Resources and recommendations will help ATM operators deal with lingering impact of OCP
The ATM Industry Association (ATMIA) has released an Operation Choke Point Resource Kit to aid ATM operators in dealing with the lingering impact of Operation Choke Point (OCP) on legitimate businesses. Although the FDIC and Department of Justice (DOJ) have publicly stated that the program has been terminated, ATMIA continues to receive copies of account closure letters from ATM operators across the country. The kit includes documents that provide some history on OCP, information on efforts to end it, FinCEN forms and instructions, and an OCP checklist and recommendations.
“There is speculation throughout the industry that the real reason ATM operator accounts are being closed is because of poor profitability in the current regulatory environment,” states ATMIA US Executive Director, David Tente. “If that is indeed the case, all operators – particularly those with accounts at larger national banks – will need to have a ‘Plan B’ for the foreseeable future.”
ATMIA recommends that any ATM operator relying on a single financial institution for its business and/or cash settlement needs, work to establish a cash relationship with at least one additional financial institution. Other key recommendations in the checklist include:
- Meet with your current and prospective financial institution partners to discuss business operations and cash flow in detail
- Maintain separate accounts for ATM vault cash and interchange and surcharge settlement
- Ask your sponsor bank for a letter identifying your business as a “Sponsored” Operator
- Request your bank to have you designated as an “exempt person” for CTR reporting
The Operation Choke Point Resource Kit is being made available to both ATMIA members and non-members. Download the entire kit or just individual documents by clicking here. Additional information about ATMIA advocacy efforts is available on the ATMIA website.
About ATMIA www.atmia.com
ATMIA is the leading non-profit trade association representing the entire global ATM industry. ATMIA serves more than 10,500 members from over 650 participating companies in 67 countries spanning the whole ATM ecosphere, including financial institutions, independent ATM deployers, equipment manufacturers, processors and a plethora of ATM service and value-added solution providers. ATMIA provides education, advocacy and connections to help its members keep abreast of industry news and developments; increase knowledge and professionalism; improve operational efficiencies; understand and influence regulatory processes; participate in the local, regional and global ATM community; and forge new relationships to advance their businesses. Founded in 1997, ATMIA has active chapters in the United States, Canada, Europe, Latin America, Asia-Pacific, Asia, Africa, India and the Middle East focusing on the unique needs and issues of each region. For more information, please visit atmia.com. Follow us on LinkedIn, Twitter or YouTube.
