The U.S. Treasury Department on Monday ordered money services businesses in South Florida to more closely scrutinize clients cashing federal tax-refund checks as part of a crackdown on rampant fraud.
Failing to find conventional financial services, some money services businesses have asked armored car companies to bank on their behalf without the knowledge of the institutions maintaining the accounts, say consultants.
The Financial Crimes Enforcement Network (FinCEN) issued an administrative ruling Friday clarifying when financial institutions must file currency transaction reports for transactions with armored car companies.
Financial institutions should be looking for signs that any of their armored car customers has become involved in check cashing, which would qualify them as money services businesses and subject them to BSA requirements.
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