Vienna, Va. – The Financial Crimes Enforcement Network (FinCEN) today announced an assessment of civil money penalties totaling $40,000 against brothers Omar Abukar Sufi and Mohamed Abukar Sufi, for non-compliance with Bank Secrecy Act (BSA) money transmitter registration requirements. The Sufi brothers, doing business as Halal Depot of Wyoming, Michigan operated a money transmission business at their grocery store by sending funds on behalf of their customers to beneficiaries in Yemen, Somalia, Sudan, Kenya, Saudi Arabia, Uganda, Ethiopia, Qatar, Europe and the United Arab Emirates. At no time did the Sufi brothers register with FinCEN as a money services business (MSB) as required by the BSA.
List of Registered Money Services Business with FINCEN
The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) makes available a new list of registered money services businesses. The list provides information per state/territory and reflects information provided by filers. Each is arranged alphabetically – first, by the selected state, then, by each city within the selected state, and finally, by MSB Registrant name within each city. FinCEN said the list should only be used as a general reference for the public and may contain inaccuracies. The list can be downloaded at: https://www.fincen.gov/financial_institutions/msb/msbstateselector.html
MTRA Holds Another Successful Conference
MTRA’s 20th Annual Conference was held August 30 – September 2, 2010 at Squaw Creek Conference Center, Olympic Village, California. More than 180 regulators and industry officials attended the four day event, representing 26 member states and over 55 money transmitters across the country. The conference was opened by MTRA President Joseph E. Rooney of Maryland who gave an in memoriam address about MTRA founder Nannette Smith, who passed away earlier this summer. California Commissioner William Haraf welcomed the conferees to California.
FinCEN Director James Freis delivered the keynote address focusing on the recently proposed prepaid card regulations. The program provided an opportunity to facilitate networking and the exchange of ideas and information between and among industry and regulators. There were timely panel presentations on prepaid cards, what law enforcement does with SAR filings, monitoring and aggregating data on customer activity, Grand Jury investigations, best practices to analyze transmission data, a legislative update, and a closing session on banking MSBs. Speakers from many federal agencies were featured including the IRS, FinCEN, OFAC, US Immigration and Customs Enforcement, the US Department of Justice Drug Enforcement Section, and the US Department of Justice Asset Forfeiture and Money Laundering Section.
PDF files of many of the presentations can be found in the Annual Conference section of the MTRA website.
In closing, President Rooney announced that the 2011 conference will be held in Jacksonville, FL on October 3-6, 2011.
MTRA Holds Operations School In Florida
MTRA conducted its 2010 Operations School on March 1 – 5 at the Florida Hotel & Conference Center in Orlando, Florida. Thirty-two examiners from thirteen states attended this school with the host state of Florida sending nine students. This school focused on the operations of a Mexican wire transfer company in which consultant instructor Mark McFarlin took students through the transactional flow of funds from sender to recipient. Instructors Alex Ketter-Washington, John Bishop-Ohio, Rick Posey-California, and Ryan Seals-Wyoming presented sessions on agent, financial, and operational examination processes along with state and federal compliance reviews of permissible investments and Bank Secrecy Act, USA Patriot Act and Office of Foreign Asset Control laws and regulation.
MTRA is currently planning an Intermediate School to be held the first quarter of 2011 on the west coast.
MTRA / CSBS Comment on FINCEN’s Proposed Rulemaking
The Money Transmitter Regulators Association (MTRA) and the Conference of State Bank Supervisors (CSBS) issued a joint comment letter in response to FinCEN’s Notice of Proposed Rulemaking to the Definitions and other Regulations relating to Money Services Businesses. The two organizations also provided comments with regard to specific provisions of the proposal.
MTRA and CSBS are supportive of FinCEN’s proposed amendments as the proposals will provide additional clarification in the Bank Secrecy Act regulations relating to Money Services Businesses. Additionally the two organizations have provided comments and suggestions for consideration. The joint comment letter can be found here.