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MSB Accounts
Question: A new accounts person opened up an account for a check casher. Our board is worried about the responsibilities with monitoring/due diligence and has decided NOT to have MSB accounts. Can we close this account?
Answer: Yes. Outside of the Americans with Disabilities Act, there is no law requiring the bank to provide accounts to whoever requests one (unlike the Fair Lending laws, which prohibit discrimination). Since the rules regarding amending accounts require 30 days notice, I prefer 30 days notice to the terminated customer. Also, it may be difficult for this business to find another alternative.
Please note that the federal banking regulators have urged banks to not overreact to their guidance on MSB accounts and just refuse to handle these customers. However, they didn't rescind their earlier guidance: http://www.occ.treas.gov/ftp/bulletin/2005-19a.pdf !
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Comments & Questions
If you would like
to comment on legislative topics or if you have questions about this
information please call our public affairs expert, Mae Beth Palone at
(800) 749-4228 or E-mail mbpalone@ibat.org.
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