Related to:
Order

Order Real Transfer, Inc.

Date: 11/22/2017
Organization: Division of Banks
Docket Number: 2014-021
Location: Marlborough, MA

Real Transfer, Inc., Marlborough, MA - Order to show cause

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
FOREIGN TRANSMITTAL
AGENCY LICENSING
Docket No. 2014-021

ORDER TO SHOW CAUSE AND
NOTICE OF RIGHT
TO A HEARING

In the Matter of

REAL TRANSFER, INC.
Marlborough, Massachusetts

Foreign Transmittal Agency License No(s).:
FT926441 et al.

ADMINISTRATIVE COMPLAINT

The Commonwealth of Massachusetts Division of Banks (Division), by and through the Commissioner of Banks of the Commonwealth of Massachusetts (Commissioner), for its Order to Show Cause and Notice of Right to a Hearing (Order and Notice), alleges as follows:

  1. The Division brings this action under Massachusetts General Laws chapter 169, section 12 to revoke REAL TRANSFER, INC.’S (Real Transfer or the Corporation) foreign transmittal agency licenses FT926441 et al., and to obtain other equitable relief as may be necessary due to Real Transfer’s failure to comply with the provisions of Massachusetts General Laws chapter 169 and the Corporation’s failure to maintain and exercise the financial responsibility, character, reputation, integrity and general fitness to command the confidence of the public and to warrant the belief that its business will be operated lawfully, honestly and fairly, in violation of Massachusetts General Laws, chapter 169, section 10 and the Division’s regulation 209 CMR 44.03. 

    JURISDICTION AND VENUE

  2. The Division is an agency of the Commonwealth of Massachusetts with jurisdiction over matters relating to the licensing and regulation of those persons and entities engaged in the business of a foreign transmittal agency pursuant to Massachusetts General Laws chapter 169, and its implementing regulation 209 CMR 44.00 et seq.
  3. At all relevant times, Real Transfer has been engaged in the business of a foreign transmittal agency in the Commonwealth.

    RESPONDENT

  4. Real Transfer is, and at all relevant times has been, a domestic corporation conducting business in the Commonwealth with its main office located at 576 Boston Post Road East, Marlborough, Massachusetts.  
  5. Real Transfer is currently licensed as a foreign transmittal agency under Massachusetts General Laws chapter 169, section 6, with license number FT926441.  According to records maintained on file with the Division, and as recorded on the Nationwide Multi-State Licensing System and Registry (NMLS), the Commissioner initially issued a foreign transmittal agency license to the Corporation on or about July 20, 2009.  
  6. Real Transfer maintains thirty eight (38) foreign transmittal licenses for locations operated in the Commonwealth from which the Corporation conducts its foreign transmittal business.
  7. Real Transfer is a money service business within the meaning of The Bank Secrecy Act (BSA), 31 U.S.C. 5311-5330, and its implementing regulation at 31 CFR Chapter X.
  8. Claudia G. Silva, is, and at all relevant times has been, the President, Chief Executive Officer and sole owner of Real Transfer.

