LOUISVILLE, Ky. (March 16, 2010)For as long as we have had currency to exchange, there have
been those who produce, obtain and distribute that currency for unlawful
purposes. In the past few decades, with the prevalence of online business
(e-commerce) and the increasing anonymity of customers across the globe, these
practices have adapted to become more dangerous and more difficult to
investigate. For these reasons, the United States federal government has
instated a system of regulations designed to standardize the way U.S.
businesses communicate with consumers and move currency between hands and
around the world.Among the agencies that see to the organization and
enforcement of these transactional regulations is the Financial Crimes
Enforcement Network (FinCEN). Compliance with FinCEN, most notably the Bank
Secrecy Act, is an essential component of running a secure and federally sound
business, both online and in brick-and-mortar locations. In this article, well
discuss the basics of FinCEN, the Bank Secrecy Act and how to determine if your
business must comply
What is FinCEN?
FinCEN
was established as a division of the United States Department of the Treasury
in 1990 in order to provide a network of financial intelligence and analysis
resources to the government as a whole. FinCEN operates toward the efforts of
business transparency in order to detect, mitigate and prevent criminal
transportation and use of U.S. currency both here and abroad. Through the
FinCEN network, the U.S. government has built relationships worldwide by
sharing financial intelligence and keeping domestic businesses at a consistent
level of financial security.
What is the Bank
Secrecy Act?
The Bank Secrecy Act (BSA) is comprised of the first federal
laws specifically written to fight against criminal money laundering by putting
forth a set of security requirements with which all U.S. businesses must
comply. Placed under the administration of FinCEN in 1994, the BSA includes
both the original anti-money laundering initiatives and those added following
the creation of the USA PATRIOT Act of 2001, which broadened the BSA to
encompass anti-American funding and pro-terrorism trafficking of American
currency.
What Businesses Must
Comply?
As a matter of national security, all American businesses
have a responsibility to verify the identities of all persons with whom they do
business. However, those who will be the most impacted by FinCEN and the BSA
are financial institutions. These include, but may not be limited to:
depository institutions, security brokers and dealers and financial service
providers. Contact your local government branch if you need clarification as to
your level of obligation to FinCEN regulations.
Electronic Verification Systems, an industry leader with
more than 10 years of data provision and fraud prevention
experience, specializes in integrating identity verification and authentication
procedures into established business security structures. If youre concerned
about staying compliant with FinCEN and other federal regulatory bodies, we are
here to help. We can implement a comprehensive identity verification or identity authentication program that blends seamlessly into the end-user experience
for the very best in security and customer satisfaction. Contact us today at
ElectronicVerificationSystems.com.