COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2010-204
In the Matter of
HODAN GLOBAL MONEY SERVICES, INC.
Foreign Transmittal Agency License No: FT3735
WHEREAS, HODAN GLOBAL MONEY SERVICES, INC., Minneapolis, Minnesota ("Hodan Global Money" or the "Corporation"), a licensed foreign transmittal agency under Massachusetts General Laws chapter 169 has been advised of its right to Notice and Hearing pursuant to General Laws chapter 169, section 13, and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER ("Consent Agreement") with representatives of the Division of Banks ("Division") dated July 20, 2010, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a foreign transmittal agency, Hodan Global Money agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, an examination/inspection of Hodan Global Money was conducted pursuant to General Laws chapter 169, section 10, as of February 8, 2010, to assess the Corporation's level of compliance with applicable state and federal laws, rules, regulations and regulatory bulletins governing the conduct of those engaged in the business of a foreign transmittal agency in the Commonwealth; and
WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Hodan Global Money as of February 8, 2010 alleged substantial non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of foreign transmittal agency in the Commonwealth.
NOW COME the parties in the above-captioned matter, the Division and Hodan Global Money, and stipulate and agree as follows:
- Hodan Global Money's foreign transmittal agency license number FT3735 shall be suspended for a period of at least six (6) months from the effective date of this Consent Order ('Suspension Period"). During the period that the suspension is in effect, Hodan Global Money, all employees and all officers, directors, employees, independent contractors, or agents, operating on behalf of the Corporation shall refrain from engaging in the activities of a foreign transmittal agency, as defined under Massachusetts General Laws chapter 169, section 1 and 209 CMR 44.00 et seq. During the Suspension Period, Hodan Global Money will refrain from engaging in the business of receiving deposits of money for the purpose of transmitting the same or equivalents thereof to foreign countries in Massachusetts.
- To the extent that Hodan Global Money, wishes to resume or engage in the foreign transmittal business at the expiration of the 6-month term as set forth above, Hodan Global Money may submit a written request for reinstatement to the Commissioner. The Commissioner shall consider the information provided in conjunction with the request for reinstatement and it shall be in the Commissioner's sole discretion to determine whether it would then be appropriate to permit Hodan Global Money to resume business as a foreign transmittal agent in the Commonwealth. In determining whether Hodan Global Money has satisfactorily demonstrated that it meets or exceeds the minimum standards for reinstatement of the foreign transmittal agency license, the Commissioner will:
- Consider whether Hodan Global Money has successfully developed and implemented revised internal policies and quality control procedures as set forth in: this Consent Order; the findings of the Report; and as specifically enumerated in Paragraph 6 of this Consent Order; and
- The Commissioner, may in his sole discretion determine that in order to evaluate the measures implemented by Hodan Global Money, the Division conduct an examination/inspection of Hodan Global Money's books, records, accounts, procedures, and policies prior to any reinstatement of the Corporation's foreign transmittal agency license, so that a finding on the request for reinstatement can be made. Notwithstanding Hodan Global Money's suspended status at the time of the examination/inspection, it is understood that such examination/inspection shall be conducted under the provisions set forth in General Laws chapter 169, section 10.
- Within thirty (30) days of the effective date of this Consent Order, Hodan Global Money shall engage an independent auditor or consultant ("Auditor") to conduct quarterly reviews and produce written reports of the Corporation's anti-money laundering program to assess whether, and to what extent, Hodan Global Money is operating in compliance with the requirements of the Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and its implementing regulations 31 CFR Part 103.00, Massachusetts General Laws, chapter 169, 209 CMR 44.00 et seq., and the Corporation's own policies, procedures, and internal controls. It being understood that Hodan Global Money shall obtain the Commissioner's written approval of the Corporation's proposed Auditor before any such review is initiated. Upon the Commissioner's approval of the Auditor, the Auditor's review shall commence within thirty (30) days after the Commissioner's approval.
- At a minimum, the scope of the Auditor's review will conform to the Department of the Treasury Financial Crimes Enforcement Network's ("FINCEN") Guidance issued September 22, 2006, FIN-2006-G012.
- No later than forty-five (45) days after the completion of the quarterly review described in Paragraph 3 of this Consent Order, the Auditor's written report must be submitted to the Commissioner. The report shall document: the scope of review; procedures performed; transaction testing completed; findings of the review; and recommendations to management for corrective actions, if any; and statistical data summarizing the Corporation's Massachusetts transactions.
