All money services businesses (MSBs) are required to designate a Compliance Officer as identified in the five key compliance pillars compiled by the Bank Secrecy Act (BSA).
- Designation of a compliance officer
- Development of internal policies procedures and controls
- Ongoing relevant training of employees
- Independent testing and review
- Beneficial ownership
The classification of an MSB generally applies to businesses that are non-bank financial institutions and provide alternative money services.
EXAMPLES OF AN MSB:
- Currency dealers or exchangers
- Check cashers
- Issuers of traveler’s checks or money orders
- Sellers or redeemers of traveler’s checks or money orders
- Money transmitters
COMPLIANCE OFFICER DUTIES INCLUDE (but not limited 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 knowledgeable about the BSA and all related regulations
- Understand the company’s services and products
- Understand potential money laundering and terrorist financing risks
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Tags: AML, Anti Money Laundering, Bank Secrecy Act, BSA, BSA/AML Programs, Check Cashers, Compliance Employee Training, Compliance Officer, Financial Services, money orders, Money Services Business, Money Transmitters, MSB, Online Employee Training