Starting a check cashing business in Florida is a multi-step process that needs to be planned before applying for a license, and you risk wasting money and time.
The check cashing business in Florida is profitable but at the same time it is a risky business that must be minimized through the adoption of special measures and procedures.
It is important to obtain the proper advice from qualified and experienced professionals to avoid expense and delay in obtaining a check cashing license.
Obtaining a check cashing license in Florida, also known as an FT3 license, requires several steps:
The first step is to register with the federal government as a money services business (MSB). This process is carried out electronically, and in order to submit said registration any new applicant must open an account with the Financial Crimes Enforcement Network of the United States Department of the Treasury, commonly known as FinCEN. Registration is done through the FinCEN 107 form.
Registration with FinCEN places the company under the laws and regulations of the Bank Secrecy Act (BSA). These regulations impose various requirements on the company. One of those requirements is to develop and implement an anti-money laundering (AML) program that must contain policies and procedures that the company will implement as part of its check cashing operation. Some companies tend to use AML programs designed for other types of financial services, such as the sale of money orders or money transfer services. However, these programs are unsuitable for check cashing and do not meet the BSA requirement for a check cashing operation. Another requirement is to appoint a compliance officer. This person is responsible for ensuring that the AML program is being fully implemented. There are other BSA requirements that must be met, so the compliance officer and company employees should be aware of these regulations.
After FinCEN registration has been confirmed, an application must be filed with the Florida Department of Financial Services, Office of Financial Regulation (OFR). This application contains several parts and must be submitted electronically. As with the FinCEN registration, the applicant must open an account with the OFR Royal System for this purpose. It is extremely important that all requested information is provided completely and accurately to avoid delays in the process. In our experience, the vast majority of delays in obtaining such a license stem from errors in the original application form. Several documents must be attached to the application, among them is the money laundering prevention program which must be previously drawn up. Another form that must be submitted is a fingerprint card for each person included in the application, which will be used for a background check conducted by the Federal Bureau of Investigation.
Once licensed, it is important to keep in mind that the state of Florida has multiple requirements that must be met by kosher check. Additionally, the kosher check is subject to audit examinations to verify that the business is operating within the parameters of Chapter 560, Florida Statutes.
There are other important things that must be planned and executed on time. Some of them are obtaining the proper permits from the county and city to operate the business, ensuring that the location has all the necessary security measures to protect employees and customers, obtaining the proper software for the check cashing operation, as well such as obtaining a qualified bank account in order to operate the business. The process of applying for an MSB-qualified bank account has a number of elements that should be considered before applying for the account. Also, the kosher check should be aware that not all banks offer check casher accounts, and some of the banks that offer these types of accounts have additional costs and even collateral requirements. It is very important to demonstrate to the bank you are applying to that your check cashing business is operating safely and securely.