Has your institution made a business decision to not bank MSBs? or to close MSB accounts as you identify them?

I've heard of some banks that have publicly stated they will not bank MSBs.

I've also heard some banks publicly state "We have no MSBs in our customer base."

Where do you stand?

We do not bank MSBs...Tulsa, OK here

Besides it being a management decision to not bank MSBs, how do you know that you do not have MSBs operating from established bank accounts at your institution?

(Does your system flag these, do you have a process, or do you just shut them down when you become aware of them?)

Through the Customer Risk Rating process. We assigned NAICS codes to all business accounts (loans too) and then as we found customers that conducted transactions or provided services that, by definition, classified these companies or individuals as an MSB - we asked them to close their account. We simply don't have the staff or the stomach for trying to monitor these accounts.

In addition to reviewing all business accounts during the NAICS coding process, when I conduct BSA training (classroom style) I explain to the employees what the definition of an MSB is and why the bank has chosen not to bank them. Several times it has been an employee that has pointed out that a business is operating as an MSB which is helpful b/c you can't always tell by way the account is titled.