South Carolina Enacts its First Law Regulating Money Transmission

Categories: Money Transmission

Last month South Carolina joined 48 other states in regulating money transmission with unanimous passage of House Bill 4554. The bill, enacting the South Carolina Anti-Money Laundering Act, provides the framework for money transmission and currency exchange regulation in the state and is based on the Uniform Money Services Act. While the Anti-Money Laundering Act closely adopts the uniform law sections for money transmission and currency exchange, because South Carolina law already regulates check cashers, this section in the Uniform […] Read More »


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New Mexico Passes Money Transmitter Licensing Law; Effective Jan. 1, 2017 (Part 1)

Categories: Money Transmission

Last month New Mexico passed its first money transmitter licensing law. The State previously only required licensing for the sale of checks and money orders. The new law now covers money transmitters, check cashers and currency exchangers. Further, New Mexico’s law is an adoption of the Uniform Money Services Act, making it the ninth US State or territory to enact it. With the law, New Mexico joins the era of comprehensive state regulation of money transmitter licensing. “Money transmission” is defined in […] Read More »


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The CFPB’s Examination Authority Over MSBs

Categories: Consumer Protection

New and existing money services businesses frequently ask when or if the CFPB will “examine” them.  All consumer financial services businesses naturally worry about the CFPB’s reach and want to be prepared.  This article outlines the factors that could lead to CFPB examination of an MSB. It’s important first to understand the distinction between “supervisory” authority and enforcement authority.  The former relates to whether the CFPB can conduct a formal examination of the company, while the latter relates to when […] Read More »


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FinCEN Releases Additional FAQs on Prepaid Access Rule

Categories: Prepaid

On March 24 FinCEN issued a second set of the Frequently Asked Questions meant to clarify key questions that have persisted regarding compliance with the Prepaid Access Rule. The FAQs covered five questions. Three focus on application of the closed-loop exemption from the definition of prepaid program, which is one basis for an exception from FinCEN requirements for sellers and providers of prepaid access. Another question elaborates on the policies and procedures reasonably adapted to avoid the $10,000 threshold for […] Read More »


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CFPB Spotlights Prepaid Products in Latest Monthly Snapshot; References Pending Prepaid Final Rule Release

Categories: Prepaid

Earlier this month the CFPB again highlighted prepaid card products in its Monthly Snapshot. In December 2015, the product spotlight was money transfers, but the CFPB also noted a doubling in prepaid complaints as compared to the same period a year before. Perhaps this is why the CFPB’s complaint snapshot released on March 1 spotlights prepaid products. Although the Report, which covers a three-month average of complaints from November to January, shows what the CFPB refers to as a “spike” […] Read More »


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New Interagency Guidance Clarifies CIP Requirements for Prepaid Cards

Categories: Prepaid

On March 21, 2016, FinCEN and the federal bank regulatory agencies published Guidance to issuing banks on the CIP requirements applicable to prepaid cards.  While the Guidance referred to “prepaid cards,” footnote 5 to the Guidance clarifies that it applies to other prepaid access products that otherwise meet the criteria described in the Guidance, including prepaid access products offered through mobile phones or Internet sites. The Guidance reflects a common sense interpretation of existing BSA regulation, and it’s good to […] Read More »


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