Do we have to complete a customer information profile for the customer Identification Program each time we make a new loan to a customer?
In the answer given by Ryan Rasske on "AML Requirements Upon Identifying an MSB", he stated, "It is up to the bank to conduct the proper due diligence on their MSB customers and ensure they are complying with the law." We are in the process of determining what our responsibility is as a bank to ensure that our customers are complying with the law. What specifically do we need to be doing to be sure that we are using "proper due diligence"?
FinCEN has published a revised form 107 for registration of Money Service Businesses ("MSBs") with FinCEN. The form is dated 12/31/04 and should be used by any MSB registering with FinCEN.
Get the HMDA data in by the end of the month - or sooner. Be sure to do a quality and edit check before sending in your data.
Could you expand upon the implications of having cash-intensive retailers (i.e. grocery stores) who are registered with FinCEN as MSBs? It just came to our attention that because they're an MSB they cannot be exempted, nor can we exempt the grocery store portion of their business and continue to file on the MSB portion unless they're operated under separate TINs. If that's the case, a bank would often need to file a daily CTR, further clogging FinCEN's database. This seems like a regulatory policy that's contrary to the intention of the CTR process. Do we really want 260 more CTRs in the system for a legitimate business? Shouldn't the fact that they've registered with FinCEN make them legitimate and exemptable? Am I missing something? What solutions do you see to such a situation? I suspect many banks are struggling with this emerging issue and would welcome your guidance.
When you purchase software, it isn't enough to take the salesman's promises at face value. In fact, believing the salesman's promises could be a problem. The salesman's goal is to make the sale.
Could you tell me what the requirements, from the bank's perspective, are when we identify a money service business (MSB)? Would this eliminate the necessity to notify customers of limitation requirements on existing accounts? Could this make monitoring of any of the savings accounts possibly unnecessary? Could you continue to pay interest on this type of account? Or would this be considered a total violation of Reg. D?
This seems to be the year for BSA enforcement cases.
Money Service Businesses have to bank somewhere. If that somewhere is your bank, you should be aware of the MSB requirements for registering with FinCEN.
Question: We were criticized by our examiner because we did not register a money service business customer with FinCEN.