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Does the $1,000 per person per day check cashing threshold in FinCEN’s definition of “money services business” apply to the customer or the store cashing the check? In other words, does a single customer of the check cashing store have to cash more than $1,000 in checks in a single day, or does the check cashing store need to cash more than $1,000 in checks from multiple customers in order for the store to meet FinCEN’s threshold for a check casher?

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The $1,000 dollar threshold applies to the check cashing store’s customer. FinCEN’s rule requires a business that provides check cashing services “in an amount greater than $1,000 for any person on any day in one or more transactions” to register as a money services business. In other words, if a store cashes checks for multiple customers, but never for more than $1,000 per customer in a single day, the store would not meet FinCEN’s check cashing threshold.

For resources related to our guidance, please see:

  • FinCEN Regulations, 31 CFR 1010.100(ff)(2) (A money services business is a “check casher,” which is defined to include “[a] person that accepts checks . . . in return for currency . . . in an amount greater than $1,000 for any person on any day in one or more transactions.”)
  • FinCEN, Money Services Business Registration Fact Sheet (“To meet the definition of an MSB, a person must conduct more than $1,000 in business with one person in one or more transactions (in one category of activity listed above) on any one day.”)
  • FinCEN, Guidance on Definition of Check Casher and BSA Requirements (January 1, 2003) (“Is a business that cashes a check with a face value of over $1,000 by providing the customer with $999 in currency and the balance in money orders or a wire transfer a ‘check casher’ for Bank Secrecy Act (BSA) purposes? . . . . [A] business that implements a policy that restricts the dollar amount of checks cashed per person per day to under $1,000 would not fit the definition of ‘check casher’ under BSA regulations. . . . Therefore, an entity that provides a customer with money orders, or a combination of currency and money orders, in exchange for a check, in an amount greater than $1,000 on any day in one or more transactions, is a “check casher” and must comply with BSA regulations applicable to check cashers including registration, recordkeeping, reporting, and anti-money laundering compliance program requirements.”)
  • FinCEN, Ruling FIN-2008-R003 (May 9, 2008) (“In consequence, to the extent that the Company exchanges funds denominated in the currency of one country for funds denominated in the currency of another country in an amount greater than $1,000, for any of its affiliates or unaffiliated business customers on any day in one or more transactions, the Company would be a currency dealer or exchanger according to our regulations.”)