Account Relationships with Money Services Businesses
April 8, 2005
Circular No. 11698

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a supervisory letter (SR 05-7) dated March 30, 2005, the federal bank, thrift regulatory bodies and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) have issued the 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 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.

SR letter (SR 05-7) OFFSITE
Joint statement OFFSITE PDF

Robert A. Otero
Examining Officer
Legal and Compliance Risk Department