If we have a customer who refuses to register with FinCen we will file a SAR. How often must we do this? Quarterly, Monthly?? Thanks in advance for your reply.

You treat it as continuous suspicious activity and file every 90-days. However, the bank should assess the risks and may wish to close the account rather than bank an unregistered MSB. In my experience - most of the MSB accounts that I have reviewed are money losers for the bank anyway.

Mr. Carey has answered your question and gratuitously suggested you consider terminating the relationship. I want to agree with his suggestion and uncover the source for our collective wisdom. From the Interagency Interpretive Guidance on MSBs:

Finally, banking organizations are not expected to terminate existing accounts of money services businesses based solely on the discovery that the customer is a money services business that has failed to comply with licensing and registration requirements (although continuing non-compliance by the money services business may be an indicator of heightened risk). There is no requirement in the Bank Secrecy Act regulations that abanking organization must close an account that is the subject of a suspicious activity report. The decision to maintain or close an account should be made by a banking organization’s management under standards and guidelines approved by its board of directors. However, if an account is involved in a suspicious or potentially illegal transaction, the banking organization should examine the status and history of the account thoroughly and should determine whether or not the institution is comfortable maintaining the account.

The Guidance contains the most unequivocal direction to file a SAR (unregistered MSB) you will ever find. The mention of the possibility that you should close the account is a little more fuzzy, but they had just gone through a public relations disaster and weren't anxious to fan the embers. In regulatoryspeak, they are suggesting that keeping the account open is indefensible, but it's your choice.