No Fee for Registering with FinCEN: Myth Busters!

The world of financial regulations can be a labyrinth, and the question of fees pops up frequently. When it comes to registering with the Financial Crimes Enforcement Network (FinCEN), a common misconception circulates: there’s a fee involved. But relax, aspiring Money Services Business (MSB) owner, registering with FinCEN is completely free.

Here’s why:

FinCEN’s purpose is to prevent financial crime, such as money laundering and terrorist financing. Registration helps them keep track of legitimate MSBs and facilitate compliance with anti-money laundering (AML) regulations.

Charging a fee would discourage legitimate businesses from registering, potentially pushing them into the shadows and hindering FinCEN’s efforts.

FinCEN is funded by the US Treasury Department, so taxpayers already foot the bill for its operations.

So, how do you register?

Gather your documentation: You’ll need information like your business name, address, type of MSB activities, and ownership structure.

Complete FinCEN Form 107: This form is available online and relatively straightforward.

Submit your registration electronically: The BSA E-Filing System is your platform for a digital and timely process.

Remember:

State licenses are separate: While FinCEN registration is free, some states require additional licenses or permits for MSBs. Check your local regulations.

Compliance is key: Once registered, you’re responsible for meeting AML/CFT obligations, including filing reports and implementing effective internal controls.

Conclusion:

Don’t let the fear of a fee hold you back. Registering with FinCEN is a crucial step for operating a legitimate MSB and doing your part to combat financial crime. It’s free, fast, and essential for compliance. So, take a deep breath, gather your papers, and dive into the world of regulated financial services!

P.S. Need more information? FinCEN’s website is a treasure trove of resources! Just visit https://www.fincen.gov/.

Note: I’ve written this article assuming you’re in the United States, as FinCEN regulations are specific to the US. Always confirm local regulations before starting your MSB journey.

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This page was last updated on January 21, 2024.

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