The current rules amended in 1999 by the Financial Crimes Enforcement Network revised the regulatory definitions of certain non-bank financial institutions for purposes of the Bank Secrecy Act (BSA) and grouped the definitions into a separate category of financial institution called “money services businesses” or “MSBs.” A business that meets one or more of the definitions of a type of MSB (as currently defined) is an MSB and must comply with BSA requirements applicable to it as an MSB, as a financial institution and as a specific type of MSB.
The capacities in which a business might be acting that could bring it within the definition of an MSB are:
| Product or Service | Capacity (Type of MSB) |
|---|---|
| Money Orders | Issuer of money orders; Seller of money orders; Redeemer of money orders |
| Traveler’s Checks | Issuer of traveler’s checks; Seller of traveler’s checks; Redeemer of traveler’s checks |
| Money Transmission | Money transmitter |
| Check Cashing | Check casher |
| Currency Exchange | Dealer in foreign exchange |
| Currency Dealing | Dealer in foreign exchange |
| Prepaid Access | Provider of Prepaid Access; Seller of Prepaid Access |
The www.fincen.gov website contains other information that you may find useful. We suggest that you visit each of the sections of www.fincen.gov to gain a better understanding of the BSA and how it may affect you and your business. (Click Here)
