FinCEN issued a Geographic Targeting Order (called a “GTO”) designed to combat income tax return fraud. The GTO applies to check cashers in Miami-Dade and Broward counties, which FinCEN describes as having “become a hotbed for stolen identity tax refund fraud.” In these schemes, a “criminal files a fraudulent tax return after stealing a victim’s identity and then cashes the refund check at a local check casher” using fake identification. The aim of the GTO is to “make it much more difficult for these criminals to remain anonymous.”
When cashing a U.S. Treasury tax refund check or a refund anticipation loan check (where a business lends money in return for receiving the borrower’s income tax refund) for over $1,000, a check casher must obtain:
- a copy of the customer’s ID (driver’s license, passport), which must be in the same name as the payee of the check
- a digital photograph of the customer (the photo must be of the same person as the photo on the ID)–but an “image captured by a surveillance video is not sufficient”
- the customer’s telephone number
- a clear thumbprint, which must be recorded on the check (already a requirement under section 560.310(c) for money services businesses licensed by Florida)
These records must be retained for five years after the GTO expires. The GTO is in place from August 3, 2015 through January 30, 2016.
Taking pictures of customers may prove to be the most difficult requirement to comply with. FinCEN’s director states that the GTO will ensure that criminals “can no longer hide their face,” but customers may object to having their pictures taken when cashing a check.