The Financial Crimes Enforcement Network on Wednesday issued a release reminding banks of concerns and anti-money-laundering guidance involving informal value transfer systems.
Fincen issued guidance in 2003 on these type of money-services businesses, yet the agency warned that such systems have recently been used to fund terrorist activity.
Sophisticated IVTS operate in the U.S. and interact with other financial institutions for storing currency, clearing checks, remitting and receiving funds, and obtaining other routine financial services, rather than acting independently of the formal financial system. They are obligated to register with Fincen and follow applicable Bank Secrecy Act guidance for MSBs.
