News

United Americas cashes out check cashers

April 7, 2005

Atlanta Business Chronicle: Atlanta-based United Americas Bank, which targets the Hispanic population, is caught up in a federal crackdown on money service businesses, which allow immigrants to send money back to their home countries.

On Feb. 18, the U.S. Office of the Comptroller of Currency filed a consent order directing United Americas to implement stricter procedures for complying with the Bank Secrecy Act.

As part of the action, United Americas was ordered to develop and implement procedures to monitor acts that pose "greater than normal" risks for compliance with the Bank Secrecy Act, ensure records are maintained on fund transfers and identify and report large-volume cash deposits, among other requirements.

Jorge Forment, president of United Americas, said the consent order came amidst a government crackdown on money service businesses. As part of the effort, he said, regulators are targeting banks that have money service businesses as clients. As a result of the increased regulatory pressure, Forment said he recently closed the accounts of about 25 such clients.

The consent order served upon United Americas was only one of 34 enforcement actions announced in mid-March by OCC.