The group that created the Uniform Commercial Code expects to complete a standard state licensing requirement for check cashers and other nonbanks by January.

Tom Bolt, who chairs the committee writing the standard for the National Conference of Commissioners on Uniform State Laws, said Friday the move is designed to curtail money laundering by making it harder for unscrupulous businessmen to run check cashing outlets.

"Although a number of states have legislation dealing with some of these businesses, they do not require the same level of compliance as banks," said Mr. Bolt, who also is executive vice president of the Virgin Islands Bankers Association.

A 1994 federal anti-money-laundering law urged the advisory group to develop state licensing requirements for these so-called money services businesses.

The group is still finalizing which businesses will be covered and how closely they should be supervised, Mr. Bolt said. States would not be required to adopt the standard.

Lawyer Ezra C. Levine, who represents seven national nonbank funds transmitters, said he fears the states will duplicate federal reporting requirements. Mr. Bolt, however, said the group's proposal will not be redundant.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.