FinCEN issues final rules relating to money services business (MSB) definitions

The purpose of the paper is to explain FinCEN's money services business rule (MSB Rule) revising the regulations that apply to MSBs.

The paper details the principal revisions in the new MSB Rule, including an amended definition of an MSB, an activity threshold, and applicability of the rule to foreign‐located MSBs, money transmitters, dealers in foreign exchange, check cashiers, and issuers of travelers' checks as defined in the rule.

The final rule clarifies which activities subject a person to the Bank Secrecy Act's rules pertaining to MSBs and subjects certain foreign‐located MSBs with a US presence to US rules.

The paper provides practical guidance from experienced financial services lawyers.