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cashing out Banks are dropping convenience store clients BY KEN MARTEN The war on terror has hit home, as close as the Chaldean-owned corner convenience store. On April 26, the U.S. Department of Treasury issued new Patriot Act regulations under the Bank Security Act to “money services businesses” and the banks that maintain their accounts. Its aim is to prevent money laundering for terrorists but one consequence is that many major banks are dropping convenience stores as clients. “Money services businesses,” or MSBs, are those that cash checks, issue and redeem money orders or travelers checks, offer money transmissions or currency exchange. Many Chaldean-owned stores throughout metro Detroit provide at least some of these services. Other businesses that are considered MSBs are travel agencies, car dealerships, casinos, racetracks and the U.S. Postal Service. But rather than comply with the new regulations, which require banks to ensure their MSB clients understand the Bank Secrecy Act and report cash transactions, many major banks are instead opting to close their MSB accounts. In most cases, store owners receive a letter notifying them that their account will be closed in a month or so. THANKS BUT NO THANKS “I don’t know what’s going on,” said the Chaldean owner of a convenience store in Detroit, who asked that his name not be used. “I got the letter in early June. Then I talked to a guy at the bank, and he said they didn’t want to deal with it anymore. How are we to do business? “If you’ve done business with a bank for 20 years,” the owner 36 CHALDEAN NEWS AUGUST 2005 added, “and they suddenly close your account, what does that say?” His sentiments echoed those of other store owners contacted by the Chaldean News, all of whom received similar notifications but declined to make public comments. Among the new requirements, MSBs must register with the federal Financial Crimes Enforcement Network (FinCEN). Store owners must file a Suspicious Activity Report (SAR) whenever they suspect illegal activity involving a customer who makes cash-in or cash-out transactions of at least $2,000 on the same business day. They must also file a Currency Transaction Report (CTR), regardless of suspicion, involving transactions more than $10,000. Failure to comply could result in fines in the thousands of dollars and the loss of banking services. Mike George, owner of Farmington Hills-based George Enterprises, a food manufacturing and distribution company, supplies several store owners who have been forced to find a new bank. “Basically, what they’ve done is said, ‘we don’t want your accounts anymore,’” George said. “Not that they’re doing anything illegal, but the banks are just lazy. It’s a business decision, not prejudice or anything. Still, businesses are being neglected.” Department of Treasury statements issued in April acknowledge the importance of MSBs in places where banking in a traditional financial institution is often unavailable, such as rural areas and urban pockets in which the majority of the population doesn’t speak English. But however cumbersome the new regulations may be, the nation’s security, say the feds, can’t be compromised. FILLING A VOID “The Treasury (Department) will randomly go in and audit their stores,” said George Mochmar, president and CEO of Bank of Michigan in Farmington Hills. “From a bank standpoint, the Bank Secrecy Act is really the hottest button out there. Banks run a tremendous risk because it’s so burdensome to monitor.” Rather than drop MSB accounts, Bank of Michigan is accepting new ones. An employee acts as its Bank Secrecy Act officer but juggles the responsibility with other duties. Thus, the bank is in the process of hiring a full-time officer. “If we end up with a lot of these types of accounts, we need someone internally who has this down cold,” Mochmar said. “If the examiner even finds a technical error, they can fine the bank. But we see a real opportunity because they’re a part of the community who needs and deserves to be served.” For more information on Bank Secrecy Act compliance, call the Detroit Computing Center hotline at (800)800-2877, or visit www.msb.gov. $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ FILING A CTR $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ Here