Regulatory Alerts2010-01-19
Added
Determination of Money Services Business Status and Obligations Under the Funds Transfer Recordkeeping Rule, and Request for Regulatory Relief
FinCEN determines that the Companies are not money transmitters for services rendered to Contract Clients, as these activities constitute merchant payment processing. However, the Companies qualify as money transmitters for payments transmitted to Billers lacking pre-existing contractual relationships, thereby subjecting those specific transactions to Money Services Business obligations. Transactions processed via automated clearinghouse systems are excluded from the definition of transmittal of funds, granting the Companies relief from Funds Transfer Rule and Travel Rule requirements for those transfers.