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The Long Arm Of Uncle Sam Just Got Longer/Note: Dinar Dealers are listed as MSBs

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gente

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Note: Dinar Dealers are listed as MSBs

FinCEN's latest ruling suggests a foreign money service businesses "MSB" may now be subject to US regulations AND CRIMINAL PENALTIES ...
February 16, 2012

The Long Arm Of Uncle Sam Just Got Longer


This one's hot off the presses. Just yesterday, our friends at the Financial Crimes Enforcement Network (FinCEN) issued a press release on its latest ruling related to foreign 'money service businesses (MSBs).'

An MSB is a private company that provides certain financial services like check cashing, money orders, title pawn, payday loans, travelers' checks, prepaid stored value cards, tax refund payments, etc. Frequently, traditional MSB clients tended to be individuals without bank accounts or access to credit.

But increasingly, the US government is looking at companies engaged in electronic payments, crowdsourced funding, and even microcredit finance as money service businesses. The implication? They should all be regulated.

Even if they're not even US companies. That's right. FinCEN's latest ruling suggests a foreign MSB may now be subject to US regulations AND CRIMINAL PENALTIES "even if none of its agents, agencies, branches or offices are physically located in the United States."


windreader1


HMMM--wonder if this is the reason Ali sold his UK branch?

MrsCK


good point mom but I do think Ali was registered with the UST. I know he supplied other currency's to banks in the USA.

windreader1


Yes he was registered with the UST, however as I recall from earlier research, foreign currency dealers were exempt from the regulations that governed other financial institutions if all they did was sell currency. That changed in March/2011 when the new regulations became effective. Dealers were required to start keeping detailed records on currency transactions. It has always been my opinion that Ali got around this requirement by moving his operation overseas. Here is the full article. Windreader1


FIN-2012-A001 Issued: February 15, 2012 Subject: Foreign-Located Money Services Businesses

On July 21, 2011, the Financial Crimes Enforcement Network (FinCEN) published in the Federal Register a final rule on definitions and other regulations relating to money services businesses (Final Rule).1 The Final Rule amended the definition of "money services business" at 31 CFR 1010.100(ff). An entity may now qualify as a money services business (MSB) under the Bank Secrecy Act (BSA) regulations based on its activities within the United States, even if none of its agents, agencies, branches or offices are physically located in the United States. The Final Rule arose in part from the recognition that the Internet and other technological advances make it increasingly possible for persons to offer MSB services in the United States from foreign locations.2 FinCEN seeks to ensure that the BSA rules apply to all persons engaging in covered activities within the United States, regardless of the person's physical location.

FinCEN is issuing this Advisory to advise financial institutions of their obligations under the BSA when providing financial services to foreign-located MSBs. Financial institutions should note the following:
To qualify as an MSB, a person, wherever located, must do business, wholly or in substantial part within the United States , in one or more of the capacities listed in 31 CFR 1010.100(ff).3 Relevant factors include whether the foreign-located person, whether or not on a regular basis or as an organized or licensed business concern, is providing services to customers located in the United States.

Foreign-located MSBs are financial institutions under the BSA. With respect to their activities in the United States, foreign-located MSBs must comply with recordkeeping, reporting, and anti-money laundering (AML) program requirements under the BSA. They must also register with FinCEN.

Foreign-located MSBs are subject to the same civil and criminal penalties for violations of the BSA and its implementing regulations as MSBs with a physical presence in the United States.

The Final Rule requires each foreign-located MSB to appoint a person residing in the United States as an agent for service of legal process with respect to compliance with the BSA and its implementing regulations.

The Final Rule became effective on September 19, 2011. Reporting, recordkeeping and AML program requirements under the BSA now apply to foreign-located MSBs. However, registration and the appointment of an agent for service of legal process will not be required until the revised registration form is available, which is currently planned for release in early March 2012.

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