    REGULATORY BACKGROUND

  9. Pursuant to Massachusetts General Laws chapter 169, section 10, the Division is authorized to inspect the books, accounts, and records of foreign transmittal agencies transacting business in Massachusetts to determine compliance with the provisions of Massachusetts General Laws chapter 169 and any rule, or regulation issued thereunder, and with any law, rule, or regulation applicable to the conduct of the business of a foreign transmittal agency.
  10. On October 25, 2010, pursuant to the authority granted under Massachusetts General Laws chapter 169, section 10 the Division commenced an examination of the books, accounts, and records, maintained by Real Transfer to evaluate the Corporation's compliance with the laws and regulations applicable to the conduct of the foreign transmittal agency in Massachusetts (2010 Examination).  The Division's Report of Examination (2010 Report), alleged non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a foreign transmittal agency in Massachusetts. 
  11. As a result of the findings of the 2010 Examination, the Commissioner and Real Transfer entered into a Stipulation and Consent to the Issuance of Consent Order, Docket No.: 2011-032 (2011 Consent Order) on September 26, 2011, to address the matters raised by the findings of the 2010 Examination.  The provisions of the 2011 Consent Order required Real Transfers to establish and implement revised, written internal policies and quality control 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.
  12. On April 23, 2012, pursuant to the authority granted under Massachusetts General Laws chapter 169, section 10 the Division commenced an examination of the books, accounts, and records, maintained by Real Transfer to evaluate the Corporation's compliance with the laws and regulations applicable to the conduct of the foreign transmittal agency in Massachusetts and to review for the Company’s compliance with the provisions of the 2011 Consent Order (2012 Examination).  As a result of the findings of the 2012 Examination, Real Transfer appeared to be in compliance with the terms of the consent order, and on January 4, 2013, the 2011 Consent Order was terminated. 
  13. On August 19, 2014, pursuant to the authority granted under Massachusetts General Laws chapter 169, section 10, the Division commenced an examination of the books, accounts, and records maintained by Real Transfer to evaluate the Corporation’s compliance with the laws and regulations applicable to the conduct of a foreign transmittal agency in Massachusetts (2014 Examination).
  14. The Division’s Report of Examination (2014 Report) was issued on the effective date of this Order and Notice and alleged significant failures to comply with applicable state and federal laws, rules, and regulations governing the conduct of those engaged in the business of a foreign transmittal agency in Massachusetts.  The violations noted in the 2014 Report include, but are not limited to, numerous violations that were previously noted in the Division’s 2010 Report and which the Corporation was required to correct under the provisions of the Division’s 2011 Consent Order.  The findings and conclusions of the 2014 Report are incorporated herein in their entirety by reference.

    FINDINGS OF FACT

    A. Failure to Demonstrate the Financial Responsibility, Character, Reputation, Integrity, and General Fitness to Maintain a Foreign Transmittal Agency License.  

  15. Massachusetts General Laws chapter 169, section 6, relevant to the licensing of foreign transmittal agencies states in part:

    Said commissioner may reject an application for a license or an application for a renewal of a license if he finds that the financial responsibility, character, reputation, integrity and general fitness of the applicant and the members thereof if such applicant is a partnership or association, and of the officers and directors if the applicant is a corporation are not such as to warrant belief that the business will be operated in accordance with law and in the public interest.

  16. Massachusetts General Laws chapter 169, section 12 states in part:

    The commissioner may suspend or revoke any license issued pursuant to this chapter if he finds that: (a) the licensee has violated any provision of this chapter or any rule or regulation adopted hereunder or any other law applicable to the conduct of such business; or (b) any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the commissioner to refuse to issue such license.

  17. The Division's regulation at 209 CMR 44.04(2)states in part:

    (a) The Commissioner may deny an application to engage in the business of a foreign transmittal agency, if the Commissioner upon review of the application and other relevant information, determines that the Applicant has not satisfied the requirements of M.G.L. c. 169 or 209 CMR 44.03.

    (b) The Commissioner may also deny such an application if the Applicant has:

    1. violated any provision of M.G.L. c. 169 or 209 CMR 44.00;
    2. violated or engaged in a pattern of violations of any state or federal law applicable to the conduct of the business of a foreign transmittal agency and any rule, regulation or administrative order or directive promulgated thereunder;
    3. conducted, or will conduct, its business in an unsafe and unsound manner...
  18. Books and records reviewed by the Division's examiners during the 2014 Examination revealed that Real Transfer failed to implement and execute an adequate compliance program; failed to remit funds within the required 7 day timeframe; failed to establish an adequate Anti-Money Laundering (AML) program for foreign counterparties; failed to establish an effective AML program as required by the Bank Secrecy Act’s (31 CFR Chapter X) implementing regulatory requirements; failed to maintain books and records; failed to provide a disclosure in compliance with the Consumer Financial Protection Bureau’s foreign remittance rule; failed to notify and receive approval of a Massachusetts agent location closing; and failed to accurately file annual reports as more specifically enumerated in this Order and Notice and in the Review and Findings section of the 2014 Report.

