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Plans for More State Oversight of MSBs Likely to Face Funding Hurdles
By Colby Adams
printA U.S. Treasury Department budget proposal to shift Bank Secrecy Act oversight duties from the IRS to state examiners could run into funding troubles from state agencies, say officials. Under the plan, the department's Financial Crimes Enforcement Network (FinCEN) would partially offset millions of dollars in planned fiscal year 2012 budget cuts by withholding $5.9 million in annual reimbursements to the IRS for anti-money laundering (AML) examinations of money services businesses (MSBs). FinCEN would instead use $2.5 million "to better carry out its responsibilities to coordinate among all financial supervisory agencies exercising delegated examination authority, as well as state supervisory...
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