ExamGecko
Question list
Search
Search

Question 33 - 312-82 discussion

Report
Export

According to FinCEN what dictates the obligations of money transmitters?

A.

The industry designation

Answers
A.

The industry designation

B.

The company stated mission

Answers
B.

The company stated mission

C.

The business model

Answers
C.

The business model

D.

How the company advertises itself

Answers
D.

How the company advertises itself

Suggested answer: C

Explanation:

According to the Financial Crimes Enforcement Network (FinCEN), the obligations of money transmitters are determined primarily by the business model of the company. FinCEN regulations stipulate that companies engaged in money transmission services must comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations, based on how they conduct their business rather than on their industry designation or self-description.

Key Details:

Regulatory Basis: FinCEN's guidelines are focused on the activities of the business---specifically, whether it facilitates the transfer of money or currency on behalf of others. This regulatory approach ensures that companies involved in money transmission are subject to appropriate oversight, regardless of their industry.

Activities Over Labels: Even if a company does not advertise itself as a money transmitter, it may still be subject to FinCEN regulations if its business operations fit the criteria for money transmission services.

Compliance Requirements: Money transmitters must register with FinCEN and implement AML/CTF measures to prevent illicit activities, aligning their compliance obligations with the nature of their operations.

Thus, C. The business model is the correct answer, as FinCEN focuses on the activities a company performs when determining regulatory obligations.

asked 24/10/2024
Chan Sai Yu
43 questions
User
Your answer:
0 comments
Sorted by

Leave a comment first