Mian, Inc., doing business as Tower Package Store, a money services business (MSB) is learning an expensive of the risks of failing to report cash transactions and other anti-money laundering (AML) requirements of the Bank Secrecy Act (BSA). It’s paying a $45,000 civil monetary penalty for repeatedly violating the currency transaction reporting requirements of the BSA.
The BSA requires MSBs to implement an effective written AML program. Among other things, these requirements include an obligation a requirement to file a report of any currency transaction exceeding $10,000 within 15 days.
According to the Financial Crimes Enforcement Network (FinCEN), Mian repeatedly committed significant and willful violations of the BSA program and reporting requirements and continued to do so even after being put on notice by their examiner, Internal Revenue Service’s Small Business/Self-Employed (IRS SB/SE) Division, of deficiencies in meeting its reporting obligations. FinCEN says Mian provided check cashing services without fulfilling its obligations to report and maintain records on relevant transactions. Mian’s inadequate AML procedures did not ensure the timely and accurate filing of currency transaction reports (CTRs), which it was required to file within 15 days of any currency transaction exceeding $10,000. From December 2010 through November 2011, Mian failed to file CTRs on approximately 40 percent of transactions that required filing. During this time, the CTRs that Mian actually filed were late and inaccurate. Mian’s failure to comply with its CTR obligations persisted even after it was notified by IRS SB/SE of its CTR deficiencies. From December 2011 through November 2013, Mian failed to file timely CTRs on 91 percent of transactions that required filing.
Additionally, FinCEN also says Mian has further failed to meet its deadlines to renew its registration as an MSB.
As part of the settlement resulting in the civil monetary penalty, Mian admits it violated the BSA’s program, reporting and registration requirements, and has consented to FinCEN’s assessment of a civil money penalty of $45,000. For more information, see here.
MSBs and other businesses subject to the BSA should heed the lesson highlighted by the Milan civil money penalty and confirm their account opening and transaction practices comply with the BSA rules and that all reports are timely filed.
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Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization, management attorney and consultant Ms. Stamer is nationally and internationally recognized for more than 24 years of work helping employers and other management; employee benefit plans and their sponsors, administrators, fiduciaries; employee leasing, recruiting, staffing and other professional employment organizations; and others design, administer and defend innovative workforce, compensation, employee benefit and management policies and practices. Her experience includes extensive work helping employers implement, audit, manage and defend union-management relations, wage and hour, discrimination and other labor and employment laws, privacy and data security, internal investigation and discipline and other workforce and internal controls policies, procedures and actions. The Chair of the American Bar Association (ABA) RPTE Employee Benefits & Other Compensation Committee, a Council Representative on the ABA Joint Committee on Employee Benefits, Government Affairs Committee Legislative Chair for the Dallas Human Resources Management Association, and past Chair of the ABA Health Law Section Managed Care & Insurance Interest Group, Ms. Stamer works, publishes and speaks extensively on management, reengineering, investigations, human resources and workforce, employee benefits, compensation, internal controls and risk management, federal sentencing guideline and other enforcement resolution actions, and related matters. She also is recognized for her publications, industry leadership, workshops and presentations on these and other human resources concerns and regularly speaks and conducts training on these matters.Her insights on these and other matters appear in the Bureau of National Affairs, Spencer Publications, the Wall Street Journal, the Dallas Business Journal, the Houston Business Journal, and many other national and local publications. For additional information about Ms. Stamer and her experience or to access other publications by Ms. Stamer see hereor contact Ms. Stamer directly.
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