FinCEN announces new AML guidelines

On March 1, 2011, the updated federal anti-money laundering regulations went into effect. The updated regulations, which prepaid card companies must comply with, are designed to shore up regulatory gaps that arose due to the growth of the little-over-a decade-old prepaid card industry, which wasn't in existence when the original Bank Secrecy Act regulations were propagated.

The Financial Crimes Enforcement Network (FinCEN) also said it reorganized and renumbered into a new chapter the regulations that now apply to prepaid card companies. The old regulations found in Part 103 in Chapter I of the Code of Federal Regulations (CFR) under the heading "Title 31, Money and Finance: Treasury" is now Chapter X of Title 39 of the CFR, and it is entitled "Title 31 Chapter X - Financial Crimes Enforcement Network."

According to FinCEN, the reorganization streamlines the Bank Secrecy Act regulations into "general and industry-specific parts, making the regulatory obligations clearer in their structure and more accessible to affected financial institutions."

FinCEN has set up a webpage devoted to Chapter X to help companies transition from the old regulations. Interested parties can also call FinCEN's Regulatory Helpline at 800-949-2732 and select option 6.

To learn more about FinCEN's regulations and how they relate to the prepaid card industry, see:

• "What is stored-value?" SellingPrepaid E-Magazine, Oct. 16, 2009, issue 09:10:A

• "FinCEN seeks comprehensive AML framework," SellingPrepaid E-Magazine, June 30, 2010, issue 10:06:B

• "GAO on why prepaid needs regulation," SellingPrepaid E-Magazine, Dec. 21, 2010, issue 10:12:A.

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