WASHINGTON (9/26/14)--An administrative ruling has been issued by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) regarding its regulations on currency transporters. The purpose of the ruling is to clarify FinCEN's regulations involving persons transporting currency.
A currency transporter is defined by FinCEN as any person physically transporting currency, including armored car services and certain types of cash couriers. A money transmitter is defined as a person providing services that include the acceptance of or transmission of currency or funds.
Currency transporters and money transmitters have different regulatory requirements. According to FinCEN's ruling, the following activities exempt currency transporters from being money transmitters:
In all other scenarios, the currency transporter will be deemed a money transmitter under FinCEN's regulations, according to FinCEN's ruling.
When a federally regulated financial institution is acting as a shipper of currency, FinCEN will consider the transportation to be part of the institution's activities, thus considering the financial institution as being primarily responsible for anti-money laundering compliance.
"The federally regulated financial institutions will therefore need to have (or ensure that it obtains from the currency transporter within a reasonable time) full knowledge about the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) particulars of a physical transportation of currency," the ruling reads. "This will be necessary so that the financial institution can comply with its AML program obligations, its BSA reporting obligations (including both currency transaction reporting and suspicious activity reporting), and other regulatory requirements in connection with the transportation."
Use the resource link below to access the complete ruling.