Can anyone point me in the direction to where I might find more about money penalties for businesses operating as unregistered MSBs? We're trying to convince one of our customers to register, and we're in need of some leverage, short of closing the account. Thank you.

I remember a MSB in Florida was assessed penalties and so was a liquor store somewhere - anyone else remember ?

Good luck !

This guidance gives a good overview of why and how financial institutions must gather this information.

I believe there are some cases cited in the footnotes of the guidance, which may point you in the right direction as far as the money penalties.

Hope this helps...
http://www.fincen.gov/fincenadv04262005.pdf

Thank you

Below is a link that I ran across when I was doing some research on MSBs. I forwarded it to our branch managers as an information link they may want to provide to some of our MSB customers who do not know where to go to get straight forward information. It has some helpful information for free along with training, forms and other information that can be purchased by the MSB.
It might be something along with FinCEN's link that could make the customer understand that it's not what you want them to do, it's the LAW and that are consequences for not abiding by them!

http://www.moneyservicesbusiness.com/site.php/spgs/read/definition_of_an_msb/