Money Services Businesses

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BECKY: Hello. My name is Becky, and I work for the IRS. I would like to discuss how an effective anti-money-laundering, or AML, program can assist you in the money-services business market segment to comply with the Bank Secrecy Act, also known as the BSA. Money-services business, or MSB, activities, may include the issuance and sale of money orders and traveler´s checks, money transmission, check cashing, prepaid access provider or seller, and/or currency dealer in foreign exchange or dealing. Any of the financial services offered by an MSB carries the risk of being used in money laundering or terrorist activities. The risk is greater in the absence of a comprehensive anti-money-laundering program. An anti-money-laundering program is the key component in managing your risk, and it is required by the BSA regulations, which must describe what must be included in the program. The program must be sufficient to allow the MSB to verify the identities of its customers and to file reports and maintain records that are required by the BSA regulations. IRS BSA examiners conduct examinations to determine compliance with the BSA. Examinations are risk-based and focus on the AML program. The examiner will consider the risk assessment made by the MSB, the adequacy of the MSB´s AML program, training provided to personnel, the quality of the independent review required by the BSA regulations, and the MSB´s compliance history. Generally, an examination will include an on-site visit and walk-through of the business, interviews with key employees, such as personnel conducting transactions and the AML compliance officer, examination of the AML program to assess its adequacy, and examination of the books and records to include limited transaction testing. More information is available in the Bank Secrecy Act Anti-Money-Laundering examination manual for money-services businesses. You can find this manual at by entering keywords "Money Services Businesses" or at Select the "MSB" link. I hope this information is useful and assists you in complying with the Bank Secrecy Act.