23.0 Suspicious Activity Reporting 

23.1 SARC and FinCEN
Each Franchise Holder shall follow all Federal Law regarding SARC and FinCEN.

23.2 Confidentiality of Reports; Limitation of Liability
(a) No Franchise Holder, and no director, officer, employee, or agent of any Franchise Holder, who reports a suspicious Transaction under this part, may notify any person involved in the Transaction that the Transaction has been reported, unless required to do so by applicable law or regulations.

(b) Thus, any person subpoenaed or otherwise requested to disclose a SARC or the information contained in a SARC, except where such disclosure is requested by FinCEN or another appropriate law enforcement or regulatory agency, shall decline to produce the SARC or to provide any information that would disclose that a SARC has been prepared or filed, citing the requirements of Title 31 U.S.C. and shall notify FinCEN of any such request and its response thereto.

(c) A Franchise Holder, and any director, officer, employee, or agent of such Franchise Holder, that makes a report pursuant to this section, whether such report is required by this section or made voluntarily, shall be protected from liability for any disclosure contained in, or for failure to disclose the fact of, such report, or both, to the extent provided by Title 31 U.S.C or other applicable law.

23.3 Currency Transactions and Suspicious Transactions Compliance Programs
(a) Each Franchise Holder shall develop and implement a written program reasonably designed to assure and monitor compliance with the requirements set forth in this section.

(b) At a minimum, each compliance program shall provide for:

i. A system of internal controls to assure ongoing compliance;

ii. Internal and/or external independent testing for compliance;

iii. Training of Franchise Holder personnel, including training in the identification of unusual or suspicious Transactions, to the extent that the reporting of such Transactions is required by applicable law or regulation, or by the Franchise Holder’s own administrative and compliance policies;

iv. An individual or individuals to assure day-to-day compliance;

v. Procedures for using all available information to determine:

(1) When required by this section, the name, address, social security number, and other information, and verification of same, of a person;
(2) When required by this section, the occurrence of unusual or suspicious Transactions; and
(3) Whether any record must be made and retained.

(c) For Franchise Holder’s that have automated data processing systems, the use of automated programs to aid in assuring compliance is permissible.

23.4 Notification to the EGS Section
(a) In addition to any SARC activity, the Franchise Holder will notify the EGS Section of:

i. Any variance of $1,000 upon reconciliation at any teller cage, bank or redemption kiosk. The notification shall include at which the variance took place and the name of the employee responsible for the variance; and

ii. Any facts which the Franchise Holder has reasonable grounds to believe indicate of a violation of law, or minimum internal control standard requirements committed by the Franchise Holder its employee or others.