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In Reversal, Some Banks Value MSB Account Fees Over AML Risks
By Brian Monroe
printDozens of small banks and credit unions have begun courting money services businesses over the past year, offering financial services to the high-risk clients in exchange for compliance-related fees. The marketing effort is a reversal in the often fractious relationship between the companies, known as MSBs, and banks that have either turned away the businesses or charged high fees for taking on the associated anti-money laundering (AML) compliance risks. Faced with a tougher market, some small financial institutions are opening their doors to the businesses and offering lower fees to draw new clients, say MSB owners. "An increasing number of...
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