If you cash checks, transfer money, sell money orders, traveler's checks or stored value products, you may be required by law to register with the federal government and adopt an anti-money laundering compliance program within 90 days.

In 2002, pursuant to Section 352 of the USA PATRIOT Act, Financial Crimes Enforcement Network (FinCEN) issued final regulations to require that all Money Services Businesses (MSBs) to have an effective compliance program to prevent the MSB from being used to facilitate money laundering and the financing of terrorist activities.

IRS examiners conduct compliance examinations and will be looking at how effectively your business complies with the anti money laundering program requirements. Failure to comply can result in fines up to $5000 per violation and/or imprisonment.

Our Anti Money Laundering compliance manual has the procedures, resolutions, certificates and forms your MSB will need to comply with the Bank Secrecy Act. It contains information on: 

• Registering (with FinCEN) your Money Services Business

• Maintain your agents lists (if you have any agents)

• When and where to file Currency Transaction Reports (CTRs)

• When and where to file Suspicious Activity Reports (SARs)

• What information is needed to maintain a Money Instrument Log

• Certificate of Adoption of Compliance Program

• Designation of Compliance Officer

• Certification of MSB Employee Training

• Independent Review checklist

• Certificate of Independent Review Compliance

We can assist you in operating within the mandatory money service business guidelines by creating a basic anti money laundering compliance program and policy manual for your MSB.

FAQs Regarding Anti-Money Laundering Compliance Program for Money Services Businesses

When did this regulation apply to Money Service Businesses?
On October 26, 2001, the President signed into law the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001. Effective April 24, 2002 an amendment now requires Money Service Businesses (MSBs) to establish anti-money laundering compliance programs to help prevent, detect, and prosecute international money laundering and the financing of terrorism.

What is Money Laundering?
Money is “laundered” to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking. Money laundering conceals the source of illegal proceeds so that the money can be used without detection of its criminal source.

Money Services Businesses (MSB)s have been both witting and unwitting participants in laundering activities. MSBs have been major targets in laundering operations because they provide a variety of services such as money orders, traveler’s checks, money transfers, check cashing, currency exchange, and stored value services which can be used to conceal the source of illicit proceeds.

To protect themselves, and to support national and international efforts against financial crime, it is important that MSBs know how money laundering schemes can operate. This Anti Money Laundering Compliance Program (AML Compliance Program) contains the basic requirements needed for the MSB to be compliant with federal regulations.

What is a Money Services Business (MSB)?
A business is considered an Money Services Business (MSB) if the business offers one or more of the following services:

• money orders

• traveler’s checks

• check cashing

• currency exchange

• stored value products

• money transfer services

How do Money Services Businesses (MSBs) register?
Each MSB must register with the Financial Crimes Enforcement Network (FinCEN). However, not all MSBs are required to register. For example, if you are an MSB solely because you are an agent of another MSB, you are not required to register.  Please Note: Registration with FinCEN does not satisfy any state or local licensing or registration requirement.

What are the penalties for non-compliant MSBs?
MSBs must register with FinCEN within 180 days after date the business is established. Any MSB who fails to comply with the requirements to register, keep records, and/or maintain MSB agent lists may be liable for civil penalties of up to $5,000 for each violation. Failure to comply also may subject a person to criminal penalties, which may include imprisonment for up to five (5) years and criminal fines.

What is an Anti Money Laundering (AML) Compliance Program?
Each MSB is required by law to have an effective anti-money laundering (AML) compliance program within 90 days from the day the MSB business started.

An effective AML compliance program is one designed to prevent the MSB from being used to facilitate money laundering. Each AML compliance program must be in writing and must at a minimum:

• Incorporate policies, procedures and internal controls reasonably designed to assure compliance with the Bank Secrecy Act (BCA).

• Designate a compliance officer responsible for day-to-day compliance with the BSA and AML program

• Provide education and training to appropriate personnel concerning their responsibilities under the program

• Provide for independent review to monitor and maintain an adequate AML program.

What are the Bank Secrecy Act (BCS) Regulations?
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, administers and issues regulations pursuant to the Bank Secrecy Act (BSA). Here is a summary of these regulations.

• Each business that meets the definition of an MSB must register with FinCEN.

• MSBs that are required to register must prepare and maintain a list of their agents, if any.

• File Suspicious Activity Reports (SARs) when any suspicious activity occur.

• Required to develop and implement an AML compliance program 

• File Currency Transaction Reports (CTRs) on transactions  more than $10,000 on any one day for the same person.

• Must maintain information on the sale of monetary instruments from $3,000 to $10,000, inclusive.

• Must maintain information for funds transfers of $3,000 or more, regardless of the method of payment.

• Must maintain records for each currency exchange in excess of $1,000.

• BSA records must be retained for a period of five years.

What is the OFAC list?
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issues the Specially Designated Nationals and Blocked Entities List (SDN List). OFAC regulations require businesses to identify and freeze the assets of targeted countries, terrorists, drug cartels and other specially designated persons.

Who is American Credit House, Inc?
American Credit House, Inc is a Georgia corporation since 1996, offers payment processing services to MSBs such as electronic check guarantee, credit and debit card processing and check cashing systems. Our management team has a combined 40 years experience in payment processing and data systems service management. We can assist you in operating within the mandatory money service business guidelines by creating a basic anti money laundering compliance program and policy manual for your MSB.