OFFICE OF THE COMMISSIONER OF FINANCIAL REGULATION

Check Cashing Compliance Unit

MANAGER’S QUESTIONNAIRE

The Office of the Commissioner of Financial Regulation (the “Agency”) has scheduled an investigatory examination of your organization pursuant to Md. Code Ann., Fin. Inst. (“FI”), Title 12, Subtitle 1, (the “Maryland Check Cashing Law” or “MCCL”). This Manager’s Questionnaire (the “Questionnaire”) consists of requests for pre-examination information and documents and must be completed in its entirety. Additional information and documentation may be requested by the examination team as the examination proceeds. Under the MCCL, a licensee is required to provide the requested information and documentation to the Commissioner of Financial Regulation (the “Commissioner”) and is otherwise obligated to be responsive in a timely manner to the examination team. Should a licensee fail to provide the requested information and documentation or otherwise obstruct the examination, the Commissioner is authorized to compel production as well as seek other administrative relief which could result in the imposition of fines, license suspension and/or license revocation. The Questionnaire is divided into (2) sections: General Information and Check Cashing Services. NOTE: You must respond to all questions applicable to your business;

• If a question or request is not applicable to your business, insert “N/A”. • If there is inadequate space to fully answer any specific question, please attach additional sheets or

material and reference the section to which it refers. • All references to “payment instrument” have the meaning as defined in FI §12-101(f). • All references to “provide check cashing services” have the meaning as defined in FI §12-101(g).

Please return the completed Questionnaire within 14 days of receipt of this Questionnaire. The Questionnaire with supporting documentation may be submitted in hard copy (paper) or an electronic equivalent (*pdf files) by either:

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• electronic mail at non-depository.examination@maryland.gov; or • by mail at:

Office of the Commissioner of Financial Regulation

500 North Calvert Street, Suite 402 Baltimore, Maryland 21202

Attn: Check Cashing Compliance Unit All inquiries should be submitted by electronic mail to non-depository.examination@maryland.gov

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SECTION #1: GENERAL INFORMATION

1) The Licensee’s name as it appears on License:

a. List any and all fictitious names (D/B/A’s):

b. Provide D/B/A registration documentation.

2) MCCL (Maryland) License Number(s):

3) Federal Tax Identification number:

4) List all states in which Licensee is licensed and/or engaging in the business of providing check cashing services:

5) Provide the principal office address:

Street:

City and State:

Zip Code:

Email Address:

Corporate Website Address:

6) Provide the mailing address if different than above:

7) Does the Licensee utilize a P.O. Box? Yes No

If yes, describe purpose:

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8) Provide the following information for the contact person for this examination:

Name and Title:

Address:

Telephone Number:

Facsimile Number:

Email Address:

9) Provide a list of all locations in the State of Maryland where you provide check cashing services. Include the address, telephone number, facsimile number, and email address for each location.

RECORDS INFORMATION 10) List the location of the following types of records:

Chronological Register: Bank statements and canceled checks:

11) File storage format (check all that apply):

Primary Secondary

☐ ☐ Paper

☐ ☐ Electronic- private server, self-contained

☐ ☐ Electronic- file hosting service or Cloud server (3rd party provider)

☐ ☐ Electronic- portable storage devices (CD, DVD or portable hard drive)

NOTE: If files are retained in a photocopy, electronic, or other format, provide a copy of the approval letter from the Agency.

12) Provide the location of any backup files:

OPERATIONS INFORMATION 13) State of organization:

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14) How is the Licensee organized? (check the box that applies)

☐Sole Proprietorship ☐General Partnership ☐Limited Partnership ☐Limited Liability Company ☐Corporation ☐Business Trust ☐Other _________________________

15) CORPORATE ENTITY ORGANIZATION CHART: Provide an entity organization chart detailing all

affiliated relationships including parent company, subsidiaries and/or affiliates of the parent company and subsidiaries and/or affiliates of the Licensee, and ownership thereof, and agents engaged in any aspect of the check cashing services process. For each entity on the organization chart, please indicate the manner of structure (sole proprietorship, partnership, limited partnership, Limited Liability Company, corporation, business trust, etc.), as well as whether the entity is licensed by the Commissioner or any other financial regulator. Provide the list of directors and board members for each corporate entity.

