U.S. regulators are failing to help mend the broken relationship between money services businesses and banks after causing much of the damage, MSB trade groups say. The U.S. Financial Crimes Enforcement Network (FinCEN), after stating in March 2005 that MSBs were losing access to bank accounts at an "alarming rate," launched an effort to persuade banks to maintain their relationships with MSBs. Officials at the Office of the Comptroller of the Currency (OCC) and other regulatory agencies have initiated similar efforts. David Landsman, executive director of the National Money Transmitters Association, an MSB trade organization based in Great Neck, N.Y.,...
A federal letter asking money services businesses to turn over data on their agents marks the first broad U.S. effort in 14 years to better understand the scope of the fractured money transmitter market.
Money services businesses are jumping through a new hoop to prove they have adequate anti-money laundering programs: in response to demands from banks, they are turning over copies of the independent reviews of their programs meant for regulators.
The Federal Deposit Insurance Corporation will share data on money service businesses with two state banking departments in an effort to streamline how it tests banks on Bank Secrecy Act compliance, the agencies said Monday.
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.