Monday, December 13, 2021
Renard pointed out that independent ATM operators are fully vetted business owners with security clearances who are nevertheless treated as high-risk businesses by risk-averse financial institutions. “The prior version of the manual’s section relating to independently owned ATMs mischaracterized our accounts as categorically at ‘high risk’ of ‘money laundering and fraud,’ which is an inaccurate mischaracterization that has served to wrongfully stigmatize this truly vital industry sector,” Renard said.
Renard further noted that independent ATM operators must be sponsored by specialized banks with rigorous underwriting practices. The due diligence performed by these financial institutions ensures against any potential misconduct, he stated, adding that ATM operators’ vault-cash accounts are not categorically high-risk.
George Sarantopoulos, CEO of Access One Solutions and NAC board chair, agreed that the FFIEC updates place bank-sponsored independent ATM companies in a more positive light and address what he termed the biggest hurdle to independent operators trying to get into or stay in the retail ATM business.
“Every bank letter that tells ATM operators they have 30 days before their accounts are closed is like an iceberg hitting the Titanic,” Sarantopoulos said. “It’s not easy to find another bank relationship, and these matters take time away from running a business.”
Sarantopoulos emphasized that independent ATM owners, deployers and operators are not categorically high-risk accounts, despite the fact that they are, by definition, cash-intensive businesses. NAC has worked diligently for years with policymakers and regulators on Capitol Hill to help restore essential banking services for the retail ATM sector, and this latest FFIEC action appears to represent the fruits of that labor, he stated.
Mike Powell, NAC chair of governmental affairs committee and founder of First Regents Bancservices, thanked the FFIEC for its support of the nation’s independent ATM entrepreneurs, as well as millions of U.S. citizen who rely on ATMs for essential services and cash. He went on to thank FFIEC Chairman Todd Harper and House members for their collaborative efforts to update the ATM section of the Examination Manual.
“We especially appreciate the excellent bipartisan leadership, expertise, and resources brought to bear by senior House Members, Representatives Carolyn Maloney, D-N.Y., and Blaine Luetkemeyer, R-Mo., that helped bring this issue, and the urgent need for corrective action, to the full attention of the FFIEC and its constituent agencies,” Powell said. “We also want to recognize and express sincere thanks to the other bipartisan congressional leaders who addressed this critical issue with the bank regulators to encourage resolution: John Rose, R-Tenn., Tom Suozzi, D-N.Y., Barry Loudermilk, R-Ga., Donald Payne Jr., D-N.J., David Kustoff,R-Tenn., Lee Zeldin, R-N.Y., Van Taylor, R-Texas, and Josh Gottheimer, D-N.J.”
While Powell acknowledged additional work remains to be done, he said he sees a “path to reasonable banking access for independent ATM operators.”
Renard concurred, stating it has taken a broad and diverse constituency of ATM deployers and suppliers from across the country to draw attention to this issue. “Hopefully, this latest update to the FFIEC Exam Manual will be the game changer needed to jump-start the full restoration of reasonable banking access for America’s independent ATM operators,” he said. 
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