16) DEPARTMENT ORGANIZATION CHART:

a. Provide a department organization chart including names, titles and contact numbers. b. Provide a brief description of operational responsibilities for each department.

NOTE: If the Licensee is a small corporation or sole proprietorship please complete “Schedule A” attached to this Questionnaire in lieu of providing the organizational charts.

17) Provide a complete copy of all Licensee’s policies and procedures.

18) Provide a copy of the most recent quality control reports prepared either internally and/or externally.

19) Provide a copy of the Licensee’s disaster recovery plan.

FINANCIAL INFORMATION 20) How frequently are unaudited financial statements prepared?

21) Provide a copy of the most recent:

• Unaudited financial statement, e.g. Quick Books, (since last NMLS submission), including balance sheet, income statement and expense statement.

• A listing of all assets that the Licensee owns but which are not shown on the books. • A listing of all bank accounts utilized by the Licensee since the Licensee’s last examination or during the last

3 years (whichever is sooner), including: 1. Name and address of the depository institution(s); 2. Account number(s); 3. Purpose of each account; and 4. Status of each account (open, closed, or past due).

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22) Is an internal auditor employed by Licensee? Yes No

If yes, describe the reporting procedures, including to whom the internal auditor reports and audit program used:

If no, please list the name of the auditing firm and partner:

23) Is the Licensee currently past due on any obligation including open or closed-end credit, accounts payable,

income tax or other tax? Yes No

If yes, provide a detailed list of the creditor(s), the amount, and the reason for the past due status:

24) Is the Licensee, on its own behalf, or any officer, principal, partner (general or limited), owner, director or

employee, on the Licensee’s behalf, contingently liable as an endorser, guarantor, or otherwise? Yes No

If yes, provide details:

CIVIL, CRIMINAL, and ADMINSTRATIVE ACTIONS and COMPLIANCE ISSUES 25) Has the Licensee or any officer, principal, partner, owner, member, director, or employee been denied a license,

registration, or approval by any governmental agency to within the past five (5) years? Yes No

If yes, provide details and copies of all applicable documentation:

26) Has the Licensee or any officer, principal, partner, member, owner, director, or employee had a license/

registration, to engage in any regulated activity, suspended or revoked or otherwise restricted by any agency within the past five (5) years? Yes No

If yes, provide details and copies of all applicable documentation:

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27) a) Has the Licensee, or any officer, principal, partner, owner, member, director, employee, or agent of the Licensee, or an affiliate of the Licensee, or any officer, principal, partner, member, owner, director, employee, or agent of the affiliate of the Licensee been the subject of any administrative action (e.g.: Consent Agreements, Fines or Civil Penalties) by any governmental agency within the past five (5) years? Yes No

b) Has any such administrative action resulted in the payment of fines or penalties? Yes No c) Has any such administrative action required consumer refunds? Yes No

NOTE: If you replied yes to any of the above questions, provide a copy of all state or federal administrative actions (i.e., Final Orders, Cease and Desist Orders, Charging Documents, Written Agreements, Memorandum of Understandings, other) which were the basis for answering in the affirmative.

28) a) Has the Licensee, or any officer, principal, partner, member, owner, director, employee, or agent of the

Licensee, or an affiliate of the Licensee, or any officer, principal, partner, member, owner, director, employee, or agent of the affiliate of the Licensee been a defendant in any civil litigation in the past five (5) years? Yes No

b) Was there a judgment? Yes No

If yes, provide details and copies of all applicable documentation: NOTE: That pursuant to COMAR 09.03.10.02(A)(2) the Licensee is required to report to the Agency within five (5) business days after learning of a felony conviction or a misdemeanor conviction involving fraud, theft, or forgery of itself or any owner, director, officer, member, partner, employee, or agent of the Licensee.

