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ACFCS Financial CrimeCast – The financial crime challenges facing the MSB sector

Thursday, April 13, 2017   (0 Comments)
Posted by: Brian Monroe
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By Brian Monroe
bmonroe@acfcs.org
April 13, 2017

Featuring David Landsman, Executive Director of the National Money Transmitters Association

The money services business sector has had a tough go over the past decade, from the largest remitters to the most diminutive and dispersed mom and pop agent locations. Recent years have brought challenging exam expectations, new financial crime risks, and the herculean but prosaic task of getting and keeping a bank account.

This podcast takes listeners on a tour of these perennial issues and obstacles. It goes beyond the hullabaloo to take a hard look at the new forces arrayed against money services businesses (MSBs). Our guest is David Landsman, executive director of the National Money Transmitters Association, an industry lobbying and outreach group. He analyzes areas including:

  • The rise of fintech encroaching on bottom lines.
  •  New voluntary international standards to defend against rampant bank de-risking.
  • A potential U.S. tax on remittances to certain regions with the stated goal of paying for a Mexican border wall under the auspices of national security.
  • Newly enacted New York cyber and anti-money laundering (AML) aimed at banks, but that will fall on MSBs as well, requiring stronger transaction monitoring, sanctions filtering and cybersecurity systems, with failures falling on the board or top compliance officials.  

Overall, the MSB sector includes a bevy of business types, including money remitters, currency exchangers, dealers in precious metals, and other entities considered financial institutions under U.S. AML rules.

And while these operations provide vital services around the world, including in some regions that are risky, struggling or even failing, there is an increasing focus on this group by state and federal regulators and investigators. This is illustrated by some of the largest penalties against individual remitters in history.

As well, and in parallel with their banking partners,  money remitters in particular are being forced to adopt a converged, enterprise-wide approach to financial crime compliance, leveraging systems designed to uncover potential money laundering to also uncover instances of fraud, human trafficking and other crimes. 

Click below to listen to the 30-minute podcast:


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