Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.  20551
DIVISION OF BANKING
SUPERVISION AND REGULATION
SR 05-7
March 30, 2005

TO THE OFFICER IN CHARGE OF SUPERVISION AND APPROPRIATE SUPERVISORY AND EXAMINATION STAFF AT EACH FEDERAL RESERVE BANK AND TO EACH DOMESTIC AND FOREIGN BANKING ORGANIZATION SUPERVISED BY THE FEDERAL RESERVE
SUBJECT:  Account Relationships with Money Services Businesses

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision, and National Credit Union Administration, along with the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), have issued the attached interagency Statement concerning the provision of banking services to money services businesses (MSBs).

The interagency Statement describes current issues relating to the provision of banking services to MSBs and the views of the Federal Reserve, the other federal financial institutions supervisory agencies and FinCEN about assessing and controlling the varying levels of risk associated with such accounts.

To assist banking organizations, the agencies are working to develop guidance that will articulate supervisory expectations associated with MSB accounts. It is expected that this guidance will be released concurrent with FinCEN guidance for the money services business industry further outlining that industry's compliance obligations.

Reserve Banks are asked to distribute this SR letter to the domestic and foreign banking organizations supervised by the Federal Reserve in your districts, as well as to supervisory and examination staff. If you have any questions, please contact Dawn Adams, Senior Special Anti-Money Laundering Examiner, at (202) 452-3964, or Bridget M. Neill, Manager, Anti-Money Laundering Policy and Compliance Section, Division of Banking Supervision and Regulation, at (202) 452-5235.

Herbert A. Biern
Senior Associate Director


Attachment:
Joint Statement on Providing Banking Services to Money Services Businesses (102 KB PDF)
SR letters | 2005
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