On April 25, 2014, the Financial Crimes Enforcement Network (“FinCEN”) announced that it has determined that grounds exist to assess a civil money penalty against New Milenium Cash Exchange, Inc. (“NMCE”) a Florida money service business (“MSB”) and its President and Owner, Flor Angella Lopez (“Ms. Lopez”), pursuant to the Bank Secrecy Act (“BSA”) and regulations issued pursuant to that Act.
FinCEN’s investigation revealed that, among other BSA violations, NMCE failed to develop, maintain, and implement an effective written BSA compliance program that adequately addressed NMCE’s obligations under the BSA. Since 2006, the Small Business/Self-Employed Division of the Internal Revenue Service conducted three exams of NMCE that identified repeated violations of the BSA by NMCE. Additionally, the Florida Office of Financial Regulation examined NMCE for BSA compliance and found violations that resulted in a written agreement requiring corrective actions and an administrative fine in 2011.
Under the BSA and the regulations thereunder, an MSB’s written BSA compliance program must, at a minimum: (a) incorporate policies, procedures and internal controls reasonably designed to assure ongoing compliance; (b) designate an individual responsible for assuring day to day compliance with the program and BSA requirements; (c) provide training for appropriate personnel including training in the detection of suspicious transactions; and (d) provide for independent review to monitor and maintain an adequate program.
Now, more than ever, is the time for financial institutions to review and enhance and their Regulatory Compliance Programs to ensure that they comply with legal requirements as well as meet regulator expectations. If you have any questions concerning your Regulatory Compliance Program or the contents of this alert, please contact Greg Bader or Stephanie Quiñones.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication. Gunster, Florida’s law firm for business, provides full-service legal counsel to leading organizations and individuals from its 11 offices statewide. Established in 1925, the firm has expanded, diversified and evolved, but always with a singular focus: Florida and its clients’ stake in it. A magnet for business-savvy attorneys who embrace collaboration for the greatest advantage of clients, Gunster’s growth has not been at the expense of personalized service but because of it. The firm serves clients from its offices in Fort Lauderdale, Jacksonville, Miami, Orlando, Palm Beach, Stuart, Tallahassee, Tampa, The Florida Keys, Vero Beach and its headquarters in West Palm Beach. With more than 160 attorneys and 200 committed support staff, Gunster is ranked among the National Law Journal’s list of the 350 largest law firms. More information about its practice areas, offices and insider’s view newsletters is available at www.gunster.com. |
