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Proposed Rules on Prepaid Value Sellers Raise Enforcement Questions
By Brian Monroe and Colby Adams
printProposed regulations by the U.S. Treasury Department on the prepaid card industry are raising questions and concerns among anti-money laundering compliance consultants on how the rules can be implemented and enforced. The department's Financial Crimes Enforcement Network (FinCEN) published the proposal on June 28 after U.S. lawmakers mandated stricter oversight of the industry as part of the Credit CARD Act of 2009. Under the rules, stored value companies would have to report suspicious purchases of prepaid products valued at over $2,000, and collect and retain customer information. The proposal would also establish a regulatory distinction between prepaid access providers, which...
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