The Financial Crimes Enforcement Network issued a proposal Monday that would subject nonbank prepaid cards to Bank Secrecy Act regulations.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 mandated the change, which Fincen said would address regulatory gaps.

"If these gaps are not addressed, there is increased potential for the abuse of prepaid access as a means for furthering money laundering, terrorist financing and other illicit transactions through the financial system," Fincen said in the proposal. "For instance, the ease with which prepaid access can be obtained, combined with the potential for relatively high velocity of money through accounts involving prepaid access and anonymous use, may make it particularly attractive to illicit actors."

Fincen has already covered a limited framework of prepaid products as part of the money services businesses regulations for sellers, issuers and redeemers of stored value. The new proposal would make nonbank providers of prepaid cards also subject to BSA rules.

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