|Organization:||Division of Banks|
Consent Order Doubles Building Society, LLC, dba Small Financial Organization
Table of Contents
Doubles Building Society, LLC, dba Small Financial Organization, Worcester, MA - Consent Order
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2009-114-CO
In the Matter of
DOUBLES BUILDING SOCIETY, LLC
d/b/a SMALL FINANCIAL ORGANIZATION
Foreign Transmittal Agency License Nos. FT5741 and FT6557
WHEREAS, Doubles Building Society, LLC, d/b/a Small Financial Organization, Worcester, Massachusetts ("Doubles Building Society" or the "Company"), 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 April, 28, 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, Doubles Building Society agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, 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. 2009-114 (the "Temporary Order"), against Doubles Building Society on July 2, 2009, as a result of Doubles Building Society's alleged failure to demonstrate and maintain the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that its foreign transmittal business will be operated honestly, fairly, and soundly in the public interest in violation of General Laws chapter 169, section 6 and the Division's regulation 209 CMR 44.03;
WHEREAS, by letter dated July 14, 2009, Doubles Building Society filed a response to the Temporary Order with the Division whereby the Company requested an administrative hearing in accordance with Massachusetts General Laws chapter 30A;
WHEREAS, on July 22, 2009, Doubles Building Society appeared at the Division's offices for an informal conference to discuss the matters raised by the Temporary Order;
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order;
WHEREAS, without this Consent Order constituting an admission by Doubles Building Society 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, Doubles Building Society 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 Doubles Building Society 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 28 thday of April 2010.
NOW COME the parties in the above-captioned matter, the Division and Doubles Building Society, and stipulate and agree as follows:
- No earlier than one hundred eighty (180) days from the effective date of this Consent Order, the Division shall conduct an examination/inspection of Doubles Building Society, at Doubles Building Society's expense, which shall include, but not be limited to: a review of all transactions conducted since the effective date of this Consent Order; an examination of the Company's anti-money laundering program; examination of the Company's compliance with the Division's regulation 209 CMR 44.00 et seq.; and a review of the Company's financial records.
- Doubles Building Society shall engage an independent auditor or consultant ("Auditor") to conduct an independent review of the Company's anti-money laundering program to assess whether, and to what extent, Doubles Building Society 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 Company's own policies, procedures, and internal controls. Doubles Building Society shall obtain the Commissioner's written approval of the proposed Auditor before the independent review is initiated.
- 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.
- The Auditor's review shall include a review of Double's foreign transmittal activity occurring from the date of this Consent Order up to, and including, October 31, 2010. The Auditor's written report must be submitted to the Commissioner no later than December 31, 2010. 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 Company's Massachusetts transactions.
- On the thirtieth (30 th) day after the end of each calendar quarter following the date of this Consent Order, beginning with the calendar quarter ending June 30, 2010, Doubles Building Society shall furnish written progress reports to the Division, which shall address and include the following:
- Quarterly financial statements prepared in accordance with generally accepted accounting principles ("GAAP"), that include a balance sheet and a statement of income and expense signed and dated under the pains and penalties of perjury by an authorized senior officer of Doubles Building Society who possesses the requisite knowledge and experience to provide a certification to the Division of the information therein reported;
- A report listing of the total amount of transactions and amounts received during the quarter for remittance to foreign countries;
- Written findings prepared by the Company 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 Doubles Building Society's compliance condition in Massachusetts and the results thereof.
- Doubles Building Society 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 reporting requirements contained in Paragraph 5 of this Consent Order shall remain in effect and shall not be amended or rescinded without prior written modification, termination, or suspension of the applicable provisions of this Consent Order from the Commissioner.
- This Consent Order shall become effective immediately upon the date of its issuance.
- The provisions of this Consent Order shall be binding upon Doubles Building Society and its officers and directors, and their successors or assigns.
- Failure to comply with the terms of this Consent Order shall constitute grounds for license denial, suspension, and/or revocation pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
- In accordance with the terms of the Consent Agreement entered by Doubles Building Society and the Commissioner, Doubles Building Society has waived all rights of appeal that it may have.
- 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 and the Consent Agreement.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 28th day of April, 2010
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts