United States Government Publishing Office
publisher
pbl
distributor
dst
United States
National Archives and Records Administration
Office of the Federal Register
author
aut
Government Organization
text
government publication
eng
FR
Regulatory Information
2010_register
executive
2010-06-29
article
Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations-Definitions and Other Regulations Relating to Prepaid Access
Proposed Rules
D09002ee1bdd1c039
D09002ee1bdd1c0dc
United States
Department of the Treasury
originator
org
United States Government Agency or Subagency
FinCEN is proposing to revise the Bank Secrecy Act (``BSA'') regulations applicable to Money Services Businesses with regard to stored value or prepaid access. More specifically, the proposed changes include the following: renaming ``stored value'' as ``prepaid access'' and defining that term; deleting the terms ``issuer and redeemer'' of stored value; imposing suspicious activity reporting, customer information and transaction information recordkeeping requirements on both providers and sellers of prepaid access and, additionally, imposing a registration requirement on providers only; and exempting certain categories of prepaid access products and services posing lower risks of money laundering and terrorist financing from certain requirements. The proposed changes are intended to address regulatory gaps that have resulted from the proliferation of prepaid innovations over the last ten years and their increasing use as an accepted payment method. If these gaps are not addressed, there is increased potential for the use of prepaid access as a means for furthering money laundering, terrorist financing, and other illicit transactions through the financial system. This would significantly undermine many of the efforts previously taken by government and industry to safeguard the financial system through the application of BSA requirements to other areas of the financial sector. In this proposed rulemaking, we are reviewing the stored value/prepaid access regulatory framework with a focus on developing appropriate BSA regulatory oversight without impeding continued development of the industry, as well as improving the ability of FinCEN, other regulators and law enforcement to safeguard the U.S. financial system from the abuses of terrorist financing, money laundering, and other financial crime. In the course of our regulatory research into the operation of the prepaid industry, we have encountered a number of distinct issues, such as the appropriate obligations of payment networks and financial transparency at the borders, and we anticipate future rulemakings in these areas. We will seek to phase in any additional requirements, however, as the most prudent course of action for an evolving segment of the money services business (``MSB'') community.
75 FR 36589
https://www.govinfo.gov/app/details/FR-2010-06-28/2010-15194
2010-15194
FR28JN10-24
RIN 1506-AB07
4810-02-P
https://www.govinfo.gov/app/details/FR-2010-06-28/2010-15194
https://www.govinfo.gov/content/pkg/FR-2010-06-28/html/2010-15194.htm
https://www.govinfo.gov/content/pkg/FR-2010-06-28/pdf/2010-15194.pdf
Administrative Practice and Procedure
Banks
Banking
Brokers
Currency
Foreign Banking
Foreign Currencies
Gambling
Investigations
Penalties
Reporting and Recordkeeping Requirements
Securities
Terrorism
20 p.
36589
36608
75 FR 36589
Code of Federal Regulations
Title 31 Part 103
31 CFR Part 103
Regulation Identification Number 1506-AB07
RIN 1506-AB07
Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations-Definitions and Other Regulations Relating to Prepaid Access; Federal Register Vol. 75, Issue
PRORULE
2010-15194
DEPARTMENT OF THE TREASURY
2010-07-28
4810-02-P
2010-15194
Notice of proposed rulemaking.
FinCEN is proposing to revise the Bank Secrecy Act (``BSA'') regulations applicable to Money Services Businesses with regard to stored value or prepaid access. More specifically, the proposed changes include the following: renaming ``stored value'' as ``prepaid access'' and defining that term; deleting the terms ``issuer and redeemer'' of stored value; imposing suspicious activity reporting, customer information and transaction information recordkeeping requirements on both providers and sellers of prepaid access and, additionally, imposing a registration requirement on providers only; and exempting certain categories of prepaid access products and services posing lower risks of money laundering and terrorist financing from certain requirements. The proposed changes are intended to address regulatory gaps that have resulted from the proliferation of prepaid innovations over the last ten years and their increasing use as an accepted payment method. If these gaps are not addressed, there is increased potential for the use of prepaid access as a means for furthering money laundering, terrorist financing, and other illicit transactions through the financial system. This would significantly undermine many of the efforts previously taken by government and industry to safeguard the financial system through the application of BSA requirements to other areas of the financial sector. In this proposed rulemaking, we are reviewing the stored value/prepaid access regulatory framework with a focus on developing appropriate BSA regulatory oversight without impeding continued development of the industry, as well as improving the ability of FinCEN, other regulators and law enforcement to safeguard the U.S. financial system from the abuses of terrorist financing, money laundering, and other financial crime. In the course of our regulatory research into the operation of the prepaid industry, we have encountered a number of distinct issues, such as the appropriate obligations of payment networks and financial transparency at the borders, and we anticipate future rulemakings in these areas. We will seek to phase in any additional requirements, however, as the most prudent course of action for an evolving segment of the money services business (``MSB'') community.
Written comments on the notice of proposed rulemaking must be submitted on or before July 28, 2010.
Regulatory Policy and Programs Division, FinCEN (800) 949-2732 and select option 1.
Administrative Practice and Procedure
Banks
Banking
Brokers
Currency
Foreign Banking
Foreign Currencies
Gambling
Investigations
Penalties
Reporting and Recordkeeping Requirements
Securities
Terrorism
Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations:
Definitions and Other Regulations Relating to Prepaid Access
,
oira_submission@omb.eop.gov
Amazon.com
http://www.fdic.gov/householdsurvey/full_report.pdf
http://www.phil.frb.org/payment-cards-center/publications/discussion-papers/2007/D2007JuneUpdateDebitCardMarketTrends.pdf
http://www.regulations.gov
Federal Register
Vol. 75, no. 123
Office of the Federal Register, National Archives and Records Administration
2010-06-28
continuing
daily
deposited
born digital
790 p.
Table of Contents:
AE 2.7:
GS 4.107:
AE 2.106:
KF70.A2
https://www.govinfo.gov/app/details/FR-2010-06-28
P0b002ee180279b4b
0097-6326
0042-1219
0364-1406
769-004-00000-9
000582072
f:FR28JN10
https://www.govinfo.gov/app/details/FR-2010-06-28
https://www.govinfo.gov/content/pkg/FR-2010-06-28/pdf/FR-2010-06-28.pdf
https://www.govinfo.gov/content/pkg/FR-2010-06-28/xml/FR-2010-06-28.xml
fdlp
36505
37285
DGPO
2010-06-29
2023-05-01
FR-2010-06-28
machine generated
eng
FR
FR-2010-06-28
75
123