    B. Failure to Comply with Anti-Money Laundering (AML) Requirements for Money Service Businesses (MSBs) with Respect to Foreign Agents or Foreign Counterparts 

  19. The Financial Crimes Enforcement Network (FinCEN) Interpretative Release, 2004-1 ("2004-1 Interpretative Release"), states in part:

    With respect to Money Service Businesses that utilize foreign agents or counterparties, a Money Services Business’ anti-money laundering program must include risk-based policies, procedures, and controls designed to identify and minimize money laundering and terrorist financing risks associated with foreign agents and counterparties that facilitate the flow of funds into and out of the United States.… Specifically, a Money Services Business’ anti-money laundering program should include procedures for the following… (1) Conduct of Due Diligence on Foreign Agents and Counterparties… (2) Risk-based Monitoring of Foreign Agents or Counterparties… (3) Corrective Action and Termination...

  20. On July 10, 2012, the Division issued an industry letter “Industry Guidance Relative to Money Transmission to Foreign Countries by Foreign Transmittal Agencies,” alerting foreign transmittal agencies of their responsibility to monitor the activities of third party providers and to exercise due diligence prior to entering into relationships with such entities.

    i. Failure to Develop and Implement Adequate AML Policies and Procedures

  21. During the 2014 Examination, the Division’s examiners discovered that the Corporation’s policies, procedures and controls did not adequately address the risk associated with the transmission of funds out the United States and into Brazil.
  22. While policies and procedures were in place, the Corporation failed to implement and adhere to the policies and procedures, resulting in Real Transfer engaging in apparent unauthorized foreign counterparty relationships for twenty three (23) months out of the twenty-five (25) month review period.

    ii. Failure to use authorized institutions to settle payment orders

  23. The Central Bank of Brazil authorizes and supervises the operations of foreign counterparties conducting business in Brazil. The Division's review of the directory of agents authorized to engage in foreign exchange transactions in Brazil available from the Central Bank of Brazil, indicates that Real Transfer currently maintains agent relationships with unauthorized foreign counterparties in Brazil.
  24. Books and records reviewed by the Division’s examiners during the 2014 Examination revealed that from June 1, 2012 through April 22, 2013, Real Transfer failed to comply with the 2004-1 Interpretive Release guidelines by consistently utilizing Real Transfer Ltd. and Alphalink Financial LTD, entities that are not authorized to legally act as a foreign counterparty in Brazil. 
  25. Books and records reviewed by the Division’s examiners during the 2014 Examination revealed that on April 22, 2013 Real Transfer entered into an agreement to pay all orders through an authorized paying agent: Midas Sociedade Corretora De Cambio S.A (Midas).
  26. Upon further review of Real Transfer’s April 2014-July 2014 bank statements the Division’s examiners discovered multiple wires out of Real Transfer’s main escrow account to Real Transfer Ltd., Alphalink Financial LTD, VSI Payment Services LTD, IME LTD, MSBB Money LTD and Angra Limited, entities that are not authorized to legally act as a foreign counterparty in Brazil.

    iii. Failure to conduct due diligence on foreign counterparties 

  27. During the 2014 Examination, upon discovering that Real Transfer was not wiring funds directly to Midas, the Division’s examiners requested foreign counterparty due diligence documentation, specifically banking details, payment invoices/receipts, and paying agent payment instructions in regard to any and/or one of the paying counterparties utilized during the examination timeframe.
  28. Despite repeated requests by the Division’s examiners, the Corporation was unable to provide any due diligence documentation on foreign counterparties.
  29. Upon further discussion with Real Transfer’s president and compliance officer, it was explained that the Corporation relied on Midas to facilitate the Corporation’s payments and never requested the banking specifics and details of the payment process.
  30. Furthermore, Real Transfer explained that the Corporation did not have signed contracts with any of the third party entities other than Midas and that deposit information and bank coordinates was provided by the paying agents via Skype. 

    C. Failure to remit customer funds within 7 days

  31. Massachusetts General Laws chapter 169, section 8 states, in part:

    All money received for transmission to a foreign country by any licensee shall be forwarded to the person to whom the same is directed within seven days following receipt thereof...

  32. The Division’s regulation 209 CMR 44.10 (5) states:

    Grounds for license revocation under M.G.L. c. 169, § 12 and the issuance of cease and desist orders under M.G.L. c. 169, § 13 shall include, but are not limited to, the following prohibited acts and practices by Licensees: (5) failing to forward all money received for transmission to a foreign country to the person to whom the same is directed within seven days following receipt thereof.

