Best Practices for US Money Services Businesses

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MSBA has made public the results of a work In collaboration with leading financial organizations, MSBA announced a set of standards for US MSBs focused on: 

  

  • Safeguard financial systems
  • Address the callenge of forced derisking
  • Implementing FinCEN regulatory obligations

By: Kathy Tomasofsky

Executive Director, MSBA

Considering the fast advancement of financial innovation, the MSB Best Practices address how the payments industry protects the US financial system and consumers from money launderers, sanctions evaders, human traffickers, and fraudsters. They serve as a blueprint for established firms and new market entrants in managing risks so that consumers can securely and safely send and receive their hard-earned funds. 

In addition to assisting MSBs with approaching general regulatory requirements, banks and other financial institutions will be encouraged to engage in relationships with MSBs confidently. Their AML compliance programs are consistent with these standards and best practices. Banks and other financial institutions can leverage these best practices to address the regulatory expectations of their regulators, as described in the FFIEC BSA/AML Examination Manual.

The MSBA collaborated with The Electronic Transactions Association (ETA); INFiN, a Financial Services Alliance; and The Money Services Round Table (TMSRT) to create a comprehensive template for companies that represent the full range of MSBs.

This extensive cross-sector effort focused on two goals: First, to refine MSB AML/CFT compliance standards to safeguard financial systems, and second, to address the challenge of forced de-risking (the cancellation of banking services to entire business lines, rather than on a case-by-case basis).

These Best Practices reflect the MSB industry’s commitment to ensuring a safe and compliant environment. The MSBA is thankful to all the regulatory and law enforcement agencies, financial institutions, money services businesses, trade organizations, banks, public policy bodies, and numerous individuals that provided feedback on this document and help the industry-driven effort to improve compliance with AML/CFT regulations.

Read complete report – https://www.msbassociation.org/media/MSB-Best-Practices-v28-04.27.22-FINAL.pdf

 

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