Hardships in the financial industry are powering a second wave of banks dropping their money services business clients, which can require costly anti-money laundering vetting, say consultants. The companies suffered through a period of banks closing their accounts following April 2000 guidance by the U.S. Treasury Department that identified the businesses as high risks for money laundering. A number of institutions, including JPMorgan Chase and Citigroup Inc., consequently dropped their MSB clients, with a few banks, including Bank of America, reentering the market in 2007 and early 2008. But the industry's access to banking services in Florida and New York,...
San Francisco-based AirBnB isn't exactly what springs to mind when thinking of money services businesses, but the 6-year-old company deemed itself just that last year by registering with the U.S. Treasury Department.
Not all money transmitters are overly vulnerable to money launderers and terrorist financiers and banks should refrain from automatically closing their accounts, U.S. Treasury Department officials said Monday.
Bank of America has reportedly resumed offering banking services to money services businesses (MSBs), reversing a trend at the bank, and the industry as a whole, to drop money transmitters because regulators have labeled them as higher risk.