Yes. Financial Service Centers that meet one or more of the definitions of a type of “Money Services Business” (MSB) (e.g., check cashing) are designated as MSBs and must comply with the federal Bank Secrecy Act requirements applicable to it. MSBs are subject to examination by the Internal Revenue Service. More information about the federal regulation of Financial Service Centers can be found at www.msb.gov
. At the state level, Financial Service Centers must also adhere to state laws and regulations in the majority of jurisdictions, including a requirement that they be licensed or registered. Financial Service Centers that offer payday loans must also comply with additional regulations, mainly at the state level, typically by a state’s department of banking or similar agency. Please contact us
for help if you have been contacted by the IRS, or need assistance to comply with your state and federal requirements.