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Ask The Experts – Why Does My Bank Request a Third Party Independent Review Every Year?

Ask The Experts – Why Does My Bank Request a Third Party Independent Review Every Year?

Posted on: August 19th, 2021 by Julie

Most banks will request an Independent Review from their Money Services Business clients annually. Here is the reason why…

Banks, just like check cashers, money transmitters and other MSBs, are audited frequently. However, banks are audited by government entities.

GOVERNMENT ENTITIES AUDITING BANKS

  • Office of the Comptroller of the Currency (OCC)
  • Federal Deposit Insurance Corporation (FDIC)
  • Federal Reserve System (FRS)

As part of the banks due diligence process, it is imperative that they understand the activities of their clients, specifically those that involve cash or financial transactions. The purpose of reviewing MSBs annually is to ensure they are not facilitating money laundering or other suspicious transactions.

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RECOMMENDED READING

MSB Bank Audit Letter

MSB Bank Audit Letter

 

 

 

 

 

 


 

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About the Author

Kyle Oden
Kyle Oden, CAMS
Director of Business Development

Over 13 years of experience consulting medium to large clients on their individual compliance needs. Proficient in working with Financial Service Centers, Money Transmitters, Cryptocurrency-related businesses, Casinos, Tribal Entities, Banks and Lenders. In my free time I enjoy drawing, being active and spending time with my family.

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