Banks Get New Online Resource to Help MSB Customers Meet Legal Obligations, Manage Risk
MoneyServicesBusiness.com assists money services businesses with Bank Secrecy Act / Anti-Money Laundering Compliance and Risk Management.Atlanta, GA 2/26/2007 (TransWorldNews)
Fear about perceived high risk in working with money services businesses (MSBs) has lead many banks to walk away from banking MSBs during the past few years. Frustration from an inability to obtain necessary proof of basic compliance with the Bank Secrecy Act has contributed to the closing of even more banking relationships for MSBs. Banks now have a new resource to assist them in helping MSBs comply with the Bank Secrecy Act and manage risk - www.MoneyServicesBusiness.com. The website provides members with compliance guides, news, experts' advice, and peer forums to avoid potential civil and criminal penalties, meet ongoing training requirements, and retain a good banking relationship. Membership is free.
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.
“Many banks don’t understand how MSBs operate and assume that appropriate steps to manage risk are lacking. Difficulty in promptly obtaining basic documentation proving compliance with the Bank Secrecy Act and with state regulations often reinforces that perception,” 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 better manage risk, more effectively communicate their compliance efforts to their bankers, avoid potential fines and jail, and maintain their vital banking relationship without which they can’t conduct business.”
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, effective 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.
About MSB Compliance, Inc.
MSB Compliance, Inc., provides regulatory compliance products and services to money services businesses and to their banking partners. Established in 2006 by Jay Postma, President, the company offers written Bank Secrecy Act compliance documentation, business compliance templates and forms, guidance and training materials, and consulting services to MSBs and their banking partners. The company also is the founder and lead sponsor of the MSB industry's Internet information portal www.MoneyServicesBusiness.com.
Postma has 25 years experience is the banking, financial services and software development industries. He has held positions at the Federal Reserve Bank of Atlanta's New Orleans and Atlanta branches, MCI Telecommunications, Towne Services, and El Banco Financial Corporation. He then served as Vice President, Division Operations Manager, and Bank Secrecy Act Officer with Flag Bank in Atlanta. He is a graduate of the Georgia Institute of Technology and a Certified Anti-Money Laundering Specialist (CAMS).
Contact:
Jay Postma, President
MSB Compliance, Inc.
www.msbcomplianceinc.com