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House wants higher fees for non-bank ATMs
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Posted on Mar 30 2006
The House of Representatives is seeking higher license fees and stricter security requirements for non-bank automated teller machines in the Commonwealth.
In a 16-0 vote, the lawmakers have passed House Bill 15-36, which would provide for the regulation of ATMs that are not operated by banks. Reps. Martin Ada and Candido Taman were absent during the voting.
Rep. Ray Yumul, author of the bill, reported that there are 24 bank-operated ATMs on Saipan. In addition, there are 35 third party-operated cash machines on Saipan and four on Tinian.
The House Committee on Commerce and Tourism noted that, unlike bank-operated machines, ATMs operated by a third party are not regulated by the government or the Federal Deposit Insurance Corp.
“As a result, non-regulated ATMs are problematic,” the House panel said.
According to the committee, non-regulated ATMs charge a transaction fee but the amount of the fee is not disclosed on or around the machine. In addition, the transaction location of the machine on the receipt is usually in the United States even though the ATM is physically located in the Commonwealth. Furthermore, most of these ATMs have no privacy or identity theft protections or safeguards.
The committee report also cited support from the Department of Commerce, which recommended a license fee for each machine, and Bank of Guam, which called for a more comprehensive background check on ATM operators and stricter penalties for violations of the bill.
H.B. 15-36 proposes a $500 license fee for each ATM. It also sets minimum security requirements for employees and clients.
