Treasury Official Says Not All Money Transmitters Deserve High Risk Ranking

By Kira Zalan and Colby Adams

U.S. authorities will clarify in pending guidance that not all remittance companies are susceptible to illicit financial activity, a government official said Wednesday. In an online statement, U.S. Assistant Secretary for Terrorist Financing Daniel Glaser said that financial institutions should not treat all money transmitters as high-risk and could mitigate their exposure to potential regulatory enforcement actions with sufficient controls. U.S. officials also plan to revise their anti-money laundering and counter-terrorist financing expectations for money transmitters, improve their oversight of the industry and "continue ongoing outreach to financial institutions and the customers they serve," said Glaser. As part of those...