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#381178 - 07/06/05 05:19 PM 314(a) and MSBs
Wigsout Offline
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Wigsout
Joined: Oct 2002
Posts: 40
Tulsa, OK
We are looking at out-sourcing a couple of functions to companies who are MSBs. The companies we are looking into say they are not required to perform 314(a) searches because they are MSBs, yet everything I find says they are included. They are specifically excluded under 314(b), but not 314(a).

Does anyone know where I can find a definite answer as to whether they are excluded or not from 314(a)?
Thanks
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#381179 - 07/07/05 02:52 PM Re: 314(a) and MSBs
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Well, the regulations define a financial institution for the purpose of the 314(a) rules (at 31 CFR 103.100) to be any of the businesses listed in 31 USC 5312(a)(2). That list is extensive and definitely includes MSBs (and a lot of other businesses, too). The "transactions" covered by the 314(a) information requests include transactions that an MSB might handle (purchase of money orders, remittances and money transfers, for example).

So I agree with WigsOut's understanding of the rule. However, I don't believe that the FinCEN 314(a) program addresses the non-depository financial institution well. All of the 314(a)-related information focuses on depository institutions (for example, use of the call report to ID persons authorized to access the 314(a) Web site). None of the material I could find at www.msb.gov mentions the 314(a) requirement.
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#381180 - 07/07/05 07:23 PM Re: 314(a) and MSBs
GreatBlue Offline
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GreatBlue
Joined: Feb 2003
Posts: 2,362
Colorado
I would guess that they are technically covered by the rule, but that there is no mechanism in place right now for them to get the lists. And, until FinCEN puts such a mechanism in place, it is probably the same as not being covered.
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#381181 - 07/11/05 07:05 PM Re: 314(a) and MSBs
Wigsout Offline
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Wigsout
Joined: Oct 2002
Posts: 40
Tulsa, OK
Thanks for the help. It appears that we will be retaining those parts of the searches.
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#381182 - 07/11/05 08:05 PM Re: 314(a) and MSBs
Wigsout Offline
Junior Member
Wigsout
Joined: Oct 2002
Posts: 40
Tulsa, OK
The response I received from FinCEN - -

According to 31 CFR 103.100 (b) FinCEN may "require any (emphasis added) financial institution to search its records to determine whether the financial institution maintains or has maintained accounts..." FinCEN, therefore has the ability to determine the universe of financial institutions subject to 314(a). Currently, FinCEN has not brought MSBs into that universe.

The regulations implementing 314(a) (meant (b)) can be found at 31 CFR 103.110. The regulations allow for any institution who has a required anti money laundering program requirement to participate in voluntary information sharing.

So yes they are, but no they are not.
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