Financial Crimes Enforcement Network FinCEN

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Financial Crimes Enforcement NetworkFinCEN

• Federal Regulation of
• Money Services Businesses
• Anna Fotias
• Senior Regulatory Outreach Specialist
• Regulatory Policy and Programs Division
• 703-905-3806
• E-Mail Address Anna.Fotias_at_fincen.gov

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Why are MSBs Regulated?

• To become part of a nation-wide effort joining
  banks, casinos, securities brokers and dealers
  and others to prevent our financial systems
  from being used for illegal purposes.
• To help the government fight money laundering,
  terrorist financing and other financial crimes.
  
• To file reports and keep records of financial
  activities that provide a money trail for law
  enforcement investigators to follow.

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Registration De-Registration

• MSB Registration List updated and posted
  monthly on FinCEN website MSB.GOV
  
• FinCEN Guidance on website Registration/Deregistr
  ation FIN-2006-G006 (February 3, 2006)
  

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Anti-Money Laundering (AML) Compliance Program31
CFR 103.125

• AML Programs must
• Be in writing
• Include policies, procedures and internal
  controls
  
• Designate compliance officer
• Provide ongoing education/training
• Provide periodic, independent review/audit

All MSBs must develop and implement anAML
program by 90-days afterMSB is established
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How Does an MSB Comply?

• Register and Keep Agent List
• File SARs and CTRs, as required
• Keep Records of
• Cash Sales of Monetary Instruments (3,000 -
  10,000, inclusive)
  
• Funds Transfers (3,000 or more)
• Currency Exchanges (more than 1,000)
• Implement and Maintain an Anti-Money Laundering
  Compliance Program
  

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FFIEC 2007 BSA/AML EXAM MANUAL

• Federal Financial Institutions Examination
  Council (FFIEC) EXAM MANUAL (8/24/07) on FFIEC
  BSA/AML InfoBase website ffiec.gov/bsa_aml_infoba
  se/default.htm
• Note Providing Banking Services to MSBs
  (pages 276-282)
  

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IRS-IRM Chapter 9

• Manual for IRS Examiners Chapter 9
• Exam Techniques for BSA Industries
• Located on Internet _at_ IRS.GOV
• Select tab at top Tax Professionals
• Select Electronic Reading Room on Left Side
• IRM is listed on Right Side under Admin. Manuals
  Instructions
  
• Go to Part 4 Examining Process
• Go to 4.26 Bank Secrecy Act
• Go to 4.26.9 Examination Techniques for BSA
  Industries

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Where to get HELP !!!

• BSA forms/guidance
• www.msb.gov or www.fincen.gov
• BSA Forms - IRS Forms Distribution 800-829-3676
• Free MSB educational materials 800-386-6329

• Answers to questions
• FinCEN Regulatory Helpline 800-949-2732
• IRS - DCC Hotline [phone]