BSA Definitions Amended

As you probably recall, the Remittance Transfer Rule in Regulation E (Electronic Funds Transfer), went into BSA Training and Banking Regulations Compliance Consulting deb11 - BSA Definitions Amendedeffect on October 28, 2013.  The types of transactions covered under the rule were expanded, some of which, have been covered under the Bank Secrecy Act (BSA).  This overlap caused certain transactions to fall outside the BSA definitions of “funds transfer” [§ 1010.100(w)] and “transmittal of funds” [§1010.100(ddd)].

To avoid these transactions falling outside the grasp of the BSA, FinCEN recently issued a final rule to revise these definitions.  Specifically, the following verbiage was added to each definition:

Electronic fund transfers as defined in section 903(7) of the Electronic Fund Transfer Act [15 U.S.C. 1693a(7)], as well as any other funds transfers that are made through an automated clearinghouse, an automated teller machine, or a point-of-sale system, are excluded from this definition.

The final rule is effective January 3, 2014.

Deb Irving

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