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NON-MSB Operational Disclosure Notice:
Potomac Mortgage Advisors is NOT categorized as a “money servicer” or “transmitter”. We operate as a professional and independent national and state licensed mortgage brokerage firm which facilitates mortgage financing solely via a “business to business” relationship. We conduct business through a wide range of appropriate banking institutions and wholesale mortgage lenders. We coordinate and direct applications to wholesale lending institutions who are responsible for the compliance, processing, underwriting, disclosing, closing, and the funding of approved mortgage loans.
The current rules amended in 1999 by the Financial Crimes Enforcement Network revised the regulatory definitions of certain non-bank financial institutions for purposes of the Bank Secrecy Act (BSA) and grouped the definitions into a separate category of financial institution called "money services businesses" or "MSBs." A business that meets one or more of the definitions of a type of MSB (as currently defined) is an MSB and must comply with BSA requirements applicable to it as an MSB, as a financial institution and as a specific type of MSB.
The capacities in which a business might be acting that could bring it within the definition of an MSB are:
(1) Currency dealer or exchanger.
(2) Check casher.
(3) Issuer of traveler's checks, money orders or stored value.
(4) Seller or redeemer of traveler's checks, money orders or stored value.
(5) Money transmitter.
(6) U.S. Postal Service.
No activity threshold applies to the definition of money transmitter. Thus, a person who engages as a business in the transfer of funds is an MSB as a money transmitter, regardless of the amount of money transmission activity.
Notwithstanding the previous discussion, the term "money services business" does not include Potomac Mortgage Advisors because:
· We are NOT a bank, as that term is defined in 31 CFR 1010.100(d) (formerly 31 CFR 103.11(c)), or
· We are NOT registered with, and regulated or examined by, the Securities and Exchange Commission or the Commodity Futures Trading Commission.
For the complete regulatory definition of "money services business", see 31 CFR 1010.100(ff) (formerly 31 CFR 103.11(uu)).
Note: Each money services business (MSB) is a financial institution. For the regulatory definition of "financial institution," see 31 CFR 1010.100(t) (formerly 31 CFR 103.11(n)).