Re: Effective Date for the Suspicious Activity Reporting Requirement for Money Services BusinessesRemains January 1, 2002
The U.S. Department of the Treasury is announcing that the January 1, 2002 date on which certain money services businesses (MSBs) becomesubject to the suspicious activity reporting requirement under the Bank SecrecyAct will remain in effect. The rule requires that money transmitters, and issuers, sellers, and redeemers of moneyorders and traveler's checks report suspicious activity occurring on or afterJanuary 1, 2002. The report must be filed no later than 30 calendar days from the date the suspicious activity is detectedby the MSB. A notice will be published in the Federal Register, according with their schedule, announcing that thereis no change to the final rule that was published in March 2000.
Treasury’s Financial Crimes Enforcement Network (FinCEN) isdeveloping a form to be used solely by money transmitters and issuers, sellersand redeemers of money orders and traveler’s checks to report suspicioustransactions. In the interim, these MSBs are to use the existing bank SAR form, TD F 90-22.47, to report suspiciousactivities. MSBs should write the letters “MSB” in block print at the top of the form and in the open space initem 5 of the form to distinguish it from reports filed by depositoryinstitutions. The form must be filed with the IRS Enterprise Computing Center-Detroit at the address printed on the form.The form will be available at FinCEN’s recently launched website for MSBs - www.msb.gov.FINCEN will continue development of practical guidance materials. Duringthis interim period, MSBs are expected to demonstrate good faith, reasonableefforts to comply with the reporting rule.
MSBs are also encouraged to continue using the FinancialInstitutions Hotline that has been established to report terrorist-relatedsuspicious activity in an expedited manner. The number is 1-866-556-3974.The purpose of the Hotline is to facilitate immediate transmittal of information to law enforcement. The use of the Hotline is voluntary and doesnot negate the responsibility of an MSB to file a SAR form.
The SAR rule is the second of two new requirements affectingMSBs. Certain MSBs must also register with FinCEN by December 31, 2001.
FinCEN is continuing with its extensive outreach program tothe MSB community and has taken several steps to help inform MSBs about therequirements and how to comply. In addition to the new website, which includes relevant statutes and regulations,the registration form, and explanations of the new rules, thousands of MSBsacross the country are being contacted by FinCEN regarding these newrequirements and guidance materials are being provided.
FinCEN is also working with relevant trade associations andcorporations and will be providing MSBs with the opportunity to order ordownload free educational materials, including an information packet, a poster,and a training brochure. Plans are underway to continue education and outreach efforts over the course of the nextyear.
For more information on the MSB registration and suspiciousactivity reporting requirements or other Bank Secrecy Act requirementsapplicable to MSBs, businesses and others may refer to www.msb.govor contact the DCC Hotline at 1-800-800-2877 and press 3.