By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2014-017
In the Matter of
MONEY TRANSFER INC.
Foreign Transmittal Agency License # FT112152
WHEREAS, SEBIX INTERNATIONAL MONEY TRANSFER INC., Framingham, Massachusetts (Sebix 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 January 2, 2015, 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, Sebixagrees to the issuance of this CONSENT ORDER (Order) by the Commissioner of Banks (Commissioner);
WHEREAS, an examination of Sebix was conducted pursuant to General Laws chapter 169, section 10, as of March 13, 2014 to assess the Corporation’s level of compliance with applicable Massachusetts and federal statutes, rules and regulations governing the conduct of those engaged in the business of a foreign transmittal agency in the Commonwealth;
WHEREAS, the Report of Examination (the Report) issued pursuant to the Division’s examination of Sebix alleged issues of 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; and
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report.
NOW COME the parties in the above-captioned matter, the Division and Sebix, and stipulate and agree as follows:
- Sebix must develop, implement and maintain procedures to ensure that all money remitted to Brazil is processed through entities registered with and authorized by the Central Bank of Brazil.
- Sebix must amend its anti-money laundering program to include risk-based policies, procedures, and controls designed to identify and minimize risks associated with foreign agents and counterparties that facilitate the flow of funds out of the United States in accordance with 31 CFR 1022.210 and the Financial Crimes Enforcement Network’s (FinCEN) Interpretive Release 2004-1.
- Sebix must develop, implement and maintain an effective overall compliance management system and anti-money laundering program with sufficient oversight by ownership and senior management, including but not limited to, adequate policies and procedures, internal monitoring, training and periodic independent testing as required by FinCEN’s regulation 31 CFR 1022.210.
- Sebix must provide for an independent review of the Corporation’s anti-money laundering program as required by FinCEN’s regulation 31 CFR 1022.210(d)(4).
- The independent reviewer must be qualified to conduct an anti-money laundering review and have a complete understanding of federal anti-money laundering requirements and the requirements for foreign transmittal companies under 209 CMR 44.00 et seq.
- The scope and frequency of the review must be commensurate with the risk of the financial services provided by the Corporation.
- The independent reviewer must prepare and submit to the Division and Sebix simultaneously the final written report detailing the findings.
- Sebix must develop, implement and maintain a process for tracking and correcting deficiencies identified by its independent review conducted pursuant to FinCEN’s regulation 31 CFR 1022.210(d)(4).
- Sebix must submit a profit plan together with a statement of the Corporation’s commitment to the continued maintenance of acceptable levels of liquidity and capital. The profit plan should document the goals and strategies for improved profitability and the maintenance of the Corporation’s capital position.
- Sebix must immediately increase its bond coverage to at least $605,449, an amount equal to twice the weekly average of remittances reported in 2013.
- Sebix must develop, implement and maintain the necessary procedures to ensure thatadequate bond coverage is maintained; such bond amount to be in compliance with the requirements set forth in M.G.L. c. 169, section 2. On a quarterly basis, Sebix must assess the total amounts of money or equivalents thereof that Sebix transmits to foreign countries and must increase its bond as necessary to comply with M.G.L. c. 169, section 2. Sebix must include the results of this assessment with the quarterly reports submitted to the Division pursuant to Section 11 of this Order.
- Sebix agrees to refrain from submitting any foreign transmittal agency license applications for any branch or agent office locations until the Commissioner, in his sole discretion, determines that Sebix is in compliance with all provisions of this Order.
- Sebix must address all matters requiring attention set forth in the Report within the time frames contained therein. Sebix must also adopt and implement all corrective actions discussed in the Report.
- Sebix must establish, implement, and maintain procedures and policies to ensure that all applicable personnel receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to the Report and to this Consent Order.
- By the thirtieth (30th) day after the end of each calendar quarter following the effective date of this Order, Sebix must furnish written progress reports to the Division, which shall address and include the following:
- A description of the form, content, and manner of any actions taken to address each Section of this Order and the results thereof; and
- Written findings prepared by Sebix detailing a review of management’s and staff persons’ adherence to the policies, programs, and procedures adopted pursuant to this 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 Sebix’s compliance condition in Massachusetts and the results thereof.
- The reporting requirement to the Division referenced in Section 11of this 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 Order from the Commissioner.
- The provisions of this Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting Sebix, its successors or assigns, if Sebix fails to fully and promptly comply with the above provisions.
- Nothing in this Order shall be construed as permitting Sebix to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
- In consideration of the foregoing provisions of this Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Sebix’s foreign transmittal agency license under Massachusetts General Laws chapter 169, section 12, while this Order is in effect, but subject to Paragraph 16 of this Order.
- Failure to comply with the terms of this Order may constitute grounds for license suspension and/or revocation, or other formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
- This Order shall become effective immediately upon the date of its issuance.
- The provisions of this Order shall be binding upon Sebix, 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 Sebix and the Commissioner, Sebix has waived all rights of appeal that it may have relative to this Order or any of its provisions.
- The provisions of this Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Order shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
- This 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 Order and the Consent Agreement.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 2nd day of January, 2015
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts