decided whether a transfer was legitimate. |