is what’s required for money services businesses $$$$$$$$$$$$$$$$$$$$ each time they cash a check $$$$$$$$$$$$$$$$$$$$ or write a money order: $$$$$$$$$$$$$$$$$$$$ • Verify and record $$$$$$$$$$$$$$$$$$$$ customer identification $$$$$$$$$$$$$$$$$$$$ • Record customer transaction information $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ • Make a copy of the completed CTR and keep it $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ for five years from the $$$$$$$$$$$$$$$$$$$$ date of filing $$$$$$$$$$$$$$$$$$$$ • Send original to IRS Detroit Computing Center, $$$$$$$$$$$$$$$$$$$$ Attn: CTR, P.O. Box $$$$$$$$$$$$$$$$$$$$ 33604, Detroit, MI $$$$$$$$$$$$$$$$$$$$ 48232-5604 $$$$$$$$$$$$$$$$$$$$ • CTRs must be filed within $$$$$$$$$$$$$$$$$$$$ 15 days of the transaction $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ ALPHABET $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ SOUP $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ Abbreviations are common $$$$$$$$$$$$$$$$$$$$ in government jargon, and $$$$$$$$$$$$$$$$$$$$ there are many associated $$$$$$$$$$$$$$$$$$$$ with the BSA (Bank Secrecy Act): $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ AML: $$$$$$$$$$$$$$$$$$$$ Anti-Money $$$$$$$$$$$$$$$$$$$$ Laundering $$$$$$$$$$$$$$$$$$$$ CTR: $$$$$$$$$$$$$$$$$$$$ Currency Transaction Report $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ FinCEN: Financial Crimes Enforcement $$$$$$$$$$$$$$$$$$$$ Network $$$$$$$$$$$$$$$$$$$$ MSB: $$$$$$$$$$$$$$$$$$$$ Money Services $$$$$$$$$$$$$$$$$$$$ Business $$$$$$$$$$$$$$$$$$$$ SAR: $$$$$$$$$$$$$$$$$$$$ Suspicious Activity $$$$$$$$$$$$$$$$$$$$ Report $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$
Evans & Luptak, P.L.C. Attorneys at Law Specializing in Real Estate, Tax Planning and Business Law. Licensed in Florida and Michigan. Our attorneys also provide expertise in the following areas: ❑ Estate Planning ❑ Real Estate ❑ Taxation ❑ Probate ❑ Corporate & Business Law ❑ Securities ❑ Civil & Commercial Litigation ❑ Appeals (248) 406-5100 aayar@evansluptak.com www.evansluptak.com ANDREW A. AYAR We have offices in Michigan and Florida Bloomfield Hills, MI Boca Raton, FL Grosse Pointe Farms, MI $ 10 OFF any product or service Offer valid in West Bloomfield Salon Only. Excludes monthly membership members. WITH COUPON. EXPIRES AUGUST 31 2005 CN SUMMER OF A LIFETIME EVERY $PINNER IS A WINNER! JULY 11 THROUGH AUGUST 24 Present this ad and receive ONE FREE LUNCH OR DINNER ENTRÉE With the purchase of a second entrée of equal or lesser value Up to a maximum of $27.00 Dearborn A special invitation to all of our friends in the Chaldean Community Grand River & The Lodge 1-877-777-0711 • motorcitycasino.com MotorCity Casino and MotorCity Casino logo are trademarks of Detroit Entertainment, L.L.C. © 2005 Detroit Entertainment, L.L.C. All rights reserved. Banquet Facility Available up to 250 people 313-359-3300 21400 Michigan Avenue Valid only at Andiamo Dearborn. Not valid on holidays or in conjunction with any other promotional discounts. Expires 9/30/05 AUGUST 2005 CHALDEAN NEWS 37
Page 1: $2 THE CHALDEANNEWS WWW.CHALDEANNEW
Page 4 and 5: GEORGE & KESTO COMPANIES R E A L E
Page 6 and 7: KELLER WILLIAMS REALTY Looking for
Page 8 and 9: 8 CHALDEAN NEWS AUGUST 2005
Page 10 and 11: from the EDITOR Taking a Break The
Page 12 and 13: NOTEworthy JULY MARRED BY VIOLENCE
Page 14 and 15: NOTEworthy FESTIVE NIGHT Chaldeans
Page 16 and 17: CHAI time CHALDEANS CONNECTING COMM
Page 18 and 19: IRAQ today PHOTO BY AP/KHALID MOHAM
Page 20 and 21: CALC corner NOTE from the PRESIDENT
Page 22 and 23: HALHOLE! [Births] Alexandra Hanna A
Page 24 and 25: [Engagements] Randal and Stephanie
Page 26 and 27: RELIGION PLACES OF PRAYER CHALDEAN
Page 28 and 29: ECONOMICS and ENTERPRISE Chaldean-o
Page 30 and 31: Red Oaks Water Park, Madison Height
Page 32 and 33: Clockwise from left: Mackinac Bridg
Page 34 and 35: Lake Superior, Tahquamenon Falls, t
Page 38 and 39: forgotten women Widows struggle to
Page 40 and 41: ‘krystle’-clear career Softball
Page 42 and 43: sports taking it to the next level
Page 44 and 45: the DOCTOR is in Watch that sun as
Page 46 and 47: event Mike George Wally Habbo (left
Page 48 and 49: kids’ CORNER LET’S GET READING
Page 50 and 51: classified LISTINGS HELP WANTED HOU

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