Introductory BSA AML Examiner School Manual Palm Springs 2019

MSBs Can Help Fight Money Laundering

Establish Customer Relationships (Cont.) Minimizes the risk that the MSB will be used for illegal activities. Reduces the risk of government seizure and forfeiture of funds associated with customer transactions (such as outstanding money orders/traveler’s ■ ■

illegal activity has occurred and when the activity has met the relevant reporting threshold. The types of MSBs that are currently covered by the MSB SAR requirements are: Money transmitters, Currency dealers or exchangers, Money order — issuers, sellers or redeemers, Traveler’s checks — issuers, sellers, or redeemers, U.S. Postal Service FinCEN is considering amending the SAR regulation to require check cashers to report suspicious activity. MSBs that provide only stored value services are not required to report suspicious activity at this time. Refer to www.msb.gov for updates on which MSBs are required to file SARs. ■ ■ ■ ■ ■

checks and outstanding money transfers) when the customer is involved in criminal activity. Protects the reputation of the MSB.

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File Suspicious Activity Reports Suspicious Activity Reports (SARs) are among the government’s main weapons in the battle against money laundering and other financial crimes. Such reports are also a key component of an effective anti-money-laundering compliance program. Many MSBs are required to file SARs when they suspect that potentially

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