Money Laundering, Terrorism and Financial Institutions - USA Patriot Act Monitor

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3/10/2006 Obtaining Banking Services Still Difficult for MSBs
In April 2005, as reported in the May 2005 Monitor, FinCEN issued several releases trying to resolve the difficulty that money services businesses were having in opening and maintaining accounts with banks.  Obtaining banking services continues to be a problem for MSBs, and FinCEN has issued an advance notice of proposed rulemaking (71 FR 12308)  seeking information on what requirements banks are imposing on MSBs for opening and maintaining accounts, on instances where banks have refused to provide services despite the willingness of MSBs to provide requested information, and on what additional guidance might be advisable to assure that MSBs receive banking services while banks receive adequate protection.  FinCEN is probably afraid that MSBs are correct in arguing that if certain communities cannot obtain the services of MSBs, they are more likely to use informal and unregulated money transfer systems.  Written comments are to be submitted by May 9, 2006.

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