  33. Books and records reviewed by the Division’s examiners during the 2014 Examination revealed that during June 18, 2014 through July 28, 2014, Real Transfer failed to remit customer funds, within the required timeframe, in seventeen (17) instances, with at least three transactions taking 10 days or more for funds to be remitted.
  34. Upon discussions with senior management and compliance personnel, Real Transfer acknowledged the failure to transmit funds within the required timeframe.

    D. Failure to Implement an Effective Anti-Money Laundering Program

  35. The BSA’s implementing regulation at 31 CFR §1022.210 states, in part:

    (a) Each money services business ... shall develop, implement and maintain an effective anti-money laundering program . . . .  that is reasonably designed to prevent the money services business from being used to facilitate money laundering and the financing of terrorist activities.

    (b) The program shall be commensurate with the risks posed by the location and size of, and the nature and volume of the financial services provided by, the money services business.

    (d) At a minimum, the program shall:

        (1) Incorporate policies, procedures, and internal controls reasonably designed to assure compliance with this chapter.

        (2) Designate a person to assure day to day compliance with the program and this chapter

        (3) Provide education and/or training of appropriate personnel concerning their responsibilities under the program, including training in the detection of suspicious transactions to the extent that the money services business is required to report such transactions under this chapter.

        (4) Provide for independent review to monitor and maintain an adequate program

  36. During the 2014 Examination, the Division’s examiners reviewed the Real Transfer Money Transfers Risk Management and Compliance Manual (AML Manual).  While the AML manual contained all required policies and procedures, the Corporation has failed to implement and adhere to the policies and procedures resulting in numerous federal and state compliance violations.
  37. Furthermore, while Real Transfer provides for BSA/AML training for all employees, the training has been ineffective as there are numerous significant violations.   Additionally, while an independent review for Real Transfer was conducted, the independent review did not reveal any of the significant violations discovered during the 2014 Examination therefore questioning the effectiveness of the independent review. 

    i. Failure to file accurate Currency Transaction Reports (CTRs) within required timeframe

  38. The BSA’s implementing regulation at 31 CFR §1010.311, states in part:

    Each financial institution other than a casino shall file a report of each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such financial institution which involves a transaction in currency of more than $10,000.

  39. The BSA’s implementing regulation at 31 CFR §1010.306(a)(1), states in part:

    A report required by §1010.311 or §1021.311, shall be filed by the financial institution within 15 days following the day on which the reportable transaction occurred.

  40. During the 2014 Examination, the Division’s examiners reviewed a sample of CTR filings and discovered that multiple CTRs were filed outside of the required timeframe, with one CTR filed over 500 days after the date of transaction.
  41. Upon reviewing the sample of CTRs, the Division’s examiners identified multiple CTRs that were filed incorrectly as the CTRs only had one subject when in fact the transactions were conducted on behalf of a business, thus requiring two subjects.
  42. Furthermore, during the Division’s examiners review, it was discovered that the Corporation failed to file a CTR for a cash deposit.  This was brought to Real Transfer’s attention by examiners during the 2014 Examination.  On August 18, 2014, Real Transfer filed a CTR for this deposit, 490 days after the date of the transaction.

    ii. Failure to file Suspicious Activity Reports (SARs) 

  43. The BSA’s implementing regulation at 31 CFR 1022.320(a)(1), states in part:

    Every money services business... shall file with the Treasury Department, to the extent and in the manner required by this section, a report of any suspicious transaction relevant to a possible violation of law or regulation. 

  44. Books and records reviewed by the Division’s examiners during the 2014 Examination identified that the Corporation failed to file a SAR on a series of suspicious transactions, involving a customer remitting over $350,000 in cash to Brazil in fifteen separate transactions in less than one year.
  45. Furthermore, the Corporation was monitoring this customer’s account for over six months, had placed blocks on the customer’s profile and requested additional information regarding the transactions.  Although Real Transfer was provided the customer’s tax return, it was not reviewed as the reported net income was less than $500. 
  46. As of the date of this Order and Notice, Real Transfer has not filed a SAR on the abovementioned suspicious activity.

    iii. Failure to perform duties of a Compliance Officer

  47. The BSA’s implementing regulation at 31 CFR §1022.210, states in part:

    A money services business’s anti-money laundering program shall, “(2) Designate a person to assure day to day compliance with the program and this part.  The responsibilities of such person shall include assuring that (i) The money services business properly files reports, and creates and retain records, in accordance with applicable requirements of this part; (ii) The compliance program is updated as necessary to reflect current requirements of this part, and related guidance issued by the Department of the Treasury; and (iii) The money services business provides appropriate training and education in accordance with paragraph (d)(3) of this section.

