Texas issues Supervisory Memorandum 1013 to assist MSBs

The Texas Department of Banking has learned that some banks have expressed reluctance to open or maintain accounts for Money Service Businesses ( MSBs). Supervisory Memorandum 1013 authorizes a licensed MSB to make Reports of Examination ( ROE) issued by the Department in connection with the examination of the MSB activities available to a depository bank to demonstrate its compliance with state and federal statutes.

The licensed MSB may also share its ROE with the management of a bank it has approached about opening an account for its business.

Prior to release, the MSB must redact personal customer information and obtain a written agreement from the bank acknowledging that ROE is confidential.

Review the complete Supervisory Action 1013.