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Federal Reserve, FinCEN Seek Input on Funds Transfer Rules

Federal ReserveThe Federal Reserve Board and the Financial Crimes Enforcement Network (FinCEN), a unit of the U.S. Treasury Department, are seeking comments on a proposal to amend the definitions of "funds transfer" and "transmittal of funds" under the regulations implementing the Bank Secrecy Act. The proposed amendments are necessary to maintain the current scope of funds transfers and transmittals subject to the Bank Secrecy Act in light of amendments to the Electronic Fund Transfer Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

When the changes made by Dodd-Frank become effective early next year, some transactions— including international funds transfers sent by consumers through banks, and cash-based or account-based transmittals of funds sent by consumers through money transmitters—will fall outside the Bank Secrecy Act rules' definitions of "funds transfer" and "transmittal of funds." To avoid this result, the Board and FinCEN are proposing to amend the definitions of funds transfer and transmittal of funds to limit the exclusion of Electronic Funds Transfer Act–covered transactions from certain rules regarding record keeping.

December 17, 2012


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