Regulators urge banks to keep doing business with money service businesses

Northwestern Financial Review, May 1-May 14, 2005

Money service businesses are losing access to banking services as a result of concerns about regulatory scrutiny, according to the Financial Crimes Enforcement Network and bank regulatory agencies. In a joint statement, they said concerns typically stem from a misperception of the requirements of the Bank Secrecy Act.

The agencies said BSA does not require, and neither do they expect, banks to serve as de facto regulators of money service businesses. Guidance on account relationships with money service businesses will be issued soon by FinCEN and the federal banking agencies outlining further compliance expectations for banks.