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More Foreign MSBs Incorporating in U.S. to Allay Bank Concerns
By Brian Monroe
printA U.S. Treasury Department rule finalized in 2011 has prompted foreign money services businesses to incorporate affiliates in the United States in an effort to retain access to American banks. The regulation, published by the Financial Crimes Enforcement Network (FinCEN) in July 2011, requires the businesses, known as MSBs, to register with the bureau, appoint a U.S.-based liaison and implement the same anti-money laundering (AML) controls that their American counterparts do under the Bank Secrecy Act. Although some questioned at the time how the United States would be able to regulate MSBs abroad, bank officials quickly recognized who would be...
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