AML Compliance Attorneys
Bank Secrecy Act programs, FinCEN reporting, and examination readiness for money services businesses, payment companies, and digital asset firms nationwide.
A business that is a money services business under federal law must develop, implement, and maintain an effective anti money laundering program. The rule at 31 CFR 1022.210 requires the program to be in writing, to be commensurate with the risks posed by the location, size, nature, and volume of the services provided, and to be available to the Department of the Treasury on request. Banking partners, payment processors, and state regulators ask to see it before they will do business with you.
Industria Business Lawyers advises money transmitters, payment collectors, crypto exchangers, and other financial services businesses on whether the program requirement applies, what the program must contain, how the reporting and recordkeeping rules attach, and how to respond when a bank, an examiner, or law enforcement asks questions. We write programs that match the business rather than a template, and we revise them as the business grows.
Every business carries a different risk profile, and the rule scales the program to it. The work is in getting the fit right.
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Find Out What Your AML Program Must Contain
AML Compliance Questions We Handle
The Bank Secrecy Act rules for money services businesses are specific about what a program must include and when reports must be filed. These are the questions that come up most.
Whether the Program Requirement Applies to You
The program rule at 31 CFR 1022.210 applies to each money services business as defined by 31 CFR 1010.100(ff), which includes money transmitters, dealers in foreign exchange, check cashers, and providers and sellers of prepaid access. Whether a business falls inside one of those categories is a matter of facts and circumstances. We make that determination first, because it drives everything that follows.
The Four Required Program Elements
At a minimum the rule requires policies, procedures, and internal controls reasonably designed to assure compliance, including customer identification, report filing, record creation and retention, and responding to law enforcement requests; a designated person to assure day to day compliance; education and training of appropriate personnel, including in the detection of suspicious transactions; and independent review to monitor and maintain an adequate program, at a scope and frequency commensurate with risk. We draft each element to the business.
Suspicious Activity Reporting
Under 31 CFR 1022.320, a money services business must report a suspicious transaction conducted or attempted by, at, or through it that involves or aggregates funds or other assets of at least $2,000 and that the business knows, suspects, or has reason to suspect meets the rule’s criteria. We build the monitoring, escalation, and filing procedures and advise on individual filing decisions.
Currency Transaction Reporting and Recordkeeping
Under 31 CFR 1010.311, a financial institution must file a report of each deposit, withdrawal, exchange of currency, or other payment or transfer that involves a transaction in currency of more than $10,000. Related rules govern the records a money services business must create and keep. We map which reports and records apply to your transaction types and set up the procedures to produce them.
Registration and the Agent Relationship
Each money services business must register with FinCEN under 31 CFR 1022.380 whether or not it is licensed by any state, with limited exceptions such as a person that is a money services business solely because it acts as an agent of another. The program rule lets a principal and its agent allocate responsibility for policies and controls between them by agreement. We handle the registration and draft the allocation. Our FinCEN MSB registration page covers the filing in detail.
Digital Asset Businesses
FinCEN guidance FIN-2019-G001, issued 9 May 2019, states that exchangers and administrators of convertible virtual currency generally qualify as money transmitters under the Bank Secrecy Act while users do not, and that the treatment of intermediaries is not technology dependent. A crypto exchanger, kiosk operator, or hosted wallet provider that is a money transmitter carries the same program, reporting, and registration obligations as any other money services business. We apply the guidance to the specific model.
Federal Program Rules and State Requirements Together
The federal program is the baseline. State licensing and state supervision add their own layer.
Federal. FinCEN administers the Bank Secrecy Act rules for money services businesses. The program requirement, the suspicious activity reporting rule, the currency transaction reporting rule, and the registration rule apply nationwide and apply to a business whether or not any state has licensed it. The program must be developed and implemented by the later of 24 July 2002 and the end of the 90 day period beginning the day after the business is established.
State. State money transmitter regulators examine licensees for compliance with the federal program rules as part of their own supervision, and several states impose additional requirements. New York, for example, requires a license from the Department of Financial Services to engage in virtual currency business activity involving New York or a New York resident, and applies its own transaction monitoring and filtering rule to regulated entities. Our money transmitter licensing page covers the state licensing side.
