[Congressional Record (Bound Edition), Volume 155 (2009), Part 11]
[Extensions of Remarks]
[Page 15506]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   MONEY SERVICE BUSINESS ACT OF 2009

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Tuesday, June 16, 2009

  Mrs. MALONEY. Madam Speaker, today I am introducing the ``Money 
Service Business Act of 2009''. This is bipartisan legislation that has 
been cosponsored by the Ranking Member of the Financial Services 
Committee, Spencer Bachus of Alabama as well as the Chair and Ranking 
Member of the Financial Institutions and Consumer Credit Subcommittee, 
Congressmen Luis Gutierrez of Illinois and Jeb Hensarling of Texas and 
the Ranking Member of the Oversight and Investigations Subcommittee, 
Judy Biggert of Illinois.
  Last Congress, this bill passed the House on a unanimous voice vote.
  The ``Money Service Business Act'' addresses the critical problem of 
money services businesses (MSBs) being denied access to the banking 
system.
  MSBs have experienced blanket terminations of their commercial 
accounts over the past several years due, in part, to banks responding 
to unclear guidance from regulators.
  This bill establishes a mechanism that would allow MSBs to self-
certify their compliance with Bank Secrecy Act and Anti-Money 
Laundering requirements, while allowing banks to make risk-based 
decisions about banking particular MSBs.
  MSBs, which include check cashers, money transmitters and money order 
issuers, have served our nation's communities for years.
  If this issue is left unaddressed, the viability of MSBs will be 
compromised, potentially pushing many of these transactions underground 
and potentially untraceable to law enforcement.
  Banks, reacting to regulatory fears, have terminated MSB accounts in 
a blanket fashion, in an attempt to minimize exposure to ``high risk'' 
businesses.
  Without a banking relationship, MSBs are unable to provide financial 
services to communities, making it difficult for millions of Americans 
to pay bills, send money, or cash checks.
  Federal regulatory agencies, recognizing the problem facing MSBs, 
have sought to address this issue through agency guidance and 
regulatory changes, with little effect.
  This legislation addresses this problem by enabling MSBs to self-
certify their compliance with Bank Secrecy Act and Anti-Money 
Laundering requirements.
  This approach is not novel.
  It is similar in principle to that used for international 
correspondent banking.
  It would not relieve banks of their due diligence responsibilities 
with regard to their MSB customers, rather, it would permit appropriate 
reliance on self-certification to relieve banks of being the de facto 
regulators only of MSBs' Bank Secrecy Act and Anti-Money Laundering 
compliance.
  The mechanics of this self-certification will be handled by 
regulations set forth by the Secretary of the Treasury and the 
certification will be filed with the financial institution where the 
MSB has a commercial account.
  I do want to mention that even with the implementation of the self-
certification; MSBs would continue to be responsible for complying with 
all other existing provisions of the Bank Secrecy Act and will continue 
to be the subject of rigorous on-site examinations by IRS examiners. 
MSBs are also State-regulated in many jurisdictions.
  Currently, 28 States and the District of Columbia require MSB's to be 
licensed and/or regulated by State banking agencies.
  Both MSBs and the Financial Institutions banking them will still be 
required to fully comply with all other aspects of the Bank Secrecy 
Act, including the filing of Suspicious Activity Reports and Currency 
Transaction Reports.
  Any violation of their certification would render the same civil and 
criminal penalties provided for by the Bank Secrecy Act and other Anti-
Money Laundering Provisions.
  This is a well crafted bill that allows law enforcement to continue 
to track the transactions of Money Service Businesses, while allowing 
the MSBs to have access to the banking accounts they need to conduct 
business.

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