Regulatory Alerts2005-03-30
Added
Joint Statement on Providing Banking Services to Money Services Businesses
The Federal Banking Agencies and FinCEN clarify that banking institutions are not required to serve as de facto regulators of the money services business industry. Banks must apply Bank Secrecy Act requirements on a risk-assessed basis, similar to other customers, and management decisions to accept or maintain accounts must be based on the institution's assessment of associated risks and capacity to manage them. The agencies further state that money services businesses complying with the Bank Secrecy Act and applicable state laws should remain within the formal financial sector subject to appropriate anti-money laundering controls.