  48. During the 2014 Examination, the Division’s examiners discovered that the Corporation’s designated Compliance Officer, failed to effectively perform his duties by failing to file CTRs and SARs, failing to properly retain transmittal records, failing to develop an effective AML program, and failing to properly conduct, document and maintain due diligence on all foreign counterparties.

    E. Failure to Maintain Books, Records and Accounts

  49. Massachusetts General Laws, Chapter 169, section 10 states in part:

    A licensee shall keep such books, accounts and records as will enable the commissioner to determine whether such licensee is in compliance with the provisions of this chapter and rules and regulations made pursuant thereto and any other law, rule and regulation applicable to the conduct of such business…”

  50. The Division’s regulation 209 CMR 44.05(1) states:

    Each Licensee shall keep and use within the Commonwealth its books, records and accounts in a manner which will allow the Commissioner to determine whether the Licensee is complying with the provisions of M.G.L. c. 169 and applicable state and federal laws and regulations.

  51. During the 2014 Examination, despite the Division’s examiners numerous requests, the Corporation failed to provide proof of payment/invoices for transactions and “core” due diligence documents for its foreign counterparties for the period under review.

    F. Failure to Maintain Compliant Transactional Receipts. 

  52. The CFPB’s regulation 12 CFR 1005.31(b)(1), states in part:

    A remittance transfer provider must disclose to a sender, as applicable:

        ii. Any fees imposed and any taxes collected on the remittance transfer by the provider, in the currency in which the remittance transfer is funded, using the terms “Transfer Fees” for fees and “Transfer Taxes” for taxes, or substantially similar terms;

        vii. The amount that will be received by the designated recipient, in the currency in which the funds will be received, using the term “Total to Recipient” or a substantially similar term...

  53. The CFPB’s regulation 12 CFR 1005.31(b)(2) states in part:

    A remittance transfer provider must disclose to a sender, as applicable:

        i. The disclosures described in paragraphs (b)(1)(i) through (viii) of this section;

        ii. The date in the foreign country on which funds will be available to the designated recipient, using the term “Date Available” or a substantially similar term. A provider may provide a statement that funds may be available to the designated recipient earlier than the date disclosed, using the term “may be available sooner” or a substantially similar term;

  54. The CFPB’s regulation 12 CFR 1005.31(e)(i) states:

    Except as provided in § 1005.36(a), a pre-payment disclosure required by paragraph (b)(1) of this section or a combined disclosure required by paragraph (b)(3) of this section must be provided to the sender when the sender requests the remittance transfer, but prior to payment for the transfer.

  55. During the 2014 Examination, the Division’s examiners reviewed customer transaction receipts for compliance with the CFPB’s foreign remittance rule and state-specific disclosure requirements.  The Division’s examiners determined that the Corporation provides a transaction receipt in combination with the required disclosures (Combined Disclosure) to all consumers conducting a foreign money remittance.
  56. Upon review of the Corporation’s Combined Disclosure, the Division’s examiners noted that the receipt listed “service” instead of “transfer fees,” “transfer taxes,” or substantially similar terms.
  57. Upon review of the Corporation’s Combined Disclosure, the Division’s examiners noted that the receipt listed “Brazil Reais” instead of “total to recipient,” or a substantially similar term.
  58. Upon review of the Corporation’s Combined Disclosure, the Division’s examiners noted that the receipt fails to properly list all of the information in the prepayment disclosure as required pursuant to the CFPB’s regulation. 
  59. Upon review of the Corporation’s Combined Disclosure, the Division’s examiners noted that the Corporation’s receipts failed to provide the date in which the funds will be available or an estimate thereof.
  60. Upon review of the Corporation’s Combined Disclosure, the Division’s examiners noted that Real Transfer has failed to provide consumers with the Combined Disclosure prior to receiving payment for the transfers.  This was verified by the Corporation’s compliance officer as he stated that the Combined Disclosure was only provided to the consumer upon completion of the transaction.

