Don’t dump MSBs, banks urged
WASHINGTON, DC – US banking regulators have moved swiftly to stop banks curtailing business with money transmitters, because of perceived high money laundering risks within the non-banking money services businesses (MSBs).
Banks have complained that the costs and burdens for maintaining MSBs accounts had risen significantly because they must ensure that MSBs are complying with the Bank Secrecy Act (BSA) before continuing to maintain such business accounts. For fear of dealing with MSBs that may not be BSA compliant, banks began to close such accounts.
The agencies expressed concern that MSBs are losing access to banking services due to bank concerns about regulatory scrutiny, the risks presented by MSB accounts
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