230 R.I. Code R. 230-RICR-40-20-2.6

Current through December 26, 2024

Section 230-RICR-40-20-2.6 - Check Casher Requirements

A. Security Measures. Every licensee shall provide for the safety and security of its customers and its employees by complying with the following security measures:

1. Install an alarm system that when activated automatically signals either the local police department or a licensed security company, if licensing is required by law, ordinance, rule or regulation. The alarm system must include panic buttons at strategically placed inconspicuous locations within the licensed location.

2. Install a camera surveillance system to monitor the activities of employees and customers at the licensed location.

3. Install bullet proof glass and partitions that meet or exceed Underwriters Laboratories Level II ballistics standards at all check cashing stations, transaction windows, counters and similar areas where the exchange of funds, checks, money orders and other transactions take place. Applicants and licensees are required to provide sufficient documentation such as contractor certification or building inspector certification that such structures and areas meet these requirements. Underwriters Laboratories Level II ballistics standards partitions must extend from floor to ceiling and be constructed in a manner to not allow an individual to breach such partition to gain access to the check cashing area provided, however, that a reasonably lower partition is allowable if the entire transaction area, including the top portion, is enclosed by such materials.

4. Adopt and implement a security program that provides for a schedule of inspecting, testing and servicing of the security devices installed at the licensed location. Each licensee shall maintain records of each inspection, testing and servicing of the security devices.

B. Liquid Assets. Every licensee shall maintain liquid assets of at least ten thousand dollars ($10,000) at all times at the licensed location.

C. Cash Sheets. Every licensee shall prepare daily cash sheets for each day's business reflecting all transactions for that day. The cash sheets must be balanced and settled prior to the opening of the next day's business. Cash sheets must record the beginning and ending numbers of money orders issued each day. A closing cash count must be performed which includes all cash and cash items.

D. Log Sheet and Inventory Items. Every licensee shall maintain a written log indicating each transaction, including the amount, for the following:

1. money orders, travelers checks or checks sold or issued;

2. food stamps issued; and

3. utility payments accepted.

E. Dishonored Checks. Every licensee shall maintain a register of all checks, money orders, or drafts that have been altered, forged, stolen, obtained through fraudulent or illegal means, negotiated without proper legal authority or represent the proceeds of illegal activity, after having been advised of such by the payor financial institution. The register shall contain, to the extent available, the following, if applicable:

1. date the licensee was advised by the payor institution;

2. the amount of the item;

3. the payee;

4. the name of the payor institution;

5. the item number and date; and

6. the reason for dishonor.

7. The licensee shall notify the police department in the city or town in which the office of the licensee where the check was cashed is located of the dishonored check, pursuant to statute.

F. Currency and Foreign Transactions Reporting. Every licensee must maintain and comply with 31 C.F.R. Part 103, as amended, entitled "Financial Recordkeeping and Reporting of Currency and Foreign Transactions." Any records maintained or reports filed pursuant to these federal regulations shall be maintained at the licensed location for at least five (5) years.

G. Inventory and reconciliation. Inventory and reconciliation records relating to money order, travelers' checks, other checks, and food stamps issued or sold.

H. Altered Checks. A register of all checks, money orders, or drafts, that have been altered, forged, stolen, obtained through fraudulent or illegal means, negotiated without proper legal authority, or which represent the proceeds of illegal activity, after having been advised as such by the payor financial institution.

I. Money Laundering. A copy of the licensee's written policy and affirmative program to insure compliance with state and federal money laundering statutes

J. Charges. A conspicuously posted notice stating the charges for cashing checks.

K. Financial Statements. A financial statement, prepared at a minimum on a quarterly basis, which evidences compliance to applicable statutory net worth requirements.

230 R.I. Code R. 230-RICR-40-20-2.6