Q: One of our new
accounts is an MSB that sells prepaid cards.
When doing our due diligence on the account we requested their FinCEN
registration information. We were told
that providers of prepaid cards are not required to register. Is this correct?
A: No. As of January 29, 2012, providers of prepaid
access must also register with FinCEN, similar to how the other money services
business (MSB) categories are required to register. In 1999, when FinCEN issued its MSB
rule, it deferred certain requirements (such as registration) for prepaid access
based on its complexity and the desire to avoid unintended consequences with
respect to a new industry. But as the prepaid access industry flourished, FinCEN added suspicious
activity reporting, customer and transaction information recordkeeping and registration
requirements for prepaid access to the MSB regulation.
information see Definitions and Other Regulations Relating
to Prepaid Access – final rule.