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FinCEN Prepaid Access Rule Imposes New Compliance Duties on Non-Bank Money Services Businesses

On July 26, 2011, the Financial Crimes Enforcement Network (FinCEN) issued a long-awaited final rule implementing the Bank Secrecy Act (BSA) applicable to Money Services Businesses (MSBs) with regard to stored value, or prepaid access (Prepaid Access Final Rule or Final Rule). The Final Rule was issued under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the CARD Act), which directed FinCEN to issue final rules regarding the sale, issuance, redemption or international transport of stored value, including stored value cards. Pursuant to that authority, FinCEN published a Notice of Proposed Rulemaking (NPRM) on June 21, 2010. The Prepaid Access Final Rule follows a related final rule issued by FinCEN on July 18, 2011, which clarified the types of entities subject to the requirements applicable to MSBs (MSB Definitions Rule).

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