October 18, 2011 –
FinCEN Proposes Reporting Requirement of International Transport of Prepaid Access Devices

The Financial Crimes Enforcement Network (“FinCEN”) has recently issued a Notice of Proposed Rulemaking (“Proposed Rule”) to add certain tangible prepaid access devices to the list of monetary instruments to be reported when transported into or out of the United States.  Current regulations require that a Currency and Monetary Instrument Report (CMIR) be filed regarding the international transportation, mail or shipment of currency or other monetary instruments (currently defined as coin or currency, traveler’s checks, checks, promissory notes, money orders in bearer form and bearer bonds, among others) in an aggregate amount that exceeded $10,000.

The Proposed Rule would include prepaid access devices such as general use prepaid cards, certain gift cards and potentially cell phones to the list of other monetary instruments that must be aggregated with respect to the $10,000 threshold.  The Proposed Rule intends to address prepaid access devices that can be used as a substitute for currency, as these provide access to funds by any bearer of the device.  Further, the features of such products may enable the anonymous transfer or concealed transport of illicit funds across the U.S. border.

Please note that under the Proposed Rule excludes cards, debit cards, codes and personal identification numbers, items like computers, web enabled cell phones and other devices that are not dedicated to accessing specific prepaid funds from the list of monetary instruments.

To read a complete copy of the Notice on the FinCEN website, click here.