Alerts

FinCEN Issues Proposed Rule Requiring Banks and Money Transmitters to Report Cross-Border Electronic Transmittals of Funds

October 20, 2010

On September 30, 2010, the Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking (“Proposed Rule”) that, if implemented, would mandate certain depository institutions and money service businesses (“MSBs”) to affirmatively provide records and report information to FinCEN relating to certain cross-border electronic transmittals of funds (“CBETF”). Federal regulations (and certain state money transmitter laws) already require that these financial institutions maintain and make available essentially the same information, but do not require the affirmative reporting of this information, if it does not rise to the level of a suspicious transaction.