29) a) Has the Licensee, or any officer, principal, partner, member, owner, director, employee, or agent of the

Licensee, or an affiliate of the Licensee, or any officer, principal, partner, member, owner, director, employee, or agent of the affiliate of the Licensee been indicted in any criminal matter in the past five (5) years? Yes No b) Was there a criminal conviction? Yes No c) Was there a settlement or judgment? Yes No

If yes, provide details and copies of all applicable documentation:

30) Does the Licensee have any direct or indirect knowledge that any officer, principal, partner, owner, member, member, director, employee or agent of the Licensee misused, embezzled, absconded with, or willfully misapplied any funds or valuables for which the Licensee was responsible during the past five (5) years not accounted for in question 36? Yes No

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If yes, provide details and copies of all applicable documentation:

31) Does the Licensee have any direct or indirect knowledge, or have a reason to believe, that an act of fraud, theft or forgery has been committed by a regulated person or any officer, principal, partner, member, owner, director, employee, or agent of a regulated person since your last exam? Yes No

If yes, complete the fraud, theft and forgery reporting form found at www.dllr.state.md.us/finance, and attach a copy of the completed form to this Questionnaire. NOTE: Pursuant to COMAR 09.03.10.02(A)(1), the Licensee is required to report to the Agency within thirty (30) business days after discovering, or having a reason to believe, that an act of fraud, theft or forgery has been committed by a regulated person, including any officer, principal, partner, member, owner, director, employee, or agent of a regulated person.

32) Has the Licensee had a claim filed against its surety bond, letter of credit or other similar instrument during the

past five (5) years? Yes No If yes, provide details and copies of all applicable documentation:

33) Are there any tax liens against Licensee? Yes No

If yes, provide details and copies of all applicable documentation:

34) Documentation in connection with pending litigation. If the Licensee or any affiliate with which the Licensee either shares profits and losses or rolls its financials for tax and reporting purposes is the subject of any litigation involving a claim or demand, which if successful, would be equal to or greater than 5% of the Licensee’s net worth, provide a letter from the Licensee’s counsel that includes: • who is the plaintiff or defendant; • the dollar amount involved; • a brief description of the suit or claim; • the status of the suit; and • any other relevant information.

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TYPE OF BUSINESS 35) Indicate the primary type of business the Licensee is engaged (check all that apply):

☐Check Cashing

☐Financial Services ☐Liquor Store ☐Laundromat ☐Convenience Store ☐Supermarket ☐Other: _________________________

36) Does Licensee engage in other business activities regulated by the Commissioner?

Yes No

If yes, provide details:

FEDERAL REQUIREMENTS 37) Provide a copy of Licensee’s Money Service Business (MSB) Registration, including a copy of any

acknowledgment letter from the federal government.

38) Provide the following information regarding the Licensee’s Anti-Money Laundering (AML) program: • A copy of the Licensee’s policies, procedures and internal controls; • Name, job title and contact information for the individual compliance person overseeing the Licensee’s AML

program; • A complete description of the training process for employees, including the dates of training sessions, and

attendance records; and • A copy of any independent review of the Licensee’s AML program (include a copy of any formal response(s)

noting the action(s) taken to address exception).

39) Is Licensee an Authorized Delegate [as defined in FI § 12-401(c)] for a person or business entity engaged in the business of providing money transmission services? Yes No

If yes, list name(s) of the persons and/or business entities for which the licensee is acting as an Authorized Delegate and provide a copy of the authorized delegate agreement:

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40) MSB services provided (check all that apply):

Money Transmission

If yes: Domestic / International / Payout Location Prepaid Access

If yes: Initial Loads / Reloads Money Order Sales Check Cashing Bill Payments

Currency Exchange Other: _________________________

41) Provide a list of all Currency Transaction Reports (CTRs) filed over the past (5) five years.

