Setting Up a Money Service Business With FinCEN
When it comes to money service businesses you’ll find that they are actually very well scrutinized and regulated. In fact, 49 out of 50 states have not only federal law regulations but statutes as well.
This type of business is one that provides different types of financial services, from money orders and traveler’s checks, to exchanging currency, money transmission, and check cashing. And there are plenty of other money related services that may be provided as well. But overall, it’s important to know that these facilities are highly regulated by the Bank Secrecy Act, administered by the Financial Crimes Enforcement Network under the United States Department of the Treasury.
These regulations, as well as the Patriot Act, require registration for all MSBs, and also create rules related to reporting, anti-money laundering, and record keeping. Even more, those 49 states have additional regulations that are very similar to federal requirements. The most important thing for someone looking to set up this type of business is to work with a compliance attorney.
So, just what is required of these facilities? The Banking Secrecy Act requires registration with FinCen. It must then be filed with the BSA within 180 days of establishing the business.
In order to register the business needs a great deal of information. This includes a name and the fees, but it also includes statements of financial institutions and bank accounts where transactions can happen, types of business the institution will conduct, the ownership of the business, the branches or agents operating, and more. This is why it’s important to go through the registration process very carefully and that you provide all of the necessary information the first time around.