The New York State Banking Department issued an Order of Suspension to Whitestone Check Cashing Corp., a licensed casher of checks pursuant to Article IX-A of the New York Banking Law.
State of New York Banking Department
New York, New York
In the Matter of
WHITESTONE CHECK CASHING CORP.
A Casher of Checks licensed pursuant to Article IX-A of the New York Banking Law
- Respondent -
PURSUANT TO SECTION 373(2) OF THE NEW YORK BANKING LAW
Whereas, WHITESTONE CHECK CASHING CORP. (“Whitestone” or the “Respondent”) was granted a license on June 27, 1996 to engage in business as a licensed casher of checks pursuant to Article IX-A of the New York Banking Law (the “Banking Law”) and currently operates from corporate headquarters located at 30-31 Stratton Street, Flushing, New York 11354; and
Whereas, pursuant to Banking Law Section 373(2), pending an investigation or a hearing for the suspension or revocation of any license or licenses issued pursuant to Article IX-A of the Banking Law, the Superintendent of Banks (the “Superintendent”) may temporarily suspend such license or licenses for a period not to exceed ninety days, provided the Superintendent shall find that such a temporary suspension is in the public interest; and
Whereas, during the course of an examination of Whitestone, commencing October 20, 2003 (the “October 20, 2003 Examination”), significant numerous violations of the Banking Law and related regulations and of the Currency and Foreign Transactions Reporting Act (31 United States Code Section 5311 et seq.) and the accompanying regulations issued by the United States Department of the Treasury (31 Code of Federal Regulations Part 103.11 et seq.)(collectively referred to as the Bank Secrecy Act (the “BSA”)), including: Violations of the BSA, pursuant to 31 C.F.R. Part 103.22, for the failure of Whitestone to file in a timely and complete manner numerous Currency Transaction Reports (“CTRs”); violations of the BSA, pursuant to 31 C.F.R. Part 103.125, relating to the rules and regulations requiring an effective anti-money laundering compliance program; numerous violations of Banking Law Section 373.1(b), relating to the cashing of checks in excess of allowed amounts; numerous violations of various subsections of the Official Compilation of Codes, Rules, and Regulations of the State of New York, title 3, Part 400.3 (“Part 400.3”), relating to books, records and microfilm requirements; violations of Part 400.6(a)(4), relating to the continuous maintenance for each licensed premises net liquid assets of at least $10,000.00; numerous violations of Part 400.6(b)(3), relating to the cashing of checks which were returned unpaid on more than two occasions; numerous and repeated violations of Part 400.8, relating to reports of changes in employees required to be filed by Whitestone with the Banking Department; violation of Part 300, Part 400.7 and of Part 400.14, relating to an employee knowingly cashing counterfeit checks and the subsequent arrest of said employee; and numerous violations of Banking Law Section 672, Part 400.3, the New York Penal Law Section 175.05 and Section 175.10, and of 31 United States Code Section 5324, relating to numerous false entries and alterations of entries within the large item logs of the Kissena Boulevard and Queens Boulevard licensed locations, required to be maintained pursuant to Part 400.3, and relating to the apparent structuring of a transaction to avoid the filing of a CTR; have been found; and
Whereas, as a result of the inability of Whitestone to operate in compliance with Article IX-A of the Banking Law and related regulations and with the BSA, as evidenced by the violations to be cited to Whitestone at the conclusion of its October 20, 2003 Examination cited above, the Respondent has demonstrated its incompetency to act as a licensed casher of checks; and
Whereas, the Superintendent finds that it is in the public interest to temporarily suspend the Respondent’s licenses as a casher of checks in the State of New York for a period of ninety days from the date of this Suspension Order pending an investigation or hearing for the suspension or revocation of the licenses of WHITESTONE CHECK CASHING CORP. as a casher of checks in the State of New York.
NOW, THEREFORE, IT IS HEREBY ORDERED that, pursuant to the authority granted under the provisions of the New York Banking Law Section 373(2), the Superintendent suspends for a period of ninety days from the date of this Suspension Order the licenses of WHITESTONE CHECK CASHING CORP. as a Casher of Checks in the State of New York.
Witness, my hand and official seal of the Banking Department at the City of New York,
Diana L. Taylor
Superintendent of Banks