By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
FOREIGN TRANSMITTAL AGENCY LICENSING
Docket No. 2010-375-CO

CONSENT ORDER

In the Matter of
BRAZ TRANSFERS, INC.

Foreign Transmittal Agency License No(s): FT3346 et al.


WHEREAS, BRAZ TRANSFERS, INC., Saugus, Massachusetts ("Braz Transfers" 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 6th, 2011, 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, Braz Transfers agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of Braz Transfers was conducted pursuant to General Laws chapter 169, section 10, as of November 30, 2009 (the "2009 examination/inspection") 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;

WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Braz Transfers as of November 30, 2009 alleged Braz Transfer's failure to comply with applicable state and federal laws, rules, regulations, and regulatory guidelines governing the conduct of two of the Corporation's authorized agents engaged in the foreign transmittal business in the Commonwealth maintaining foreign transmittal agency license numbers FT6343 and FT5534;

WHEREAS, on December 22, 2010, pursuant to General Laws chapter 169, section 13(b), the Commissioner issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST, Docket No. 2010-375 (the "Temporary Order"), on against two authorized agents of Braz Transfers maintaining foreign transmittal license numbers FT6343 and FT5534;

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order and the Report;

WHEREAS, Braz Transfers cooperated fully with the Division in responding to questions relevant to the examination by conferring with the Division on several dates and is willing to take affirmative steps to address the matters addressed in the Report and this Consent Order;

WHEREAS, without this Consent Order constituting an admission by Braz Transfers of any allegations made or implied by the provisions of the Temporary Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Braz Transfers hereby waives its right to complete the hearing process relative to this proceeding and affirms that it is willing to take all necessary action as set forth in this Consent Order; and

WHEREAS, in recognition of the Division and Braz Transfers having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order on this 6th day of July 2011.

ORDER

NOW COME the parties in the above-captioned matter, the Division and Braz Transfers, and stipulate and agree as follows:

  1. Braz Transfers ceased engaging in the foreign transmittal business in Massachusetts, as that term is defined under Massachusetts General Laws chapter 169, the Division's regulations 209 CMR 44.00 et seq., at 177 Brighton Avenue, Allston, Massachusetts, with license number FT5534 and at 581 Boston Post Road, Marlboro, Massachusetts, with license number FT6343 as of December 22, 2010, pursuant to the provisions of the Division's Temporary Order.
  2. On or about December 23, 2010, Braz Transfers surrendered the Corporation's Massachusetts foreign transmittal agency licenses, license No.(s): FT5534 and FT6343 by filing a letter of surrender to the Division at 1000 Washington Street, 10 th Floor, Boston, Massachusetts 02118-6400.
  3. Braz Transfers shall not engage in check cashing activity either directly or through any agent without first obtaining the relevant license from the Division as required pursuant to General Laws chapter 169A, section 2.
  4. Within ninety (90) days of the effective date of this Consent Order, Braz Transfers 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:
    1. Provide for a review process to assess the compliance of Braz Transfers, and all Massachusetts licensed agents, 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.;
    2. 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;
    3. Identify the title and number of senior management and office personnel necessary to manage adequately and supervise properly the Corporation's foreign transmittal activity and the Anti-Money Laundering policies; 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;
    4. Provide for written procedures adopted by the Corporation identifying the necessary office personnel designated by the Corporation to periodically conduct agent visitations for its Massachusetts licensed office locations to ensure that those agents are in compliance with the provisions of this Order; and
    5. Provide for written policies and procedures adopted by the Corporation identifying the manner in which Braz Transfers approves prospective Massachusetts agent locations including but not limited to, any due diligence procedures adopted by the Corporation prior to submitting an agent/branch license application to the Division.
  5. Braz Transfers shall establish, implement, and maintain policies and training procedures to ensure that all applicable personnel at the Corporation's Massachusetts licensed office locations possess a comprehensive understanding of the Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and its implementing regulations 31 CFR Chapter X, 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 Braz Transfers pursuant to this Section of the Consent Order.
  6. Within sixty (60) days of the effective date of this Consent Order, Braz shall review all transactions processed by the Corporation's Massachusetts licensed locations from January 1, 2008 through December 31, 2009, to identify transactions that would have required the filing of a Currency Transaction Report ("CTR") or a Suspicious Activity Report ("SAR-MSB") in accordance with the requirements of 31 CFR Part 1010.311, 31 CFR Part 1022.320(a)(1) and 31 CFR Part 1022.320(a)(2).
    1. Within ninety (90) days of the effective date of this Consent Order, Braz Transfers shall file all required CTR's and SAR-MSB's as identified in the Corporation's review pursuant to Section 6 of this Consent Order; and
    2. Within ten (10) days of filing the required reports pursuant to Section 6(a), the Corporation shall submit a written progress report to the Division identifying the type and number of transactions that were reported.
  7. Braz Transfers shall establish, implement and maintain procedures to ensure that the relevant agent's license is posted at all Massachusetts licensed locations, as required by the Division's regulation 209 CMR 44.09(3).
  8. Braz Transfers 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, and the Division's regulation 209 CMR 44.00 et seq.
  9. On the thirtieth (30 th) day after the end of each calendar quarter following the date that the Corporation submits its revised Procedures pursuant to Section 4 of this Order, Braz Transfers shall furnish written progress reports to the Division, which shall address and include the following:
    1. A description of the form, content, and manner of any actions taken to address each Section of this Consent Order and the results thereof; and
    2. Written findings prepared by Braz Transfers detailing a review of management's and staff persons' adherence to the policies, programs, and procedures adopted pursuant to this Consent Order and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve Braz Transfers' compliance condition in Massachusetts and the results thereof.
  10. The reporting requirement to the Division referenced in Section 9 of this Consent Order shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this Consent Order from the Commissioner.
  11. 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 Braz Transfers, its successors or assigns, fails to fully and promptly comply with the above provisions.
  12. This Consent Order shall become effective immediately upon the date of its issuance.
  13. The provisions of this Consent Order shall be binding upon Braz Transfers, 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.
  14. In accordance with the terms of the Consent Agreement entered by Braz Transfers and the Commissioner, Braz Transfers has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.
  15. 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.
  16. 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 6th day of July, 2011

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts