Regulatory Alerts2008-09-10
Added
Application of the Definition of Money Transmitter to Brokers and Dealers in Currency and Other Commodities
FinCEN clarifies that a broker or dealer in currency or other commodities is not a money transmitter when it accepts and transmits funds solely to effect a bona fide purchase or sale of those assets for a customer, as such transmission is an integral part of the underlying transaction. However, entities acting as money transmitters solely as agents of another money transmitter are exempt from the registration requirement but remain subject to other money services business regulations. If a broker or dealer transfers funds between a customer and a third party not involved in the commodity transaction, it may be engaged in the business of transferring funds and thus classified as a money transmitter subject to registration.
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