implemented your Anti-Money Laundering Compliance Program for your Money
Services Business (MSB)?
If you cash checks, transfer money, sell money orders, traveler's checks or stored value products, you
may be required by law to register with the federal government and adopt an anti-money laundering compliance
program within 90 days.
In 2002, pursuant to
Section 352 of the USA PATRIOT Act,
Financial Crimes Enforcement Network (FinCEN) issued final regulations
to require that all Money Services Businesses
(MSBs) to have an effective compliance program to prevent the MSB from
being used to facilitate money laundering and the financing of
IRS examiners conduct compliance examinations and will be looking at
how effectively your business complies with the anti money laundering
program requirements. Failure to comply can result in fines up to $5000
per violation and/or imprisonment.
Our Anti Money Laundering compliance manual has the procedures, resolutions, certificates and forms
your MSB will need to comply with the Bank Secrecy Act. It contains information
Registering (with FinCEN) your Money Services Business
Maintain your agents lists (if you have any agents)
When and where to file Currency Transaction Reports
When and where to file Suspicious Activity Reports
What information is needed to maintain a Money Instrument Log
Certificate of Adoption of Compliance Program
Designation of Compliance Officer
Certification of MSB Employee Training
Independent Review checklist
Certificate of Independent Review Compliance
FAQs Regarding Anti-Money
Laundering Compliance Program for Money Services Businesses
did this regulation apply to Money Service Businesses?
October 26, 2001, the President signed into law the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT) Act of 2001. Effective April
24, 2002 an amendment now requires Money Service Businesses (MSBs) to establish
anti-money laundering compliance programs to
help prevent, detect, and prosecute international money laundering and the
financing of terrorism.
What is Money
is “laundered?to conceal illegal activity, including the crimes that
generate the money itself, such as drug trafficking. Money laundering conceals
the source of illegal proceeds so that the money can be used without detection
of its criminal source.
Services Businesses (MSB)s have been both witting and unwitting participants in
laundering activities. MSBs have been major targets in laundering operations
because they provide a variety of services such as money orders, traveler’s
checks, money transfers, check cashing, currency exchange, and stored value
services which can be used to conceal the source of illicit proceeds.
To protect themselves, and to support national and international efforts against
financial crime, it is important that MSBs know how money laundering schemes can
operate. This Anti Money Laundering Compliance Program (AML Compliance Program)
contains the basic requirements needed for the MSB to be compliant with federal
is a Money Services Business (MSB)?
business is considered an Money Services Business (MSB) if the business offers
one or more of the following services:
stored value products
money transfer services
do Money Services Businesses (MSBs) register?
MSB must register with the Financial Crimes Enforcement Network (FinCEN).
However, not all MSBs are required to register. For example, if you are an MSB
solely because you are an agent of another MSB, you are not required to
register. Please Note: Registration with FinCEN does not satisfy any state or local
licensing or registration requirement.
are the penalties for non-compliant MSBs?
must register with FinCEN within 180 days after date the business is
established. Any MSB who fails to comply with the requirements to register, keep
records, and/or maintain MSB agent lists may be liable for civil penalties of up
to $5,000 for each violation. Failure to comply also may subject a person to
criminal penalties, which may include imprisonment for up to five (5) years and
is an Anti Money Laundering (AML) Compliance Program?
MSB is required by law to have an effective anti-money laundering (AML)
compliance program within 90 days from the day the MSB business started.
An effective AML compliance program is one designed to prevent the MSB from
being used to facilitate money laundering. Each AML compliance program must be
in writing and must at a minimum:
Incorporate policies, procedures and internal controls reasonably designed to assure compliance with the Bank Secrecy Act
Designate a compliance officer responsible for day-to-day compliance with the BSA and AML program
Provide education and training to appropriate personnel concerning their responsibilities under the program
Provide for independent review to monitor and maintain an adequate AML program.
are the Bank Secrecy Act (BCS) Regulations?
Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department
of the Treasury, administers and issues regulations pursuant to the Bank Secrecy
Act (BSA). Here is a summary of these regulations.
Each business that meets the definition of an MSB must register with
MSBs that are required to register must prepare and maintain a list of their agents, if
File Suspicious Activity Reports (SARs) when any suspicious activity
Required to develop and implement an AML compliance program
File Currency Transaction Reports (CTRs) on transactions more than $10,000 on any one day for the same
Must maintain information on the sale of monetary instruments from $3,000 to $10,000,
Must maintain information for funds transfers of $3,000 or more, regardless of the method of
Must maintain records for each currency exchange in excess of
BSA records must be retained for a period of five years
is the OFAC list?
U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)
issues the Specially Designated Nationals and Blocked Entities List (SDN List).
OFAC regulations require businesses to identify and freeze the assets of
targeted countries, terrorists, drug cartels and other specially designated
is American Credit House, Inc?
American Credit House, Inc is a Georgia corporation since 1996, offers
payment processing services to MSBs such as electronic check guarantee, credit
and debit card processing and check cashing systems. Our management team has a
combined 40 years experience in payment processing and data systems service
management. We can assist you in operating within the mandatory money service business guidelines
by creating a basic anti money laundering compliance program and policy manual
for your MSB.