Regulatory Alerts2003-03-20
Added
Money Laundering Prevention - An MSB Guide
The Financial Crimes Enforcement Network defines Money Services Businesses as entities offering services like money orders, traveler’s checks, check cashing, currency dealing, or stored value that conduct more than $1,000 in activity with the same person on the same day or provide money transfer services in any amount. MSBs are required to register with FinCEN, maintain agent lists, and implement anti-money laundering compliance programs. Covered MSBs must file Suspicious Activity Reports for transactions of $2,000 or more, Currency Transaction Reports for transactions exceeding $10,000, and maintain logs for monetary instruments between $3,000 and $10,000. Non-compliance with these Bank Secrecy Act regulations can result in civil penalties of up to $500 for negligent violations and criminal penalties including fines up to $500,000 or imprisonment for up to 10 years.