By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
FOREIGN TRANSMITTAL
AGENCY LICENSING
Docket No. 2011-016-CO

CONSENT ORDER

In the Matter of
Girosol of Massachusetts Corporation
North Miami Beach, Florida

Foreign Transmittal Agency License No(s):
FT1762 et al.


WHEREAS, Girosol of Massachusetts Corporation, North Miami Beach, Florida ("Girosol" 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 June 10, 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, Girosol agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");


WHEREAS, an examination/inspection of Girosol was conducted pursuant to General Laws chapter 169, section 10, as of February 2, 2010 (the "2010 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; and


WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Girosol as of February 2, 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.

ORDER


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


  1. Within ninety (90) days of the effective date of this Consent Order, Girosol 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 Girosol, 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;

    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; and

    3. Identify the type and number of senior management and officer personnel necessary to adequately manage and properly supervise 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.

  2. Girosol 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 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 Girosol pursuant to this Section of the Consent order
  3. Girosol shall establish and implement policies and procedures that ensure that the Corporation identifies the appropriate staff member or personnel to ensure that all transaction activity is monitored, flagged and reported if applicable to the appropriate agencies when required. It being understood that the Corporation shall not delegate such responsibility to its Massachusetts licensed office locations.

  4. Girosol shall establish, implement and maintain policies and procedures to ensure that any client funds collected from Massachusetts consumers by the Corporation's licensed office locations are monitored and maintained in an appropriate account in accordance with Girosol's agent agreement with its Massachusetts agents, and Massachusetts General Laws chapter 169.

  5. Within thirty (30) days of receipt of the relevant invoice from the Division, Girosol shall submit payment in full of the amount owed for the costs of the Division's February 2, 2010 examination/inspection. The payment shall be made payable to the "Commonwealth of Massachusetts" and mailed to the Office of the Commissioner of Banks, Attn: Non-Depository Institution Supervision, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400.

  6. Girosol 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. Such obligations shall necessarily include the duty to address and correct, within twenty (20) days of receipt of the Report, all violations and areas of concern addressed in the Report.

  7. Within twenty (20) days of Girosol's receipt of the Report, the Corporation shall submit to the Commissioner, a written response that addresses each of the violations and areas of concern specified in the Report. The written response shall describe the revised policies and procedures adopted by Girosol to implement all corrective actions set forth in: (i) the "Examiner's Comments and Conclusions" section of the Report and (ii) the provisions of this Consent Order; and

  8. On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Girosol 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 Girosol 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 Girosol's compliance condition in Massachusetts and the results thereof.

  9. The reporting requirement to the Division referenced in Section 8 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.

  10. 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 Girosol, its successors or assigns, fails to fully and promptly comply with the above provisions.

  11. This Consent Order shall become effective immediately upon the date of its issuance.

  12. The provisions of this Consent Order shall be binding upon Girosol, 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.

  13. In accordance with the terms of the Consent Agreement entered by Girosol and the Commissioner, Girosol has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.

  14. 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.

  15. 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 10th day of June, 2011

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts