FAQ
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AML is an abbreviation for “anti-money laundering”. All money service businesses (MSBs) must develop and implement effective anti-money laundering programs that are designed to reasonably prevent MSBs from being used to facilitate money laundering and the financing of terrorist activities. You can try to do it yourself, but we recommend that you let us save you time, money and stress by creating a Custom AML Program for your business.
As part of the Bank Secrecy Act of 1970 (BSA) and USA PATRIOT Act of 2001, all money service businesses (MSB) are required to develop and implement effective anti-money laundering programs that are designed to reasonably prevent MSBs from being used to facilitate money laundering and the financing of terrorist activities. Financial institutions are required to ensure that their MSB customers have effective AML programs. If you do not have an AML Program, you will not be able to open a money service business account with a bank. You can try to do it yourself, but we recommend that you let us save you time, money and stress by creating a Custom AML Program for your business.
It depends on your financial institution. Some banks require Custom AML Compliance Programs for every location, while others require them for each corporate entity. We have experience with most of the major banks, so please contact us to help you assess your specific needs.
If you have received a letter like this from your bank, time is of the essence. If you do not already have one, you will need a Custom AML Compliance Program and/or Third Party Independent Review. It is important that you begin work on this matter immediately, to ensure your continued relationship with your bank. CCE has developed strong relationships with many banks and are confident we can satisfy your banks’ requirements. We have seen too many businesses lose their bank accounts as a result of not responding to these letters in a timely manner. Please contact us so that we can begin assisting you.
As part of the Bank Secrecy Act of 1970 (BSA) and USA PATRIOT Act of 2001, all money service businesses (MSB) are required to establish an independent audit function to test their AML Programs. Banks typically require MSBs to have a Third Party Independent Review to ensure that their AML Program’s policies, procedures, internal controls, record keeping, reporting functions and training are sufficient and identify any deficiencies. Third Party Reviews require a properly qualified professional, accounting firm, or outside consultant, like Capital Compliance Experts, to perform the review.
Yes. Capital Compliance Experts are CAMS certified professionals with extensive experience with and referrals from leading banks and auditors. Please contact us so that we can begin assisting you.
Yes. Capital Compliance Experts are CAMS certified professionals with extensive experience with and referrals from leading banks and auditors. Please contact us so that we can begin assisting you.
A CTR is a Currency Transaction Report. MSBs are required to file CTRs for each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such MSB which involves a transaction in currency of more than $10,000. A transaction includes multiple transactions totaling $10,000 or more in any one business day. CTRs must be filed electronically through the BSA E-Filing System. Please contact us to ensure that you are complying with the requirements for filing CTRs.
An SAR is a Suspicious Activity Report. Certain MSBs are required to file SARs for any transaction that is both suspicious and over $2,000. A transaction is suspicious if the MSB has reason to believe that the transaction involves funds from an illegal activity, is designed to evade requirements of the Bank Secrecy Act (BSA), or serves no apparent lawful business. SARs must be filed electronically through the BSA E-Filing System. Please contact us to ensure that you are complying with the requirements for filing SARs.
All CTRs and SARs must be filed electronically through FinCENs BSA E-Filing System. CTRs must be filed within 15 days of the transaction date, while SARs must be filed within 30 days of the transaction date. Many check cashing software systems include CTR/SAR filing options. Please contact us to learn more.
If you are asking the question, you probably are an MSB. The definitions of a type of MSB are:
As an MSB you must comply with the BSA requirements applicable to financial institutions as well as to each of the specific requirements applicable to MSBs. Please contact us for assistance in assessing your requirements.
All employees must be trained to understand their requirements in regard to the Bank Secrecy Act, including customer identification and verification procedures, detection and reporting of suspicious transaction activity, understanding structured transactions, Currency Transaction Reporting and thresholds, and additional record keeping requirements regarding money transfer and money order transactions. AML Training is an integral part of a Custom AML Compliance Program. Please contact us for assistance in creating an effective AML Program, including training for your business.
A Compliance Officer is an individual appointed by a company to: monitor the compliance of AML obligations; oversee the communication and training for employees; ensure that the company keeps and maintains all required AML records; be fully knowledgeable about the BSA and all related regulations; and understand the company’s services and products and the potential money laundering and terrorist financing risks associated with those activities.
A Risk Assessment is important and will provide a clear basis for developing the MSB’s policies and procedures. Each MSB should identify and assess the risks posed by the location and size of the business, and take into consideration the nature and volume of the financial services provided by the money services business. Please contact us for additional information regarding your need for a Third Party Independent Review.
All MSBs must be registered with FinCEN, and renew their registration every two years. Changes in ownership require a new registration. Criminal and civil penalties may be imposed for a violation of this registration requirement. A business that never conducts transactions over $1,000 for one person during a single business day is not required to register as an MSB. Business licensing and permit requirements are dependent on the state laws of your business location. Please contact us to assess your licensing and registration requirements.
Registration of an MSB is the responsibility of the owner or controlling person of the MSB, and must be filed within 180 days of the establishment date of the business. MSB Registration must be filed electronically through the BSA E-Filing System. Please contact us for assistance in the registration process or any of your compliance needs.
Yes. Financial Service Centers that meet one or more of the definitions of a type of “Money Services Business” (MSB) (e.g., check cashing) are designated as MSBs and must comply with the federal Bank Secrecy Act requirements applicable to it. MSBs are subject to examination by the Internal Revenue Service. More information about the federal regulation of Financial Service Centers can be found at www.msb.gov. At the state level, Financial Service Centers must also adhere to state laws and regulations in the majority of jurisdictions, including a requirement that they be licensed or registered. Financial Service Centers that offer payday loans must also comply with additional regulations, mainly at the state level, typically by a state’s department of banking or similar agency. Please contact us for help if you have been contacted by the IRS, or need assistance to comply with your state and federal requirements.
