On July 21, 2011, the Financial Crimes Enforcement Network (FinCEN) published a Final Rule that clarifies, inter alia, which businesses qualify as Money Services Businesses (MSBs) under the Bank Secrecy Act (BSA). This rule becomes effective on September 19, 2011.
Background
Under the BSA, the following are defined as MSBs: (1) currency dealers or exchangers, (2) check cashers, (3) issuers of traveler’s checks, money orders, or stored value, (4) sellers or redeemers of traveler’s checks, money orders, or stored value, (5) money transmitters, and (6) the U.S. Postal Service. MSBs are generally required to:
1. Establish written AML programs that are reasonably designed to prevent the MSB from being used to facilitate money laundering and the financing of terrorist activities;
2. File Currency Transaction Reports and Suspicious Activity Reports; and
3. Maintain certain records, including those relating to the purchase of certain monetary instruments with currency, transactions by currency dealers or exchangers, and certain transmittals of funds.
Please see full Alert below for further information.
Please see full publication below for more information.
