On May 12, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department, released a proposed regulation revising a portion of the Bank Secrecy Act (BSA) with respect to which entities are money services businesses (MSBs) for purposes of the BSA’s definitions.
The proposal is intended to: (i) ensure that certain foreign-located MSBs with a presence in the United States are subject to the BSA rules; (ii) update the MSB definitions to reflect prior agency guidance and rulings, current business operations and evolving technologies; and (iii) modify the definition of “stored value” so that issuers of stored value and sellers or redeemers of stored value are in the same category. The proposal also notes that stored value products present a complex myriad of regulatory issues and that FinCEN will be releasing a proposal regarding such products at a later date.
According to the release, the “proposed changes are intended to more clearly delineate the scope of entities regulated as MSBs, so that determining which entities are obligated to comply will be more straightforward and predictable.”
Comments are due on or before September 9.