A group of companies involved in money services businesses, working with other interested parties including the American Bankers Association, today issued a best-practices guide for MSBs related to anti-money laundering and Bank Secrecy Act compliance.
MSBs are categorized as nonbank financial institutions, such as credit card systems, investment advisers, mutual funds, insurance companies, loan providers or finance companies. The best practices also include guidance for virtual currency and fintech companies, recognizing their integration into the financial services landscape and accompanying AML obligations.
The goal of the document is to help MSBs develop a compliance program to meet applicable requirements established by the Treasury Department’s Financial Crimes Enforcement Network. The guide is also intended to help MSBs open and retain banking relationships while also helping banks understand the business operations of MSBs and the commensurate risks. “Overall, these industry best practices should enable an MSB to develop and maintain an AML program to meet its obligation to detect, report and prevent money laundering and terrorist financing,” the guide’s authors wrote.