42) Provide a list of all Suspicious Activity Reports (SARs) filed over the past (5) five years.

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SECTION #2: CHECK CASHING SERVICES 1) Complete “Schedule B” attached to this Questionnaire.

2) If applicable, describe the software and computer systems used by Licensee in providing check cashing services

to Maryland consumers:

3) Provide a copy of the policies and procedures for handling consumer complaints. Additionally, provide a list of

all Maryland customer complaints for the past twenty-four (24): 4) Provide a copy of the policies and procedures for handling non-sufficient fund (NSF) payment instruments

received, including a list of fees charged. Additionally, provide a list of NSF payment instruments received from Maryland customers for the past twenty-four (24) months, including the name of each customer and the amount of any fee charged for the NSFs.

5) Provide a list of all payment instruments received from Maryland customers and cashed by the Licensee in the

past twenty-four (24) months in MS Excel, CSV, or compatible, workbook files in digital format (i.e. .xls, .xlsx, .csv) spreadsheets, as separate sortable attachment from the rest of the Questionnaire. For each payment instrument listed in the spreadsheet, the following information shall be included: • The transaction date; • The name of the customer; • The type of payment instrument; • The amount of the payment instruments; • The amount of fee charged; and • A complete description of the identification presented by the customer. NOTE: The Agency may select a random sample of bank statements and canceled checks to be reviewed during the investigatory examination process.

SALES AND MARKETING 6) Provide Licensee’s main source(s) for obtaining business during the past three (3) years (check all that apply):

Referral Telephone Solicitation Print Advertisement Internet Advertising Television/Radio Advertisements Other (specify) Social Media 7) Provide copies of all sales, marketing and promotional materials used by the Licensee in the State during the

previous 90 days, including mail, telemarketing scripts, flyers or related items.

8) Provide internet address(es) of web sites used to generate or facilitate the Licensee’s business:

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9) Does the Licensee utilize social media as a means for marketing? Yes No

If yes, provide copies of any and all policies and procedures regarding the use of social media, including any guidelines relating to the advertisement through social media by employees or agents of the Licensee covering services rendered in the course of their employment by the Licensee. Additionally, provide a list of all social media platforms used by the Licensee for marketing in Maryland with copies of all marketing and promotional materials posted or utilized during the social media marketing campaign, including, but not limited to, screenshots of the marketing material.

NOTE: Additional information and documentation may be requested during the course of the examination process.

MAKE SURE TO COMPLETE THE CERTIFICATION PAGE

LOCATED ON THE LAST PAGE OF THIS PACKET

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THIS PAGE INTENTIONALLY LEFT BLANK

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Schedule A (Complete this schedule in lieu of supplying Organizational Charts in Section #1, Question 18)

Name Title Percent of ownership Area of Responsibility

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Schedule B Complete this schedule for all employees who have conducted check cashing services for the licensee over the past twenty-four (24) months. This list should include name, job title, job description or area of responsibility and dates of employment. Name Job title Job description or area of

responsibility Dates of employment

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CERTIFICATION PAGE

The material provided pursuant to this Manager’s Questionnaire shall be provided under the following Certification:

______________________________, certifies that I am

_____________________________________, of ________________________ and that, (Title of Authorized Representative) (Name of Licensee)

I solemnly affirm under the penalties of perjury and upon personal knowledge that the contents

of the foregoing answers, the information contained therein and attached to supplemental

schedules, and all other information and documentation submitted in response to this Manager’s

Questionnaire are true.

Certified this ________day of ______________, 20____

_____________________________________ ________________________ (Signature of Authorized Representative) (Representative’s Title)

Return completed Manager’s Questionnaire with executed Certification Page by electronic mail at non-depository.examination@maryland.gov or by mail at:

Office of the Commissioner of Financial Regulation

500 North Calvert Street Baltimore, Maryland 21202

Attn: Check Cashing Compliance Unit