Topic: Money Services Businesses (MSBs)
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Has a determination been made as to when Thillens became a money services business (MSB)? We read that the requirement to file currency transaction reports (CTRs) related to Thillens transactions was triggered when they became an MSB, and we would like to know when this occurred to determine when the duty to file CTRs technically arose.
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We recommend contacting Thillens directly to inquire as to the date it became an MSB. According to FinCEN’s MSB Registrant Search page, Thillens, Inc. renewed its MSB registration on December 29, 2020, and its MSB activities are listed as “money transmitter, other.” An entity called Thillens Armored Services, LLC appears to have filed its initial…
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We are aware of the recent FinCEN administrative ruling denying the IBA’s request for relief from currency transaction report (CTR) filing requirements for cash shipments executed by Thillens. We use Brinks to transport our cash shipments to and from our Federal Reserve account, and Brinks does not withdraw cash from its own bank accounts to fulfill our cash orders. Is Brinks a money services business (MSB), and do we need to file CTRs in relation to our cash orders fulfilled by Brinks?
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No, we do not believe Brinks would be considered an MSB based on the services you describe, and we do not believe you need to file CTRs in relation to your cash orders fulfilled to and from your bank’s Federal Reserve account by Brinks. Under FinCEN’s regulations, MSBs include money transmitters that transport currency, funds,…
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Are we required to file currency transaction reports (CTRs) for our own cash order shipments from Thillens, since they use their own account to satisfy our cash order requests?
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Yes, we recommend filing CTRs for cash shipments received from Thillens as directed in a recent administrative ruling from FinCEN. While the IBA argued in its request for relief that CTR filing requirements are unnecessary for a bank’s own cash shipments executed by Thillens, FinCEN unfortunately denied our request for relief. The ruling is somewhat…
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Thillens, a cash delivery service of ours, has sent us a notice that they are considered a money services business (MSB) and are recommending we file currency transaction reports (CTRs) for every cash shipment received from them over $10,000. They also recommended that we apply for an exception from FinCEN. Should we be filing CTRs on these business transactions?
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Yes, we recommend filing CTRs for cash shipments received from Thillens as directed in a recent administrative ruling from FinCEN. While the IBA argued in its request for relief that CTR filing requirements are unnecessary for a bank’s own cash shipments executed by Thillens, FinCEN unfortunately denied our request for relief. The ruling is somewhat…
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A potential customer would like to open a deposit account with our bank to accept deposits made at a Bitcoin ATM that they own. We believe the customer is a money services business (MSB), and it would use a security service (like Garda or Brinks) to pick up the cash from the Bitcoin ATM and count the funds, which would then be sent to the customer’s account at our bank via ACH. Funds would flow out of the account by ACH transfer to a Bitcoin exchange. What BSA/AML concerns should we be aware of when considering whether to do business with this customer?
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We believe your bank should confirm that the customer is registered as an MSB and is licensed as a money transmitter under Illinois law and review the BSA/AML requirements for providing banking services to MSBs generally, as well as federal and state guidance on MSBs that transmit convertible virtual currency (CVC) such as Bitcoin. The…
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We have a potential client that would like us to finance the purchase of a Bitcoin ATM. We would not process any transactions for the client through our system, since they do not have a deposit account with us, and our client will engage a third party money services business (MSB) to do all of the actual payment processing associated with the Bitcoin ATM. Under the Bank Secrecy Act (BSA), what type of monitoring would be required for this client, and would the answer change if we begin a deposit relationship with the client?
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We do not believe that lending funds to a borrower for the purpose of purchasing a Bitcoin ATM would require your bank to perform the BSA-related due diligence required for an MSB, unless your customer is an agent of the MSB doing the actual payment processing for the Bitcoin ATM. Whether your bank’s lending relationship…
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We have a customer that provides its customers with wire transfer services through Western Union. This customer does not have to register as a money services business (MSB) since it is an agent for an MSB. This customer requires its customers to pay cash to wire money and only sends wires of $800 at a time, although there is no limit on the number of times its customers can wire money in a day. Do we need to do a full risk assessment of this customer and create enhanced account reviews? Also, if this customer is a registered company on the New York Stock Exchange (NYSE), is it exempt from currency transaction report (CTR) filings?
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We believe this customer is an MSB, and as a result, you should undertake the necessary risk assessment and account reviews required for MSBs. However, this customer would be exempt from CTR filings if it is listed on the NYSE. MSBs include “money transmitters” which FinCEN defines as “[a] person that provides money transmission services,”…
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We have a potential customer that is a video gaming parlor. Our understanding is that the video game machines receive money used for gambling as ACH payments. Would this be a money transmitter subject to the requirements for a money services business?
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We do not believe that a video gaming establishment operating under Illinois law would meet the definition of “money transmitter,” unless the terminals or the establishment offer ancillary services that would trigger the money services business requirements. The definition of a money transmitter includes a business that accepts funds and transfers those funds to a…
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We have a potential customer who wants to open a business account for an investment club for virtual currency. The club currently has three members, and they would purchase virtual currency through Coinbase. Would the individual opening the account be considered an administrator of virtual currency? What if the individual opened a business account for the same purpose? Also, is the club a money services business (MSB)?
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We do not believe that the individual or business operating an investment club for virtual currency would be considered an “administrator” of virtual currency under FinCEN’s standards, but they might be an “exchanger” — which could qualify as an MSB, depending on the club’s activities. FinCEN has issued guidance defining an “administrator” of virtual currency…
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Does the $1,000 per person per day check cashing threshold in FinCEN’s definition of “money services business” apply to the customer or the store cashing the check? In other words, does a single customer of the check cashing store have to cash more than $1,000 in checks in a single day, or does the check cashing store need to cash more than $1,000 in checks from multiple customers in order for the store to meet FinCEN’s threshold for a check casher?
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The $1,000 dollar threshold applies to the check cashing store’s customer. FinCEN’s rule requires a business that provides check cashing services “in an amount greater than $1,000 for any person on any day in one or more transactions” to register as a money services business. In other words, if a store cashes checks for multiple…