Office of the Lieutenant Governor

Division of Banking, Insurance and

Financial Regulation



#5049 Kongens Gade, Charlotte Amalie, St. Thomas, USV'T 00802-6487 @ (340) 774-7166 @ Fax (340) 774-9458

1131 King Street, Suite 101, Chnistiansted, St. Croix, USVI 00820 @ (340) 773-6459 @ Fax (340) 719-3801

lty-govvi



BULLETIN 2019-07



TO: U.S. VIRGIN ISLANDS STORE OWNERS CONDUCTING CHECK CASHING

BUSINESS



RE: LICENSING OF CHECK CASHERS IN THE TERRITORY



This Bulletin serves to remind the general public of the regulatory requirements to conduct

“check cashing” business in the Virgin Islands pursuant to Title 9, Chapter 22, V.I. Code (Uniform

Money Services Act). ‘A person may not engage in check cashing or advertise, solicit, or hold

itself out as providing check cashing for which the person receives at least $500 within a 30-day

period” unless the person is licensed as a check casher, currency exchanger or money transmitter

in accordance with 9 V.I.C § 521(a).



9 V.I.C. § 502(4) defines “Check Cashing” as “receiving compensation for taking payment

instruments or stored value... in exchange for money, payment instruments or stored value

delivered to the person delivering the payment instrument or stored value at the time and place of

delivery without an agreement specifying when the person taking the payment instrument will

present it for collection.”



It has come to the attention of the Office of the Lieutenant Governor, Division of Banking

Insurance and Financial Regulation (“Division”) that it is common practice for persons in the

community to go into a grocery store or other establishments with a check written to them as payee,

purchase goods that do not equal to the amount of the check and grocery stores and other

establishments would cash the check for a fee of 10% of the amount of the check. It should be

noted any check written by one person for another (the payee) and that is then given to a third

person to cash or deposit in its account is called third-party check.



Owners of stores should be aware, cashing third-party checks is in direct violation of the

Uniform Money Services Act, if a check cashing license is not maintained by the store owner

pursuant to Title 9, Subchapter III, Section 521 of the Virgin Islands Code. It is imperative that

store owners and consumers recognize it does not matter that goods were purchased from the

establishment only that a fee was charged in exchange for the cashing of a check.



In accordance with 9 V.I.C. §§ 575 and 576, violation of Chapter 22 by any person or

establishment not licensed to conduct check cashing may result in:



(1) acivil penalty not to exceed $1,000 per day for each day the violation is outstanding,

plus the State’s costs and expenses for the investigation and prosecution of the matter,

including reasonable attorney’s fees; or



(2) criminal penalties if a person knowingly engages in an activity for which a license is

required under this chapter without being licensed under this chapter.



Accordingly, any persons seeking to conduct check cashing business must maintain a

license. Applications for licensure to conduct check cashing business can be obtained from the

Division’s office on St. Thomas at Suite 200 Nisky Center, St. Thomas.



If there are questions regarding this Bulletin, please contact the Division by calling (340)

774-7166 on St. Thomas or (340) 773-6459 on St. Croix.



Dated this / G th day of August 2019 on St. Thomas, U.S. Virgin Islands.



Tre oach, Esq. 7

Lieutenant Governor/Chairman of the Virgin Islands



Banking Board