[Code of Federal Regulations]
[Title 31, Volume 1]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR103.125]

[Page 387-388]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
                       DEPARTMENT OF THE TREASURY
 
PART 103--FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND FOREIGN TRANSACTIONS--Table of Contents
 
                Subpart I--Anti-Money Laundering Programs
 
Sec. 103.125  Anti-money laundering programs for money services businesses.

    (a) Each money services business, as defined by Sec. 103.11(uu), 
shall develop, implement, and maintain an effective anti-money 
laundering program. An effective anti-money laundering program is one 
that is reasonably designed to prevent the money services business from 
being used to facilitate money laundering and the financing of terrorist 
activities.
    (b) The program shall be commensurate with the risks posed by the 
location and size of, and the nature and volume of the financial 
services provided by, the money services business.
    (c) The program shall be in writing, and a money services business 
shall make copies of the anti-money laundering program available for 
inspection to the Department of the Treasury upon request.
    (d) At a minimum, the program shall:
    (1) Incorporate policies, procedures, and internal controls 
reasonably designed to assure compliance with this part.
    (i) Policies, procedures, and internal controls developed and 
implemented under this section shall include provisions for complying 
with the requirements of this part including, to the extent applicable 
to the money services business, requirements for:
    (A) Verifying customer identification;
    (B) Filing reports;
    (C) Creating and retaining records; and
    (D) Responding to law enforcement requests.

[[Page 388]]

    (ii) Money services businesses that have automated data processing 
systems should integrate their compliance procedures with such systems.
    (iii) A person that is a money services business solely because it 
is an agent for another money services business as set forth in 
Sec. 103.41(a)(2), and the money services business for which it serves 
as agent, may by agreement allocate between them responsibility for 
development of policies, procedures, and internal controls required by 
this paragraph (d)(1). Each money services business shall remain solely 
responsible for implementation of the requirements set forth in this 
section, and nothing in this paragraph (d)(1) relieves any money 
services business from its obligation to establish and maintain an 
effective anti-money laundering program.
    (2) Designate a person to assure day to day compliance with the 
program and this part. The responsibilities of such person shall include 
assuring that:
    (i) The money services business properly files reports, and creates 
and retains records, in accordance with applicable requirements of this 
part;
    (ii) The compliance program is updated as necessary to reflect 
current requirements of this part, and related guidance issued by the 
Department of the Treasury; and
    (iii) The money services business provides appropriate training and 
education in accordance with paragraph (d)(3) of this section.
    (3) Provide education and/or training of appropriate personnel 
concerning their responsibilities under the program, including training 
in the detection of suspicious transactions to the extent that the money 
services business is required to report such transactions under this 
part.
    (4) Provide for independent review to monitor and maintain an 
adequate program. The scope and frequency of the review shall be 
commensurate with the risk of the financial services provided by the 
money services business. Such review may be conducted by an officer or 
employee of the money services business so long as the reviewer is not 
the person designated in paragraph (d)(2) of this section.
    (e) Effective date. A money services business must develop and 
implement an anti-money laundering program that complies with the 
requirements of this section on or before the later of July 24, 2002, 
and the end of the 90-day period beginning on the day following the date 
the business is established.

[67 FR 21116, Apr. 29, 2002]