Check Casher Legislation Considered
In the pages of The Green Sheet we've discussed the fact that check cashers are resembling banks more and more every day. So, in essence, they have to compete with banks. They also have to compete with other establishments who cash checks, such as convenience stores and liquor stores.
As many know, cashing checks and using money orders provides an opportunity to launder money. Therefore, the Subcommittee on General Oversight and Investigations is proposing rules that check cashers feel unfairly signal out their industry.
According to Jerome Gagerman, speaking on behalf of the National Check Cashers Association, all Money Service Businesses should be required to register as check cashers. But, the Treasury doesn't want to require registration for businesses who cash checks as accommodation. They only want to require registration for businesses with more than $50,000 in gross transactions.
But, as Gagerman points out, if there are certain locations that don't have to be registered, they will have a competitive advantage over check cashers. Moreover, criminals will know where to go to avoid the IRS and law enforcement.
