MSBs are financial institutions under the law, subject to regulatory oversight by the Internal Revenue Service and various state banking departments. The financial services they provide may include check cashing, money transfer and bill payment, prepaid stored value cards, money orders, travelers' checks, currency exchange and tax preparation. Most MSBs provide such services to supplement their primary products and services; such businesses include convenience, grocery, liquor and hardware stores, among others. Like banks and credit unions, MSBs must adhere to the Bank Secrecy Act in order to protect their business, customers, communities and the nation from criminal money laundering and terrorist financing activities.
"Keeping up with the latest compliance requirements is a headache for the largest financial institutions, but it's a total nightmare for the small and medium-sized money services businesses," said Jay Postma, a former bank executive and Bank Secrecy Act Officer who founded MSB Compliance. "With the information and forums we provide online, our members can take steps to avoid fines and jail, better manage risk, maintain their vital banking relationships, and stay in business. We've demystified how to comply with the Bank Secrecy Act."
The Financial Crimes Enforcement Network (FinCEN) has fined a number of MSBs for violations of the Bank Secrecy Act. Typically, fined money services businesses did not register with FinCEN in a timely manner and failed to establish and implement an adequate anti-money laundering program. "The very few MSBs that recklessly disregard the law cast a shadow of illegitimacy over similar, law-abiding businesses and such conduct will earn them severe penalties," said FinCEN Director Robert W. Werner.
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