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We help you understand AML Compliance Regulations
What the federal regulations that I need to be aware of?
The federal Bank Secrecy Act (BSA) requires that all financial institutions, including check cashers, in the United States help U.S. government agencies and law enforcement preventing money laundering. To do this, the BSA requires that MSBs adhere to strict record keeping and reporting requirements. This includes:
- Filing Currency Transaction Reports (“CTRs”) for all cash transactions in excess of $10,000
- File Suspicious Activity Reports (“SARs”) for transactions involving suspected Money Laundering.
- Maintaining records for all transactions of $3,000 to $10,000
- Maintaining records of certain transactions of $3,000 or more
- Maintaining records of currency exchanges (e.g., foreign to U.S.) in excess of $1,000
- Keeping copies of all reports and records for a minimum of 5 years.
Do I need to register my business if I am cashing checks? If so, how?
All business that cash checks are considered Money Service Businesses (MBSs) and must register with the Financial Crimes Enforcement Network (“FinCEN”). Furthermore, they must implement Anti-Money Laundering (“AML”) programs to help prevent financial crime through their businesses. These programs must include:
- Written AML Policies and Procedures
- A Compliance Officer to administer the AML program
- An Employee Training Program, and
- Periodic Independent Review of the AML program to ensure that it is properly functioning.
What are compliance audits and who can conduct them?
All MSBs are subject to IRS audits to ensure compliance of the BSA laws and regulations. State banking examiners in many states also examine their MSBs for BSA compliance.
Failure to adhere to state and federal compliance laws can lead to very serious penalties and loss of critical banking relationships.