The banks in Juneau, Alaska, a summertime cruise mecca from May to September, won't bank Allyn Moore's money services business (MSB). Efforts by Moore to beef up his compliance program with a $45,000 anti-money laundering (AML) software program didn't help and he's had to turn away hundreds of customers, many of them crew members on the cruise ships, who relied on him to send money abroad. Moore's situation is not uncommon across the United States. Since regulators designated MSBs high-risk for money laundering and terrorist financing, banks have been dumping their accounts fearing regulatory backlash. Some MSBs, like Moore's, stuck...
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.
A federal judge sentenced a digital currency company and its directors to three years of probation and a joint $300,000 fine after a plea deal on charges that the company had helped criminals launder money.
Bank of America has reportedly resumed offering banking services to money services businesses (MSBs), reversing a trend at the bank, and the industry as a whole, to drop money transmitters because regulators have labeled them as higher risk.
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.