Record Number to Attend MTRA Five-Day Operations School

A record number of examiners have registered to attend MTRA’s five-day Operations School in San Francisco, California from March 30 – April 3, 2009. This five day, hands-on course will be the largest ever with 57 attendees from 20 states including Alaska and Hawaii. The School is designed to help examiners gain an understanding of a foreign transmitter’s operations. Attendees will be exposed to the inner workings of a money transmitter’s operations from receipt to delivery of the funds, with special emphasis on the foreign currency function. Other operations topics covered are a money transmitter’s agent operations, IT system and related internal control risks. This school will also include an in-depth introduction to the money transmission industry, as well as AML/BSA compliance and safety and soundness issues, including financial statement and permissible investments analysis. Interactive class exercises and case studies will give the students an opportunity to apply the concepts presented at this school.

FinCEN and IRS Release MSB BSA/AML Examination Manual

The Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS) released today the MSB Bank Secrecy Act/Anti-Money Laundering Examination Manual (MSB BSA/AML Examination Manual). The manual’s release marks an important step forward in the effort to ensure the consistent application of the BSA to all Money Services Businesses.

The MSB BSA/AML Examination Manual was developed by the Financial Crimes Enforcement Network (FinCEN), Internal Revenue Service (IRS), and the state banking agencies through the Conference of State Bank Supervisors (CSBS) and Money Transmitter Regulators Association (MTRA).

The MSB BSA/AML Examination Manual emphasizes an organization’s responsibility to establish and implement risk-based policies, procedures, and processes to comply with the BSA and safeguard its operations from money laundering and terrorist financing. The BSA/AML examination procedures will guide examiners through an evaluation of an organization’s BSA/AML compliance program regardless of its size, complexity or business lines. The MSB BSA/AML Examination Manual provides narrative guidance and resource materials as well as specific examination procedures. This includes an overview of the BSA requirements and the federal and state banking agencies’ supervisory expectations in this area.

FinCEN is planning telephone conferences to brief the industry and field examiners on the MSB BSA/AML Examination Manual for early 2009. Registration details for the industry calls will be communicated shortly to the industry via separate notice. Money Service Businesses are encouraged to participate in these voluntary sessions. (More information on these events will be released at a later date.). The manual can be found at www.fincen.gov/news_room/rp/msb_exam_materials.html


The Conference of State Bank Supervisors (CSBS) is the nationwide organization for state banking, representing the bank regulators of the 50 states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands, and approximately 6,100 state-chartered financial institutions. CSBS also is responsible for improving the quality of state bank supervision by providing department performance evaluation and accreditation programs and supervisory education/training programs for state banking department personnel.

The Money Transmitter Regulators Association (MTRA) is a national non-profit organization dedicated to the efficient and effective regulation of money transmission industry in the United States of America. The MTRA membership consists of state regulatory authorities in charge of regulating money transmitters and sellers of traveler’s checks, money orders, drafts and other money instruments. Incorporated in Texas in 1989, MTRA is governed by a ten-member board of directors elected to serve two-year terms.

Information Contact:
Mary White, Vice President, Communications, CSBS, mwhite@csbs.org or 202-728-5715
Susan Shermer, Administrator, MTRA, sshermer@shermer-assoc.com or 717-545-9991

MTRA Holds Another Successful Conference

MTRA’s 18th Annual Conference was held September 2-5, 2008 at Snow King Resort, Jackson Hole, Wyoming. More than 200 regulators and industry officials attended the four day event, representing 28 member states and numerous money transmitters across the country. The conference was opened by MTRA President Joseph E. Rooney of Maryland who outlined the objectives, goals and accomplishments of the association. Wyoming Commissioner Jeffrey C. Vogel welcomed the conferees to Wyoming and praised the record and achievements of MTRA. The conference included separate, as well as, joint sessions of regulators and industry representatives. In a closed session of regulators, there was a presentation from FinCEN and the IRS on Bank Secrecy Act issues emphasizing the need to improve cooperation between states and federal agencies.

This year’s theme was “Taking the High Road”. The program provided an opportunity to facilitate networking and the exchange of ideas and information between and among industry and regulators. There were timely presentations on Mobile Payments, Private Equity Investments in Money Transmitters, and Monitoring Agents of Money Transmitters. There was also a discussion of the FinCEN case against Sigue, LLC. Lastly, a panel consisting of FinCEN, the FDIC and Banco Popular North America officials lead a healthy discussion of what is being done to address the problem of closing bank accounts of money transmitters.

President Joseph E. Rooney announced that MTRA will hold a 5-day examiners’ school in the first quarter of 2009. The school’s core objective is to provide examiners and analysts in-depth and comprehensive examination procedures and concepts for intrastate and interstate examinations of money transmitters. It will help many states which do not examine money transmitters develop examination programs.

President Rooney thanked the MTRA Board of Directors and MTRA Administrator Susan Shermer for the organization of the conference. He also presented a commemorative plaque to Randall James, MTRA Vice President and Texas Banking Commissioner, who is retiring, and announced that Ms Stephanie Newberg, Deputy Commissioner, Texas Banking Department was appointed by the MTRA board to fill the remaining term of Mr. James. CSBS Chairman Timothy J. Karsky also presented a framed resolution from CSBS honoring Mr. James. Finally, President Rooney announced that the 2009 conference will be held at Stoweflake Resort & Conference Center, Stowe, VT – August 31-Sept 3, 2009.

Newberg Appointment to MTRA Board

Stephanie Newberg, Deputy Commissioner, Texas Banking Department, has been appointed a member of the board of directors of MTRA to fill the unexpired term of Randal James, who announced his retirement at the end of August, 2008. Mr. James was vice president for the last three years. He was elected to the Board in 2003. Mr. James was honored by the board of directors of both MTRA and CSBS at the MTRA annual conference in September 2008 for outstanding services to both associations and for excellent public service. Stephanie Newberg is not a stranger to MTRA. She has been an active participant for a number of years. Stephanie joined the Department of Banking in November 1992 overseeing among other areas the regulation of money service businesses. She is also active on various BSAGAA committees. Stephanie is very excited about joining the board and contributing to the MTRA mission of advancing the efficient and effective regulation of the money transmission industry.

MTRA Intermediate Examiners School a Big Success

MTRA held a successful five-day intermediate examination school in Miami, Florida from April 21 – April 25, 2008. This five day, hands-on course was attended by 34 regulators from 17 states. The objective of the school was to offer the tools to become a proficient examiner, using MTRA joint examination procedures to evaluate money transmitters, and to provide networking opportunities with fellow state examiners. The school curriculum incorporated safety and soundness and compliance considerations in examining money transmitters, and the class used the MTRA rating system in simulated examinations. Students learned mining techniques using actual data to assure compliance with anti-money laundering laws and detect violations, and performed computer aided instruction and exercises.

The school curriculum has been designed by the MTRA Education Committee. The school was taught by veteran State regulators: John Bishop, Senior Administrator, Ohio Division of Financial Institutions; Rollin Badal, Financial Examiner, Maryland Office of the Commissioner of Financial Regulation; Bert Gonzalez, Financial Examiner, Texas Department of Banking; and Tom McVey, Jr., Chief Examiner, West Virginia Division of Banking.

Nick C. Kyrus, Deputy Commissioner of Financial Institutions in Virginia, and MTRA past president and current director attended, and commended the instructors for their hard work and dedication. Mr. Kyrus pledged MTRA’s support of the professional development of examiners and announced that MTRA is planning a beginners school for early 2009.