Recommended Regulatory Guidance Archive
Money transmitter regulation is dynamic. Regulators issue new guidance periodically, update existing guidance, and issue interpretive letters responding to specific industry questions. This appendix describes the types of regulatory documents you should maintain and where to find them.
FinCEN Guidance Documents (Priority 1)
Money Services Business Registration and Obligations: This is the foundational guidance defining what activities trigger MSB registration. Read it first and refer to it frequently.
Suspicious Activity Report Guidance: Provides definitions of suspicious activity and explains SAR filing requirements and procedures. Updated periodically as enforcement priorities change.
Virtual Currency Guidance: Addresses regulatory treatment of cryptocurrency, digital assets, and blockchain-based value transfer. Increasingly important as crypto regulation evolves.
Correspondent Banking Guidance: Addresses obligations for relationships with foreign banks and payment processors. Critical if you have international operations.
Currency Transaction Report Guidance: Explains CTR filing requirements, aggregation rules, and reporting procedures.
Customer Identification Program Guidance: Provides minimum standards for customer identity verification and procedures for handling customers who refuse to provide ID.
Beneficial Ownership Identification: Guidance on identifying beneficial owners of business customers and entities.
Customer Due Diligence Rule: Federal regulation implementing customer due diligence requirements beyond basic KYC.
Anti-Structuring Guidance: Addresses structuring detection and reporting procedures.
Location: All FinCEN guidance is available at fincen.gov. Subscribe to FinCEN's email updates to receive guidance when released.
FinCEN Enforcement Actions (Priority 1)
FinCEN publishes Enforcement Actions detailing violations found and penalties assessed. These are invaluable because they show what regulators actually enforce, not just what guidance says.
How to Use Them: When you read an enforcement action, identify: - What was the violation? (MSB registration failure, AML program failure, CTR failure, SAR failure) - How much was the penalty? (tells you severity) - What was the fact pattern? (helps you identify similar risk in your business) - What was the MSB doing wrong? (teaches you what not to do)
Location: fincen.gov/enforcement
Federal Regulatory Agencies' Guidance (Priority 2)
OCC Guidance on Money Transmitters: If you're a national bank or working with national banks, OCC guidance is relevant.
Federal Reserve Guidance: Less directly applicable to independent MSBs, but relevant if you maintain Federal Reserve accounts.
FDIC Guidance: Relevant if you're FDIC-insured or working with FDIC-insured institutions.
SEC Guidance on Digital Assets: If your business involves tokens that might be securities, SEC guidance is critical.
CFTC Guidance on Cryptocurrency Derivatives: If your business involves crypto derivatives trading, CFTC guidance is essential.
State Regulatory Guidance (Priority 1)
Your Primary State: The state where your principal place of business is located. Get all guidance from this state's regulator.
New York State Guidance: Even if not in New York, NYDFS guidance is comprehensive and influential. Other states sometimes adopt similar approaches.
California Guidance: California is a major market and DFPI guidance is detailed.
Texas Guidance: Texas Department of Banking provides clear, practical guidance.
Multi-State Associations: Understand the guidance from: - Money Transmitter Regulators Association (MRTA) - Conference of State Banking Supervisors (CSBS) - Money Services Business Group of the Bankers Association
Regulatory Letters and Interpretations (Priority 2)
Interpretive Letters: When regulators issue guidance responding to specific questions from industry, they publish interpretive letters. These show how regulation applies to specific fact patterns.
Private Letter Rulings: Some states issue private rulings in response to specific applicant questions. These are usually confidential but sometimes shared.
Cease and Desist Orders: When a regulator orders an institution to stop a practice, they often issue a public order. These show enforcement focus.
AML Best Practices Documents (Priority 2)
Treasury Financial Crimes Enforcement Network Handbook: Comprehensive guide to AML compliance.
OCC Bulletin on Customer Due Diligence: Provides standards for CDD beyond minimum requirements.
FinCEN's Guidances to Financial Institutions: Series of publications addressing specific AML topics.
Bank Secrecy Act Examined by the Federal Reserve: Detailed examination manual showing what federal regulators look for.
Archive Maintenance
Organize by Topic: Create a system for organizing guidance: - Folder: MSB Registration & Licensing - Folder: AML Program Requirements - Folder: OFAC & Sanctions - Folder: Cryptocurrency & Digital Assets - Folder: State-Specific Requirements - Folder: Enforcement Actions - Folder: Examination Procedures
Update Quarterly: Check FinCEN, your state regulator's website, and relevant industry association sites quarterly for new guidance.
Document Versions: When guidance is updated, archive the old version and note the update date. This shows regulators that you follow regulatory changes.
Accessible to Compliance Team: Make guidance easily accessible to your compliance team. They should be able to quickly reference guidance when making compliance decisions.
Cite in Policies: When you write your AML policy manual, cite relevant guidance showing that your policies are grounded in regulatory requirements.
Training Materials: Use guidance documents as basis for staff training. Staff should understand not just policies but regulatory foundation for policies.
Key Regulatory Sources by Topic
Sanctions Compliance: OFAC publications, Treasury guidance, Executive Orders
Customer Identification: FinCEN CIP guidance, state law requirements, FCRA guidance
Suspicious Activity Reporting: FinCEN SAR guidance, enforcement actions showing what regulators found suspicious
Currency Transaction Reporting: FinCEN CTR guidance, anti-structuring guidance
AML Program Standards: FinCEN guidance, federal examination guidance, FATF recommendations
Cryptocurrency: FinCEN virtual currency guidance, state-specific crypto guidance, SEC/CFTC guidance as applicable
Correspondent Banking: FinCEN correspondent guidance, OFAC guidance on foreign institutions
Agent Management: State-specific guidance on agent networks and oversight
How to Stay Current
FinCEN Email Alerts: Subscribe to fincen.gov email alerts for immediate notification of new guidance.
State Regulator Updates: Follow your state regulator's website and email list.
Industry Associations: Subscribe to: - Money Services Business Group updates - CSBS updates - MRTA updates
Compliance News Services: Subscribe to compliance-focused news services (ABA Banking Journal, Bloomberg Law, etc.).
Professional Networks: Join money transmitter industry associations and attend conferences. Networking with peers keeps you current.
Legal Counsel: If you have outside counsel, request quarterly updates on regulatory changes.
Document Retention
Maintain archives of all regulatory guidance for minimum 5 years, ideally longer. You may need to reference old guidance in response to regulator inquiries about your historical compliance.