Regulatory Alerts2003-08-15
Added
FinCEN Ruling 2003-4 – Definition of Money Transmitter/Stored Value (Gift Certificates/Gift Cards)
FinCEN determined that the issuance of paper mall-wide gift certificates does not constitute a transfer of funds under 31 CFR 103.11(uu)(5), meaning the issuer is not a money transmitter or Money Services Business and is not required to register with FinCEN. The ruling also states that FinCEN does not currently interpret the definition of stored value in 31 CFR 103.11(vv) to include closed system products such as mall-wide electronic gift cards. However, FinCEN noted its intent to engage in further rulemaking regarding the definition of stored value and warned that the ruling is not binding on future changes. Additionally, the entity remains subject to currency reporting requirements under 31 CFR 103.30 if multiple gift cards are sold to an individual in excess of $10,000.