- Within ninety (90) days of the effective date of this Consent Order, Hodan Global Money shall submit revised, written internal policies and quality control procedures ("Procedures") designed to maintain compliance with applicable laws, regulations, and rules governing the conduct and operation of business as a foreign transmittal agent in the Commonwealth. The Procedures shall:
- Include a written description of the revised policies and procedures to be adopted by Hodan Global Money to address (i) the Examiner's Comments and Conclusions section of the Report and (ii) the provisions of this Consent Order;
- Provide for a review process to assess the compliance of Hodan Global Money, and all applicable employees, staff, and independent contractors who operate on behalf of the Corporation with (i) the statutes, regulations, rules, and other relevant provisions of law applicable to those engaged in the foreign transmittal business in the Commonwealth;
- Provide for adequate training to applicable staff persons, conducted by qualified and trained personnel, which includes, but is not limited to, proper instruction, adequate supervision and ongoing training to ensure proper implementation and execution of the revised policies and procedures implemented pursuant to this Consent Order;
- Hodan Global Money shall establish, implement, and maintain operating policies and training procedures to ensure that all applicable personnel at the Roxbury, Massachusetts branch office location possess a comprehensive understanding of the Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and its implementing regulations 31 CFR Part 103.00, Massachusetts General Laws, chapter 169, 209 CMR 44.00 et seq., and the Corporation's own policies, procedures, and internal controls. Such training shall ensure the proper implementation and execution of the revised practices and procedures adopted by Hodan Global Money pursuant to this Section of the Consent Order; and
- Identify the type and number of senior management and officer personnel necessary to manage adequately and supervise properly the Corporation's foreign transmittal activity and the Anti-Money Laundering; ensure that each individual identified possesses the ability, experience, and other qualifications necessary to perform competently present and anticipated duties, to follow and enforce the Corporation's revised policies and procedures adopted pursuant to this Consent Order.
- For a period of twenty-four (24) months from the effective date of this Consent Order, Hodan Global Money acknowledges and agrees that the Division may conduct examinations/inspections of the Corporation on intervals of not less than six (6) months. Such examinations/inspections may be conducted without prior notification to Hodan Global Money and will assess the Corporation's level of compliance with state and federal laws, rules, regulations and regulatory bulletins governing the conduct of those engaged in the business of a foreign transmittal agency in the Commonwealth as well as the Corporation's compliance with the provisions of this Consent Order. Notwithstanding the revised examination/inspection cycle anticipated above, the provisions of this Paragraph of the Consent Order shall not prohibit the Division from conducting an inspection of Hodan Global Money pursuant to the authority granted to the Division under General Laws chapter 169, section 10 to investigate: (a) any complaint which is received by the Division against the Corporation or (b) any information received by the Division which has a tendency to suggest that the Corporation has engaged, or is engaged, or is about to engage in acts or practices in violation of the provisions of General Laws chapter 169, or any rule or regulation issued thereunder, or any other law, rule, or regulation applicable to the conduct of the licensed business.
- Hodan Global Money shall submit payment in satisfaction of the full amount owed for the costs of the Division's 2010 examination/inspection as set forth in the relevant invoice issued to Hodan Global Money. The payment shall be made payable to the "Commonwealth of Massachusetts" and mailed to Division of Banks, Commonwealth of Massachusetts, 1000 Washington Street, 10 th Floor, Boston Massachusetts 02118-6400 within 30 days of receipt of the invoice.
- Hodan Global Money shall comply with all laws and regulations applicable to its conducting the business of a foreign transmittal agency, including, but not limited to, Massachusetts General Laws chapter 169, the Division's regulations 209 CMR 44.00 et seq., and the Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and its implementing regulations 31 CFR Part 103.00.
- The provisions of this Consent Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting Hodan Global Money, its successors or assigns, fails to fully and promptly comply with the above provisions.
- This Consent Order shall become effective immediately upon the date of its issuance.
- Failure to comply with the terms of this ORDER shall constitute grounds for license suspension and/or revocation pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
- The provisions of this Consent Order shall be binding upon Hodan Global Money, its officers and directors, their successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
- In accordance with the terms of the Consent Agreement entered by Hodan Global Money and the Commissioner, Hodan Global Money has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.
- The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent Order shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
- This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 20th day of July, 2010
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts
(This Consent Order has been superseded and replaced by a revised Consent Order effective February 4th, 2015)