FINCEN to redefine "Money Services Business"

[R.A. Hettinga]

<http://cryptome.org/0001/fincen051209.htm>

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[Federal Register: May 12, 2009 (Volume 74, Number 90)]
[Proposed Rules]
[Page 22129-22142]
 From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my09-15]

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DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506-AA97


Financial Crimes Enforcement Network; Amendment to the Bank
Secrecy Act Regulations--Definitions and Other Regulations Relating to
Money Services Businesses

AGENCY: Financial Crimes Enforcement Network (FinCEN), Department of
the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Financial Crimes Enforcement Network (``FinCEN''), a
bureau of the Department of the Treasury (``Treasury''), is proposing
to revise the regulations implementing the Bank Secrecy Act (``BSA'')
regarding money services businesses (``MSBs'') to clarify which
entities are covered by the definitions. Specifically, we are reviewing
the MSB regulatory framework with a focus on providing efficient and
effective regulation for the industry, as well as improving the ability
of regulators, law enforcement, and FinCEN to safeguard the U.S.
financial system from the abuses of terrorist financing, money
laundering, and other financial crime.
     The proposed changes are intended to more clearly delineate the
scope of entities regulated as MSBs, so that determining which entities
are obligated to comply will be more straightforward and predictable.
This rulemaking proposes to amend the current MSB regulations in the
following ways: By ensuring that certain foreign-located MSBs with a
U.S. presence are subject to the BSA rules; by updating the MSB
definitions to reflect past guidance and rulings, current business
operations, evolving technologies, and merging lines of business; and
by combining all of stored value into one category, without
substantively changing the existing definition, so that issuers of
stored value and sellers or redeemers of stored value are in the same
category. In addition, this rulemaking solicits comments on stored
value to assist FinCEN with a future rulemaking proposing a revised
definition of stored value and revising related regulations.

DATES: Written comments on the notice of proposed rulemaking must be
submitted on or before September 9, 2009.

ADDRESSES: You may submit comments, identified by RIN 1506-AA97, by any
of the following methods:
      Federal e-rulemaking portal: http://www.regulations.gov.
Follow the instructions for submitting comments. Refer to Docket number
TREAS-FinCen-2009-0002.
      Mail: FinCEN, P.O. Box 39, Vienna, VA 22183. Include RIN
1506-AA97 in the body of the text.
     Inspection of comments: Comments may be inspected, between 10 a.m.
and 4 p.m., in the FinCEN reading room in Vienna, VA. Persons wishing
to inspect the comments submitted must request an appointment with the
Disclosure Officer by telephoning (703) 905-5034 (Not a toll free
call).

FOR FURTHER INFORMATION CONTACT: Regulatory Policy and Programs
Division, FinCEN (800) 949-2732 and select option 1.

SUPPLEMENTARY INFORMATION:

I. Introduction

[... and so on... --RAH]