The U.S. Treasury Department's financial intelligence unit fined a now-defunct New Jersey money transmitter $125,000 for repeatedly and willfully violating Bank Secrecy Act requirements.
The U.S. Treasury Department Thursday fined a Miami money services business and its owner $10,000 for failing to register and implement an effective Bank Secrecy Act program.
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.
As many as a half dozen banks have severed relationships with foreign money services businesses for failing to register with the U.S. Treasury Department under rules that took effect earlier this year, say compliance professionals.
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).
A 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.
A U.S. Treasury Department plan to increase reporting on cross-border transactions would allow federal regulators and investigators to more easily detect unregistered money remitters - if they can sift through the data.
For money transmitters, proving to a bank that your company isn't too big of an anti-money laundering risk to take on can be difficult, even more so when you've encountered compliance problems.
Gauging the vulnerability of money service businesses' agents to being used to launder money or finance terrorism is central to adopting a risk-based approach to compliance, according to a global watchdog report released Monday.
Lawmakers re-introduced a bill Wednesday that would allow money services businesses to certify that they are compliant with anti-money laundering regulations, a move the industry believes could help make them less risky customers and keep banks from dropping their accounts.
Hardships in the financial industry are powering a second wave of banks dropping their money services business clients, which can require costly anti-money laundering vetting, say consultants.
The number of suspicious activity reports filed by money services businesses increased slightly in the first half of 2008 compared to the same period in 2007, according to data provided by the U.S. Treasury Department.
The U.S. House of Representatives passed a bill Tuesday that would allow money services businesses to certify that they are compliant with anti-money laundering regulations.