Mobile check casher, Payday Express needed support in securing an MSB bank account and got a little more with help negotiating the sale of the business. 

Introduction

Zachary Kirchner was going through the process of purchasing Payday Express, a mobile check cashing business without prior industry knowledge of the industry. Facing multiple challenges during the purchase process, Kirchner encountered difficulties in securing a bank account due to inadequate compliance measures taken by the previous owner. 

The Capital Compliance Experts (CCE) team were able to overcome these obstacles, establish an effective Bank Secrecy Act (BSA) / Anti-Money Laundering (AML) compliance program, negotiate the final sale, and successfully launch Kirchner’s new business within a remarkably short period.

Background

Kirchner recently retired from the military and moved from New York to Arizona. He wanted to invest in a business that is flexible for his new life in the West. As a motivated entrepreneur, he took a significant leap by acquiring a mobile check cashing business. Although lacking experience in the industry, he was determined to overcome the steep learning curve and make the venture a success. However, their journey began with a crucial obstacle: securing a bank account.

Challenges

Due to the negligence of the previous owner in implementing proper compliance measures, the business lacked comprehensive documentation of customer history and transactions. This posed a significant challenge when approaching various banks to establish a new account. The absence of these records raised concerns for potential banking partners, as they sought evidence of regulatory compliance and risk mitigation.

Engaging Capital Compliance Experts

Recognizing the need for expert guidance, Kirchner reached out to Capital Compliance Experts for assistance. The President/CEO, William Souza, a seasoned professional with extensive knowledge in BSA/AML compliance and owning an MSBs, was assigned to the case. His expertise and understanding of the mobile check cashing industry positioned him as an invaluable resource in navigating the complex compliance landscape.

BSA/AML Compliance Program Implementation

The first step involved conducting a thorough risk assessment of the existing compliance framework within the business. The CCE compliance team meticulously examined the policies, procedures, and documentation related to BSA rules and regulations. Recognizing the gaps, CCE worked closely with Kirchner to design and implement a robust BSA/AML program tailored to the unique needs of the mobile check cashing business.

Overcoming Compliance Challenges

Capital Compliance Experts worked diligently to address the compliance deficiencies that hindered securing a bank account. Souza collaborated with Kirchner to establish comprehensive record-keeping practices, transaction monitoring protocols, and customer due diligence processes. By demonstrating a commitment to regulatory compliance, they successfully reassured potential banking partners of the business’s integrity.

Negotiating the Sale

In addition to resolving Payday Express’ compliance hurdles, Souza assisted Kirchner in negotiating the final sale of the business. Leveraging his extensive network and industry knowledge, Souza provided guidance throughout the process leading to the final sale of the business, ensuring that the owner secured a fair deal that aligned with his investment and business objectives.

Results & Success

Thanks to the expertise and dedicated support provided by Capital Compliance Experts, the mobile check cashing business was up and running within a remarkably short period of two weeks. Kirchner expressed immense satisfaction with the outcome, praising Souza and his team for going above and beyond expectations. With a robust BSA/AML compliance program in place, the business not only gained access to a bank account but also demonstrated a commitment to regulatory compliance, fostering trust among customers and his banking partner.

Conclusion

This case study highlights the critical role that Capital Compliance Experts play in ensuring the smooth acquisition and operation of a business. Through diligent efforts, CCE empowered the new owner of a mobile check cashing business to overcome compliance challenges, negotiate a successful sale, and establish a strong foundation for future growth. Implementing an effective BSA/AML program, the business gained the necessary tools to maintain compliance, build customer trust, and thrive in a regulated industry.