A U.S. Treasury Department official told banking representatives at a recent roundtable meeting not to expect safe harbor protections for providing accounts to money services businesses, according to multiple sources. Despite concerns that the businesses have been unduly turned away by risk-averse banks, department officials believe that offering such legal protection would reduce institutional compliance with anti-money laundering (AML) rules, a high-ranking regulator with the Office of the Comptroller of the Currency (OCC) told meeting attendees in January. The remarks came in response to questions about the possibility of shielding banks from regulatory fines and other penalties as the U.S....
Not all money transmitters are overly vulnerable to money launderers and terrorist financiers and banks should refrain from automatically closing their accounts, U.S. Treasury Department officials said Monday.
Failing to find conventional financial services, some money services businesses have asked armored car companies to bank on their behalf without the knowledge of the institutions maintaining the accounts, say consultants.
Thousands of small money services businesses have lost some federal anti-money laundering oversight and guidance due to budget cuts involving two U.S. Treasury agencies, according to current and former government officials.
When training agents working through money services businesses, compliance officials should take a creative, multimedia approach, said Anthony Rodriguez, global compliance officer at the Los Angeles-based Associated Foreign Exchange, Inc (AFEX).