FinCENs Proposed Prepaid Access Rule
By Chris Daniel, Nicole Ibbotson & Diane Pettit
On Monday, June 21, 2010, the Financial Crimes Enforcement Network (FinCEN) published the Notice of Proposed Rulemaking titled Amendment to the Bank Secrecy Act Regulations Definitions and Other Regulations Relating to Prepaid Access (the Proposed Prepaid Rule or Proposed Rule). The Proposed Prepaid Rule is mandated by Congress under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the CARD Act). The CARD Act directed FinCEN to issue final regulations regarding the sale, issuance, redemption or international transport of stored value, including stored value cards. The Proposed Rule does not apply to depository institutions (i.e. banks) issuing prepaid cards; it applies only to non-bank (1) providers of prepaid access, and (2) sellers of prepaid access.