FinCEN is the Financial Crimes Enforcement Network, a bureau of the US Department of the Treasury tasked with policing financial transactions and safeguarding consumers from bad practice and criminal activity. FinCEN enforces Money Services Businesses, its term covering money transfer providers, to comply with BSA. It can impose fines and refer cases to law enforcement agencies in the US. It may also share information with regulators in other countries.

The body operates primarily under the Currency and Financial Transactions Reporting Act, more commonly referred to as the Bank Secrecy Act (BSA), which was established to counter money laundering and terrorism. Any money transfer provider that is FinCEN regulated therefore complies with BSA and all surrounding legislation regarding financial transactions and money laundering.

To comply with the BSA and be FinCEN regulated, money transfer providers are subject to a wide range of anti-money laundering obligations. For example, they must establish anti-money laundering programs, file currency transaction reports, share records of suspicious activity, and collect and maintain customer information and transaction records.

Protection for Consumers

For consumers or businesses looking for an international money transfer solution, FinCEN regulated means they can rest easy knowing that the provider complies with all necessary legislation and their money is not, at any stage, being used to finance criminal activity or terrorism. Any company can be looked up in the FinCEN MSB database.

FinCEN regulated providers should also operate segregated client accounts, meaning all funds are kept independent of the business’s day-to-day operating accounts. So if the broker runs into financial difficulty the separation of accounts will ensure client funds are safe.

For anyone looking to send money to or from the USA it means their funds will be safely and securely transferred in a timely fashion. All US-registered money transfer providers/partners on FXcompared are regulated by the FinCEN.