3FinCEN has defined the BSA te
rm ―financial institution‖ to include
a category that includes: a dealer in foreign exchange; a
check casher; an issuer, seller, or redeemer of traveler‘s checks, money orders, or stored
value; and money transmitter.
FinCEN is authorized to deem any business engaged inan activity determined by regulation to be an activity similar to, related to, or a substitute
for these activities a ―financial institution.‖
FinCEN has issued regulations implementing the recordkeeping, reporting, andother requirements of the BSA. MSBs are required with some exceptions to: (1) establishwritten anti-money laundering (AML) programs that are reasonably designed to preventthe MSB from being used to facilitate money laundering and the financing of terroristactivities;
(2) file Currency Transaction Reports (―CTRs‖)
and Suspicious Activity
and (3) maintain certain records, including records relating to thepurchase of certain monetary instruments with currency,
relating to transactions bydealers in foreign exchange,
and relating to certain transmittals of funds.
Most typesof MSBs are required to register with FinCEN.
On May 22, 2009, the President signed the Credit Card Accountability
Responsibility and Disclosure (CARD) Act of 2009 (―CARD Act‖).
Section 503 of the
CARD Act required the issuance of ―
regulations in final form implementing the Bank
―MSB‖ is a term FinCEN created that refers to certain non
-bank financial institutions that offer specificservices (often in combination) and are without a federal functional regulator.
31 CFR 1010.100(ff) implementing
31 U.S.C. 5312(a)(2)(J), (K), (R) and (V).
31 U.S.C. 5312(a)(2)(Y).
See 31 CFR 1022.210.
See 31 CFR 1010.311.
See 31 CFR 1022.320. Check cashers and transactions solely involving the issuance, sale or redemptionof stored value are not covered by the SAR requirement. See 31 CFR 1022.320(a)(1) and (a)(5).
See 31 CFR 1010.415.
See 31 CFR 1022.410
See 31 CFR 1010.410(e)-(f).
See 31 CFR 1022.380.
P.L. 111-24 (May 22, 2009), 123 Stat. 1734.