    G. Failure to notify and obtain prior approval from the Division of an agent closing

  61. The Division’s regulation, 209 CMR 44.09(2) states in part:

    Relocations and Closings shall obtain the Commissioner’s written prior approval of any change in or closing of a Massachusetts location.  Written application to the Commissioner shall be made prior to any such change or closing and shall contain such other information as the Commissioner may require.

  62. On or about August 26, 2014, the Division’s examiners conducted a visitation of Real Transfer’s agent location at 150 Main Street, Peabody, Massachusetts.
  63. During the agent visitation, the Division’s examiners spoke to the agent location manager who informed the Division’s examiners that Real Transfer cancelled/terminated the agent relationship at the location.
  64. On or about August 27, 2014, the Division’s examiners confirmed with the Division’s licensing unit that the Division had not received prior written notification of the agent closing/termination.
  65. On or about October 29, 2014, Real Transfer informed the Division’s examiners that a letter of notification was sent to the Division regarding the agent closing/termination.

    H. Failure to Submit Accurate Annual Reports

  66. The Division’s regulation, 209 CMR 44.06 states, in part:

    A Licensee shall annually on or before January 31, file an annual report with the Commissioner.  The Licensee shall submit the following information: 
    (2) aggregate and other information on the amount of funds transmitted abroad and the profit or loss from such activity.

  67. During the 2014 Examination, the Division’s examiners reviewed Real Transfer’s 2012 Annual Report and determined that it contained errors as the “number of transactions and total amount of transactions remitted to foreign countries by the Licensee from Massachusetts consumers during the 2012 calendar year” was reported as $6,966,272 and the “amounts sent to each foreign country during 2012” totaled $6,667,515.   As these two sections are different ways of reporting the same number, they should be equal.
  68. Upon further review to determine which number reported in the 2012 Annual Report was accurate, the Division’s examiner added up the sum of all of the individual location amounts reported through Real Transfer’s Schedule B responses, which totaled $6,631,145. 
  69. As all three numbers should be the same, the Division’s examiner was unable to determine which number was accurate.

    I. Other Violations

  70. In addition to the violations specifically set forth in this Order and Notice, the 2014 Report to be provided in conjunction with the issuance of this Order and Notice describe other violations observed during the 2014 Examination. 

    VIOLATIONS

    NOW THEREFORE, the Division sets forth the following charges against Real Transfer:

  71. The Division hereby re-alleges, and incorporates by reference Paragraphs 1 through 70 of this Order and Notice as though fully set forth.
  72. CHARGE ONE: Real Transfer has failed to demonstrate and maintain the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that the foreign transmittal agency business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 169, section 6 and the Division's regulations 209 CMR 44.03 and 209 CMR 44.04. 
  73. CHARGE TWO: By failing to develop adequate Anti-Money Laundering Policies and Procedures with respect to foreign agents or foreign counterparties that are commensurate to the risks associated with conducting business with a foreign entity, Real Transfer is in violation of FinCEN Interpretive Release Number 2004-1
  74. CHARGE THREE: By failing to use authorized foreign agent/counterparties to settle payment orders, Real Transfer is in violation of FinCEN Interpretive Release Number 2004-1.
  75. CHARGE FOUR:  By failing to conduct due diligence on foreign agents/counterparties, Real Transfer is in violation of FinCEN Interpretive Release Number 2004-1. 
  76. CHARGE FIVE: By failing to remit Massachusetts customer funds within the required seven (7) day timeframe,  Real Transfer is in violation of Massachusetts General Laws chapter 169, section 8 and the Division’s regulation 209 CMR 44.10(5).
  77. CHARGE SIX: By failing to implement an effective Anti-Money Laundering program, Real Transfer is in violation of the Bank Secrecy Act’s implementing regulation 31 CFR §1022.210.  
  78. CHARGE SEVEN: By failing to file Currency Transaction Reports for a transaction in currency of more than $10,000, Real Transfer is in violation of the Bank Secrecy Act’s implementing regulation 31 CFR §1010.311.
  79. CHARGE EIGHT: By failing to file Currency Transaction Reports within the required 15 day timeframe, Real Transfer is in violation of the Bank Secrecy Act’s implementing regulation 31 CFR §1010.306(a)(1).
  80. CHARGE NINE: By failing to file a Suspicious Activity Report on any suspicious transaction, Real Transfer is in violation of the Bank Secrecy Act’s implementing regulation 31 CFR §1022.320(a)(1).
  81. CHARGE TEN:  Real Transfer’s designated compliance officer has failed to effectively perform the duties of a compliance officer, in violation of the Bank Secrecy Act’s implementing regulation 31 CFR §1022.210. 
  82. CHARGE ELEVEN:  By failing to maintain proof of payment/invoices for transactions and core due diligence documents, Real Transfer violated Massachusetts General Laws, chapter 169, section 10 and Division’s regulation 209 CMR 44.05(1). 
  83. CHARGE TWELVE: By failing to maintain compliant transactional receipts, Real Transfer is in violation of the Consumer Financial Protection Bureau’s regulation 12 CFR §1005.31.
  84. CHARGE THIRTEEN: By failing to notify and obtain prior approval from the Commissioner of the closure of a licensed agent location, Real Transfer is in violation of the Division’s regulation 209 CMR 44.09(2).  
  85. CHARGE FOURTEEN: By failing to submit accurate Annual Reports to Commissioner, Real Transfer is in violation of the Division’s regulation 209 CMR 44.06(2).  
  86. CHARGE FIFTEEN: Had the foregoing existed at the time of Real Transfer’s foreign transmittal agency license application, the Commissioner would have been warranted in refusing to issue such license.  Further, the facts and conditions set forth in Paragraphs 1 through 70 present sufficient grounds for the revocation of Real Transfer’s foreign transmittal agency license pursuant to Massachusetts General Laws chapter 169, section 12.

