Related to:
Consent Order

Consent Order Real Transfer, Inc

Date: 09/26/2011
Organization: Division of Banks
Docket Number: 2011-032-CO
Location: Pompano Beach, FLA

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
FOREIGN TRANSMITTAL
AGENCY LICENSING
Docket No. 2011-032-CO

CONSENT ORDER

In the Matter of
Real Transfer, Inc
Pompano Beach, Florida

Foreign Transmittal Agency License No(s):FT6692 et al.

WHEREAS, Real Transfer, Inc., Pompano Beach, Florida ("Real Transfer" 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 September 26, 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, Real Transfer agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of Real Transfer was conducted pursuant to General Laws chapter 169, section 10, as of October 25, 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 Real Transfer as of October 25, 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 Real Transfer, and stipulate and agree as follows:

 

  1. Real Transfer 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 the Division's regulation 209 CMR 44.07.
     
  2. Within sixty (60) days of the effective date of this Consent Order, Real Transfer shall review all transactions processed by the Corporation's Massachusetts licensed locations since July 20, 2009, to identify transactions that would have required the filing of a Suspicious Activity Report ("SAR-MSB") in accordance with the requirements of 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, Real Transfer shall file all required SAR-MSB's as identified in the Corporation's review pursuant to Section 2 of this Consent Order; and
       
    2. Within ten (10) days of filing the required reports pursuant to Section 2(a), the Corporation shall submit a written progress report to the Division identifying the type and number of transactions that were reported.
       
  3. Real Transfer 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.
     
  4. Real Transfer shall establish, implement and maintain policies and procedures to ensure that the Corporation obtains the Commissioner's prior written approval of any change in or closing of an agent location in accordance with the Division's regulation 209 CMR 44.09(2).
     
  5. Real Transfer shall establish, implement and maintain policies and procedures to ensure that the Corporation maintains a surety bond in the appropriate amount in accordance with the requirements of Massachusetts General Laws chapter 169, section 2.
     
  6. Within ninety (90) days of the effective date of this Consent Order, Real Transfer 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 Real Transfer, 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;
       
    3. Provide for written procedures adopted by Real Transfer 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 Consent Order; and
       
    4. 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;
       
  7. Immediately upon execution of this Consent Order, Real Transfer shall withdraw all pending foreign transmittal agency license applications for branch or agent office locations that have been filed with the Division. Real Transfer agrees to refrain from submitting any foreign transmittal agency license applications for any branch or agent office locations for a period of twelve (12) months from the effective date of this Consent Order unless the Commissioner, in his sole discretion, agrees to review such an application earlier.
     
  8. Real Transfer shall engage an independent auditor or consultant ("Auditor") to conduct annual reviews and produce written reports of the Corporation's anti-money laundering program to assess whether, and to what extent, Real Transfer 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.
     
  9. No later than forty-five (45) days after the completion of the annual reviews described in Section 8 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.
     
  10. Real Transfer acknowledges and agrees that the Division shall conduct an examination/inspection of the Corporation in six (6) months. Such examination/inspection may be conducted without prior notification to Real Transfer 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. The provisions of this Section shall not prohibit the Division from conducting an inspection of Real Transfer 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. It being understood that if the Commissioner determines that Real Transfer, or its partners, or their successors or assigns, has violated or is about to violate any provision of this Consent Order, the Commissioner make take any affirmative steps as may be necessary to carry out the provisions of General Laws chapter 169, section 13.
     
  11. Within thirty (30) days of receipt of the relevant invoice from the Division, Real Transfer shall submit payment in full of the amount owed for the costs of the Division's October 25, 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.
     
  12. Real Transfer 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 regulation 209 CMR 44.00 et seq., and the Bank Secrecy Act (31 U.S.C. § 5311 et seq.) and its implementing regulation 31 CFR Chapter X. 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.
     
  13. Within twenty (20) days of Real Transfer'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 Real Transfer 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
     
  14. On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Real Transfer 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 Real Transfer 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 Real Transfer's compliance condition in Massachusetts and the results thereof.
       
  15. The reporting requirement to the Division referenced in Section 14 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.
     
  16. 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 Real Transfer, its successors or assigns, fails to fully and promptly comply with the above provisions.
     
  17. This Consent Order shall become effective immediately upon the date of its issuance.
     
  18. The provisions of this Consent Order shall be binding upon Real Transfer, 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.
     
  19. In accordance with the terms of the Consent Agreement entered by Real Transfer and the Commissioner, Real Transfer has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.
     
  20. 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.
     
  21. 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 26th day of September, 2011

By:
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts

(Order Terminated on January 4, 2013)

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