News
Treasury Creates New Class of MSB in Proposed Rules on Prepaid Cards
By Colby Adams and Brian Monroe
printThe U.S. Treasury Department proposed Monday to place non-bank providers of prepaid access products into a distinct category of money services businesses in an effort to impose Bank Secrecy Act regulations on the prepaid card industry. As part of the long-anticipated notice of proposed rulemaking, the department's Financial Crimes Enforcement Network (FinCEN) would require prepaid access providers and sellers to file suspicious activity reports and for providers to register with the bureau as a money services business (MSB). The proposed measures, which replace the term 'stored value' with 'prepaid access,' and the terms 'issuer' and 'redeemer' with 'provider' and 'seller,'...
TO READ THE FULL STORY
Related News
A congressionally-mandated plan to require U.S. border crossers to declare funds held on prepaid cards remains stalled at the White House more than a year after its submission for final review.
The rise of online vendors offering to buy bulk gift cards is drawing the attention of investigators who believe the nascent industry may serve as an avenue for money launderers.
The theft of $45 million by cybercriminals exploiting and manipulating stolen prepaid card data highlights weaknesses in how financial institutions monitor the use of stored value products, say security experts.
U.S. lawmakers Thursday criticized federal officials for delays in finalizing anti-money laundering rules and failing to prosecute banks and bankers that facilitate billions of dollars in illicit transactions.
Trade-based schemes and bulk cash smuggling are among the most common tactics used by international money launderers, according to Joseph Gallion, the deputy assistant director of the Financial, Narcotics and Special Operations Division for the Homeland Security Investigations (HSI).
The U.S. Treasury Department's proposals to better regulate prepaid access products fail to outline how the new rules will be implemented and enforced, according to a governmental watchdog group.
Banks will receive fewer law enforcement data requests during the early stages of financial crime investigations as the result of new rules on cross-border transaction reporting, according to the head of the U.S. Treasury Department's financial intelligence unit.
Several banks are asking the U.S. Treasury Department's financial crimes bureau for the unthinkable: more anti-money laundering compliance responsibilities.
The Internal Revenue Service's anti-money laundering division is in the process of revamping how it examines tens of thousands of money services businesses, according to a former U.S. Treasury Department official.
U.S. money services businesses are focusing their Bank Secrecy Act compliance efforts on ensuring proper program implementations by agents and others, the country's financial intelligence unit said Monday.
Proposed regulations by the U.S. Treasury Department on the prepaid card industry are raising questions and concerns among anti-money laundering compliance consultants on how the rules can be implemented and enforced.
The European Union proposed rules Tuesday on how electronic money might be issued, a step meant to further expand the market for prepaid and stored value payment products.