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MSB Compliance Officer

FinCEN Guidance
On March 11, 2016, FinCEN issued guidance to Money Service…

MSB Compliance Officer <MSBCO@YourCo.Com>
Re: FinCEN Guidance

On March 11, 2016, FinCEN issued guidance to Money Service Businesses (MSBs) reiterating that:

Both MSB Principals and MSB Agents must conduct periodic risk assessments and must tailor their AML programs to their risk profile.

FinCEN expects MSB principals and agents to tailor their AML programs to reflect the risks associated with their particular business services, clients, size, locations, and circumstances. AML risks can be jurisdictional, product-related, service-related, or client-related.

FinCEN says MSB Principals must:

  • “Develop and implement risk-based policies, procedures, and internal controls that ensure adequate ongoing monitoring of agent activity…”
  • “Evaluate on an ongoing basis the operations of agents, and monitor for variations in those operations…”
  • “Evaluate agents’ implementation of [AML] policies, procedures, and controls…”

About enforcement, FinCEN says:

FinCEN is working closely with its delegated examiner, the Internal Revenue Service’s Small Business/Self-Employed Division, as well as with state regulators, to better coordinate compliance and enforcement efforts and maximize resources. One area of focus is how effectively principal MSBs are currently monitoring their agents. FinCEN expects a principal to have information readily available to demonstrate that it has effectively developed and implemented risk-based policies, procedures, and internal controls to ensure adequate ongoing monitoring of agent activity. [Emphasis added.]

Consistent with RegSmart’s philosophy of systematic governance and risk assessment, RegSmart has developed the most complete, advanced, cloud-based system of BSA compliance for MSBs.

With RegSmart-MSB, MSB Principals can continually monitor their Agents’ BSA risk and the Agent’s ability and willingness to comply the MSB risk assessment and periodic audit/review requirements.

RegSmart-MSB incorporates a complete MSB Risk Assessment with comprehensive periodic review/audit.

It sounds complicated, but we bet you’ll be surprised.  Based on RegSmart’s philosophy of systematic data collection and storage, risk assessment, and simple, concise reporting, RegSmart-MSB’s wizard walks the MSB Agent though a list of plain-language questions that yield a complete risk profile of the Agent (down to the specific higher risk locations, products, services, and customers) and a complete periodic BSA and OFAC review/audit fully compliant with FFIEC’s BSA Manual for MSBs.

Consistent with RegSmart’s philosophy of collecting a complete data set and changing only what’s necessary thereafter, after the first time though RegSmart-MSB, most of the work is done forever.  The Agent need only update RegSmart-MSB when operations, regulations, or the threat landscape changes.

And one more thing: For MSB Principals, RegSmart will design and build a custom Agent Management Dashboard that will allow the Principal to see the status of every Agent’s BSA risk and compliance profile.  It’s the power of information, at your fingertips: RegSmart-MSB.