FinCEN SAR Activity Review, Trends, Tips & Issues, Issue 10

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entities were required to renew their registrations and failed to do so,
we will deem those businesses to be unregistered MSBs. Additionally,
we indicated that failure to register (or renew registration), could lead to
civil and criminal penalties for violation of BSA regulations.
• Registration is prospective. If an MSB previously failed to register as
required, but has since implemented written policies and procedures
such that it is no longer providing services that require registration as a
MSB, it should not register for its past activity as an MSB.
• If an entity is currently registered but no longer meets the definition of
an MSB, it no longer needs to be treated as an MSB customer.
• If an entity crosses the $1,000 MSB definitional threshold on a one-time
basis, that one-time action if not repeated, does not cause the entity to
become an MSB.
In light of the above guidance, qualifying MSBs should be aware that there is
now an even greater expectation that they will properly acquaint themselves
with and comply with the registration requirement.
Initial Registration and Registration Renewal
BSA regulations require certain MSBs to register with FinCEN whether
or not they are licensed as MSBs by any state or other relevant domestic
jurisdiction. The applicable definition of an MSB includes each agent,
agency, branch, or office within the United States doing business, whether
or not on a regular basis or as an organized business concern, in one or
more of the following capacities: (1) currency dealer or exchanger; (2) check
casher; (3) issuer of traveler’s checks, money orders, or stored value; (4) seller
of traveler’s checks, money orders, or stored value; (5) money transmitter,
regardless of the amount of money transfer services offered; and (6) the
U.S. Postal Service, except with respect to the sale of postage or philatelic
products. A person who does not offer one or more of the financial services
specified in (1) through (4) above in an amount greater than $1,000 in
currency or monetary or other instruments for any one person on any one day
in one or more transactions is not covered by the definition of an MSB, and
therefore is not required to register.
At the present time, the following MSBs are excepted from the registration
requirement:
• A business that is an MSB solely because it serves as an agent of
another MSB;