News & Analysis as of

Money Services Business

Announcement of new reporting tool for money service businesses by state regulators highlights fintech companies

by Ballard Spahr LLP on

The Conference of State Bank Supervisors issued a press release this week in which it announced the April 1 release of a new tool within the Nationwide Multistate Licensing System (NMLS) to streamline reporting by money...more

State Money Service Business Laws—Tips to Avoid Unnecessary Expense and Unexpected Liability

The payments ecosystem has become increasingly diverse in recent years, including not only processors and ISOs, but various types of payment facilitators, bill pay services, virtual wallets and digital currencies. New...more

FinCEN Enforcement Action Highlights AML Compliance Program Failures and Conflicts of Interest for High-Risk MSB Customers

On February 27, 2017, FinCEN announced a $7 million civil monetary penalty against Merchants for willful violations of the BSA. Additionally, the Office of the Comptroller of the Currency (OCC), Merchants’ federal functional...more

Western Union to Pay $586 Million in Restitution and Civil Penalties for AML Compliance Failure

On January 19, 2017, Western Union Financial Services, Inc. agreed to pay civil penalties and restitution to victims of fraud totaling $586 million to resolve actions brought by the U.S. Treasury Department’s Financial Crimes...more

Is Your Data Ready to Move to a Uniform Report Submission? NMLS MSB Call Report Adopted for 22 Licenses as of January 1st

Seventeen state agencies, affecting 22 license types, have currently committed to adopt the NMLS MSB Call report for Q1 2017 reporting. The NMLS MSB Call Report applies to licensees who conduct the following activities: money...more

Fraud is Flourishing: Canada’s Regulatory Patchwork Paves Way for Financial Crimes

by Bennett Jones LLP on

Fraud is alive and well in Canada. It is thriving and fraudsters are innovating. This boom in white-collar crime is partly the result of Canada’s lack of a uniform regulatory system and ineffective law enforcement....more

Virtual Currency May Not Be Money but Dismissal Is Real

Is bitcoin money? Not according to a Florida judge who threw out criminal charges against a defendant accused of money laundering and acting as an unlicensed money services business in violation of state law. What...more

South Carolina Enacts its First Law Regulating Money Transmission

by Bryan Cave on

Last month South Carolina joined 48 other states in regulating money transmission with unanimous passage of House Bill 4554. The bill, enacting the South Carolina Anti-Money Laundering Act, provides the framework for...more

EU brings virtual currency exchanges and wallet providers under the EU Anti-Money Laundering Directive

by Reed Smith on

On 5 July 2016, the European Commission (the Commission) adopted a proposal for a directive that, when passed, will begin to narrow the regulatory gap between the U.S. and the EU for virtual currency exchange platforms and...more

Decreasing the Risk of Derisking: Mitigating Financial Institution Perceived Risk of MSBs

State-regulated financial institutions are best positioned to appreciate the amount of regulatory oversight present for a money services business (MSB) and to use this knowledge to mitigate perceived risk. The same state...more

The Regulatory Pendulum: When is De-Risking by Financial Institutions Too Much?

by BakerHostetler on

In the environment of increasingly aggressive regulatory and criminal enforcement of anti-money laundering (AML) violations, concerns about de-risking – when financial institutions close accounts or restrict access to new...more

Repeat BSA Violations Cited for Two FinCEN Fines

Repeat violations of the Bank Secrecy Act (BSA) are cited by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) for a $1 million penalty against a casino and a $10,000 fine against a money...more

The CFPB’s Examination Authority Over MSBs

by Bryan Cave on

New and existing money services businesses frequently ask when or if the CFPB will “examine” them. All consumer financial services businesses naturally worry about the CFPB’s reach and want to be prepared. This article...more

Federal Regulators Clarify Bank CIP Obligations for Prepaid Cardholders

by WilmerHale on

Banks and credit unions that issue reloadable, general purpose prepaid cards must apply Customer Identification Program (CIP) procedures to those cardholders, according to guidance issued by the federal banking regulators and...more

FinCEN Issues Guidance on MSB Obligations to Supervise Agents

by Locke Lord LLP on

On March 11, 2016, the Financial Crimes Enforcement Network (FinCEN) issued guidance to Money Services Businesses (MSBs) to reiterate “the existing anti-money laundering (AML) program requirements on the principals of MSBs to...more

The Banking Stepchild: Money Service Businesses

by Michael Volkov on

Sometimes risk analysis can result in paralysis. Finding your risk tolerance and applying it to specific situations requires a nuanced approach. I am always wary of anyone who tells me categorical rules – e.g. we do not...more

Pitfalls for the Unwary: Long Arm Jurisdiction of State Enforcement of Money Transmittal Company Laws

by Locke Lord LLP on

Last month we alerted our clients to newly proposed anti-terrorism and anti-money laundering regulations in New York that sought to impose increased compliance requirements and vastly expanded personal liability (including...more

The Financial Report - Volume 14, No. 17 - September 2015 (US)

by DLA Piper on

We all love to quote statistics when they tend to support whatever position we may be advocating. At the same time, however, we are often loath to take the time and effort to respond to surveys or provide information needed...more

Amendments to Canada’s Anti-Money Laundering Legislation: What’s New and What’s Next

On July 4, 2015, the federal government released amended regulations (Regulations) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). While there are some additional regulatory burdens...more

Treasury Department Publishes National Money Laundering Risk Assessment and National Terrorist Financing Risk Assessment

by Davis Wright Tremaine LLP on

On June 12, 2015, Treasury Department issued its National Money Laundering Risk Assessment (NMLRA) and National Terrorist Financing Risk Assessment (NTFRA). This is the Department’s first NMLRA release in a decade and its...more

Corporate Investigations & White Collar Defense - May 2015

It’s an Absolute Privilege to Meet You! Texas Supreme Court Rules That Internal Investigation Report Provided by Shell Oil to DOJ Enjoys “Absolute Privilege” - Why it matters: On May 15, 2015, the Texas Supreme Court...more

Ripple Labs Fined $700,000 Over Bank Secrecy Act Violations: Lessons Learned from FinCEN’s first Civil Enforcement Action Against...

by Reed Smith on

On May 5, 2015, the Financial Crimes Enforcement Network (“FinCEN”) fined Ripple Labs Inc. (“Ripple Labs”) and its wholly owned subsidiary XRP Fund II LLC (“XRP II”) $700,000 for violations of the Bank Secrecy Act (“BSA”)....more

“Firsts” for the World of Virtual Currencies

by Morrison & Foerster LLP on

There have been two recent virtual currency-related actions worthy of note: (1) the Financial Crimes Enforcement Network (“FinCEN”) announced its first civil enforcement action against a virtual currency exchanger, and (2)...more

Department of Justice Settles Virtual Currency Enforcement Action

The US Attorney’s Office in the Northern District of California recently settled an enforcement action against Ripple Labs Inc., a Delaware corporation providing virtual currency exchange services. According to the settlement...more

Bridging the Week - May 2015 #2

Two Traders Subject of CME Summary Suspension for Alleged Spoofing Sued by CFTC Too - Last week, the Commodity Futures Trading Commission commenced a lawsuit in federal court in New York against Heet Khara and Nasim...more

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Cybersecurity

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