    PRAYER FOR RELIEF

  87. WHEREFORE, the Division, by and through the Commissioner, prays for a final decision as follows: 
    1. For a final Agency decision awarding temporary and preliminary injunctive relief, and any other ancillary relief, as may be necessary to protect the public interest during the pendency of this matter.
    2. for a final Agency decision in favor of the Division and against Real Transfer for each Charge set forth in this Order and Notice.
    3. For a final Agency decision revoking all of Real Transfer’s foreign transmittal agency licenses, to conduct business as a foreign transmittal agency in Massachusetts.
    4. For costs and fees of the Division’s investigation of this matter; and
    5. For such additional equitable relief as the Presiding Officer may deem just and proper.

    NOTICE OF RIGHT TO A HEARING

  88. Real Transfer or their authorized representative are required to file an Answer or otherwise respond to the Charges contained in this Order and Notice within twenty-one (21) days of its effective date, pursuant to the Standard Adjudicatory Rules of Practices and Procedures, 801 CMR. 1.01 (6)(d).  Failure to do so will result in a default judgment against you.   The Answer, and any subsequent filings that are made in conjunction with this proceeding, shall be directed to the Administrative Hearings Officer, Division of Banks, with a copy to Prosecuting Counsel. 

    All papers filed with the Division shall be addressed to the attention of:

    Administrative Hearings Officer
    Division of Banks
    1000 Washington Street, 10th Floor
    Boston, Massachusetts 02118

    Prosecuting Counsel for this matter is:
    Nicole Palumbo
    Division of Banks
    1000 Washington Street, 10th Floor
    Boston, Massachusetts 02118

  89. You are further advised that Real Transfer has the right to be represented by counsel or another representative, to call and examine witnesses, to introduce exhibits, to cross-examine witnesses who testify against Real Transfer and to present oral arguments.  The hearing will be held at a date and time to be determined and will be conducted according to Massachusetts General Laws, chapter 30A, sections 10 and 11, and the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.01 and 1.03. 
  90. Real Transfer or their representative may examine any and all Division records relative to this case prior to the date of the hearing, during normal business hours, at the office of the Prosecuting Counsel.  If you elect to undertake such an examination, please contact the Prosecuting Counsel, Nicole Palumbo at 617-956-1509 in advance to schedule a time that is mutually convenient.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 4th day of December, 2014

Cynthis A. Begin
Chief Risk Officer
Commonwealth of Massachusetts

The Order has been vacated pursuant to a Consent Order, effective February 19, 2015

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