Must most MSBs provide their FinCEN registration number to the credit union when opening an account?

Most Money Services Businesses (MSBs) are required to provide their FinCEN registration number when opening an account with a financial institution like a credit union. This requirement stems from the need for financial institutions to comply with the Bank Secrecy Act (BSA) and the related regulations set forth by FinCEN, which is the Financial Crimes Enforcement Network.

When an MSB opens an account, the credit union must ensure compliance with the relevant laws and regulations, including the assessment of risk associated with the account holder. The FinCEN registration number serves as a key identifier, confirming that the MSB is properly registered and complies with federal anti-money laundering (AML) requirements. By providing this number, the MSB demonstrates that it has completed the necessary registration process and is thereby adhering to the regulations that govern its operations.

This proactive approach helps financial institutions facilitate their due diligence process, ensuring they have all necessary information to comply with the BSA and maintain effective AML programs. Therefore, the requirement for MSBs to provide their FinCEN registration number is a critical aspect of maintaining regulatory compliance and fostering transparency in financial transactions.