Banking partners. A bank onboarding a payments or digital asset business will ask for the written program, the FinCEN registration, the state licensing analysis, and evidence of independent review. Having all four ready is usually what moves an account application forward. Businesses that collect payments on behalf of a seller may fall within a state agent of payee exemption, which is covered separately.
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I would recommend working with Aaron and team.”
Julien Genestoux from Unlock, Inc
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They consistently deliver thorough and timely work. For any small business looking for dependable and knowledgeable corporate counsel, we wholeheartedly recommend IBL.”
Felipe Pinto from Revolve Labs
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As a result, we’ve continued to rely on them as our go-to legal counsel for ongoing corporate matters.”
Zachary Panos from Fourcaster LLC
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The attorneys were incredibly responsive, guiding me through every step of the process with clarity and professionalism. They took the time to address all my questions and concerns, ensuring that I felt confident in each decision we made. Their attention to detail and thoroughness were evident in the documents they prepared, which gave me peace of mind knowing that everything was handled properly. What stood out most was their commitment to my vision. They not only provided legal advice but also offered valuable insights into the industry, helping me navigate potential challenges and seize opportunities. Their strategic approach was instrumental in setting up a robust fund structure that aligns with my goals. Overall, working with IBL was a fantastic experience. They made a complex process manageable and stress-free. Thank you for your outstanding support.””
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Tell Us About Your Matter
How We Build and Maintain an AML Program
Business Model Review +
What the business does, what it accepts and transmits, who its customers are, where they are, and which products or corridors carry higher risk.
Status Determination +
Whether the business is a money services business under the federal definitions, which category applies, and whether it is a principal or an agent.
Risk Assessment +
A written assessment of the risks posed by the location, size, nature, and volume of the services, which the rule uses to size every other element of the program.
Program Drafting +
Policies, procedures, and internal controls; the compliance officer designation; the training plan; and the independent review schedule, written to the assessed risk.
Reporting and Recordkeeping Procedures +
Suspicious activity monitoring and filing, currency transaction reporting where applicable, and the record creation and retention procedures the rule requires.
Registration and Agent Agreements +
The FinCEN registration and, where the business operates through or as an agent, the written allocation of program responsibilities.
Examination and Inquiry Response +
Preparation for state examinations, responses to bank partner due diligence, and handling of law enforcement requests as they arrive.
FAQ
01 • Compliance Does a small payments business really need a written AML program?
If the business is a money services business under 31 CFR 1010.100(ff), the program rule applies regardless of size. The rule scales the program to the risks posed by the size, location, nature, and volume of the business, so a small business can have a short program, but it must have one in writing.
02 • Compliance What are the four elements every program must have?
Under 31 CFR 1022.210(d): policies, procedures, and internal controls reasonably designed to assure compliance; a designated person responsible for day to day compliance; training of appropriate personnel; and independent review to monitor and maintain the program. The scope and frequency of the review must be commensurate with risk.
03 • Compliance When must a money services business file a suspicious activity report?
Under 31 CFR 1022.320, when a transaction conducted or attempted by, at, or through the business involves or aggregates at least $2,000 and the business knows, suspects, or has reason to suspect it meets the rule’s criteria. The rule also permits voluntary filing below that threshold.
04 • Compliance Is FinCEN registration part of the AML program?
They are separate obligations under separate rules. Registration is a filing under 31 CFR 1022.380. The program is a written document and set of practices under 31 CFR 1022.210. A money services business generally needs both, and a bank partner will ask for both.
05 • Compliance Do crypto businesses fall under these rules?
FinCEN’s 2019 guidance states that exchangers and administrators of convertible virtual currency generally qualify as money transmitters under the Bank Secrecy Act. A business that is a money transmitter carries the program, reporting, and registration obligations whatever technology it uses. Whether a particular model qualifies depends on its facts.
Talk to an AML Compliance Attorney
Money services businesses, payment companies, and digital asset firms anywhere in the United States. Call (202) 860-1210 or describe your business through the form. Every business carries a different risk profile, and not every business is a money services business. We will tell you whether the rules apply to yours and what a program would need to contain.
This page provides general information about anti money laundering program requirements under the Bank Secrecy Act regulations and does not constitute legal advice. Reading it does not create an attorney client relationship. Rules cited were reviewed on the date this page was last updated and are subject to change. Whether a particular business is subject to these rules depends on its specific facts.