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

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4/29/2004 USA PATRIOT Act Monitor News Release: Foreign Exchanger With U.S. Bank Account Not Required To Register as MSB

FinCEN Ruling 2004-1, Definition of Money Services Business (Foreign-Located Exchanger With U.S. Bank Account), considers whether a foreign currency exchanger with its principal place of business in a foreign country must register as a Money Services Business under 31 CFR 103.41. The exchanger dies not have a physical presence in the U.S., but maintains an account with a U.S. financial institution upon which it makes deposits and purchases negotiable instruments denominated in U.S. dollars. The foreign exchanger has a policy of not transmitting U.S. dollars in any form to the U.S. for customers. It serves as a local intermediary in the foreign country for MSBs located and operated in the U.S., but does not conduct transactions with them in the U.S. These MSBs with a U.S. presence would have to register, but the foreign exchanger with only a bank account is not required to do so, according to the ruling. The ruling will be discussed in the next issue of the Monitor.


The USA PATRIOT Act Monitor and the news releases prepared by the Monitor staff are services of the Civic Research Institute, publisher of Money Laundering, Terrorism, and Financial Institutions, by Raymond Banoun and John Ensminger. Contact and subscription information may be obtained at http://www.civicresearchinstitute.com/moneylaundering or by calling the Civic Research Institute at 609-683-4450 (fax: 609-683-7291).

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