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FinCEN Reloadable Card Ruling Puts AML Burden in Wrong Place, Consultants Say
By Matt Squire
printA U.S. Treasury Department ruling that clears merchants that reload stored value cards of Bank Secrecy Act compliance responsibilities may unfairly place that responsibility on bank sponsors of reloadable card programs, consultants say. In a March 10 letter, the Treasury's Financial Crimes Enforcement Network (FinCEN) said merchants and ATMs that facilitate the reloading of stored value cards do not qualify as money service businesses and therefore need not honor anti-money laundering requirements. "[FinCEN] is shifting the compliance burden to banks [sponsoring the merchant's reloadable program]," said Carol Van Cleef, a partner with Bryan Cave, a law firm in Washington, D.C....
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