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Money Services Business Manual

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Transcript for Money Services Business Manual

PORTIA:
Hello, I'm Portia Bingham and I'm talking with Beth Elfrey about the new Money Services Business Manual.

Hi Beth. Let's start with a quick definition of what a "money services" business is.

BETH:
Sure, Portia. A money services business - or MSB - is a non-bank business that offers money services.

These can include check cashing, money orders, traveler's checks, money transfers, currency dealing or exchange, and stored value products.

MSBs are subject to the rules and regulations of the Bank Secrecy Act or BSA.

Under the BSA, money services businesses have four main requirements:

To register with the federal government

To report cash transactions of more than $10,000

To report suspicious activity, and

To maintain an anti-money laundering compliance program.

PORTIA:
I understand the MSB examination manual is relatively new and will help both the IRS and businesses.

Is that right?

BETH:
You are correct.

The Financial Crimes Enforcement Network, also known as FinCEN, released the manual in December of 2008.

The IRS and many other agencies collaborated with FinCEN to produce the manual and anyone involved with MSBs will find it helpful.

The IRS will find the manual useful in conducting examinations because it contains a wealth of reference material and will help us ensure that our examinations are consistent across the country.

The manual will also be a valuable tool to help members of the MSB industry ensure that they are in compliance with all applicable Bank Secrecy Act requirements.

It can also help businesses know what to expect if they undergo a BSA examination.

PORTIA:
What information does the manual contain that will be so helpful?

BETH:
The manual covers a wide variety of topics:

Guidance on identifying and controlling risks associated with money laundering and terrorist financing;

A summary of BSA compliance requirements and examination practices for the MSB industry;

BSA/Anti-Money Laundering risks and risk management expectations; and

Conducting risk based examinations of MSBs.

PORTIA:
That does sound helpful.

Where can we get more information about MSBs and the manual?

The manual, BSA forms and publications, and a host of information about MSBs, are available on the Money Services Business Information Center on IRS.gov.

Just type "MSB" into the search box to find the Center.

PORTIA:
Thank you, Beth.

I've been talking with Beth Elfrey of the IRS.

This is Portia Bingham.

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