I 

111TH CONGRESS 

1ST SESSION H. R. 2893 

To amend section 5318 of title 31, United States Code, to eliminate regulatory burdens imposed on insured depository institutions and money 

services businesses and enhance the availability of transaction accounts 

at depository institutions for such business, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 16, 2009 

Mrs. MALONEY (for herself, Mr. BACHUS, Mr. GUTIERREZ, Mr. HENSARLING, 

and Mrs. BIGGERT) introduced the following bill; which was referred to 

the Committee on Financial Services 

A BILL 

To amend section 5318 of title 31, United States Code, 

to eliminate regulatory burdens imposed on insured depository institutions and money services businesses and 

enhance the availability of transaction accounts at depository institutions for such business, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Money Service Busi5 ness Act of 2009’’. 


tjames on PRODPC75 with BILLS
2 

•HR 2893 IH

1 SEC. 2. FINDINGS. 

2 The Congress finds as follows: 

3 (1) Check cashers, money transmitters, and 

4 other legally authorized and regulated money trans5 mitting businesses (also designated as money serv6 ices businesses) provide a wide range of necessary fi7 nancial services and products to customers from all 

8 walks of life, including the under-banked and urban 

9 communities. 

10 (2) Those services include domestic and inter11 national funds transfers, check cashing, money order 

12 and traveler’s check sales, and electronic bill pay13 ments. 

14 (3) Regulatory guidance issued by, and expecta15 tions of, the Federal banking agencies and the Sec16 retary of the Treasury urge insured depository insti17 tutions to conduct reviews of money services busi18 nesses’ anti-money laundering compliance programs, 

19 placing such depository institutions in the position of 

20 quasi-regulators. 

21 (4) Consequently, many insured depository in22 stitutions have refused or closed money services 

23 businesses’ accounts in order either not to incur the 

24 burden, risk or potential liability for undertaking a 

25 de facto regulatory function, or else to avoid super26 visory sanctions for not exercising such oversight. 


tjames on PRODPC75 with BILLS
3 

•HR 2893 IH

1 (5) This trend endangers the existence of legiti2 mate, regulated money services businesses’ industry 

3 and the ability of such businesses to deliver financial 

4 services and products. 

5 (6) Loss of depository institution accounts by 

6 money services businesses threatens to drive the cus7 tomer transactions of such businesses underground 

8 through unregulated channels, including bulk cash 

9 smuggling or other means. 

10 (7) It is critical to the interests of national se11 curity that transparency of money services busi12 nesses’ transactions be maintained by ensuring such 

13 businesses have a reasonable process to demonstrate 

14 to insured depository institutions the compliance by 

15 such businesses with anti-money laundering and 

16 counter-terrorism financing obligations. 

17 (8) Money services businesses are subject to 

18 Federal money laundering and terrorist financing 

19 control programs and reporting requirements as en20 forced by State and Federal regulators, including 

21 the Secretary of the Treasury, which are authorized 

22 to conduct compliance oversight and to impose sanc23 tions through licensing, registration or other powers. 

24 (9) These State and Federal regulators have 

25 committed to coordinate their supervision and enVerDate Nov 24 2008 00:49 Jun 18, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2893.IH H2893

tjames on PRODPC75 with BILLS
4 

•HR 2893 IH

1 forcement of such money services businesses’ obliga2 tions. 

3 (10) Insured depository institutions and Fed4 eral banking regulators should be able to rely on a 

5 regulatory process for conducting oversight of money 

6 services businesses’ compliance with subchapter II of 

7 chapter 53 of title 31, United States Code, as well 

8 as on a process of self-certification by legitimate 

9 money services businesses that attest to such compli10 ance. 

11 (11) Accordingly, to eliminate regulatory bur12 den imposed on insured depository institutions and 

13 promote access by money services businesses to the 

14 banking system and to give full recognition to Fed15 eral and State agency authority to supervise and en16 force money services businesses’ compliance with 

17 anti-money laundering and counter-terrorism financ18 ing obligations and their implementing regulations, 

19 it is appropriate and necessary to provide for the 

20 self-certification process established pursuant to this 

21 Act. 


tjames on PRODPC75 with BILLS
5 

•HR 2893 IH

1 SEC. 3. SELF-CERTIFICATION PROCESS FOR MONEY SERV2 ICES BUSINESSES ESTABLISHED. 

3 (a) IN GENERAL.—Section 5318(h) of title 31, 

4 United States Code, is amended by adding at the end the 

5 following new paragraphs: 

6 ‘‘(4) MONEY TRANSMITTING BUSINESS AC7 COUNTS.— 

8 ‘‘(A) IN GENERAL.—A federally insured 

9 depository institution that maintains an account 

10 for a money transmitting business (as defined 

11 in section 5330(d)(1)) shall have no obligation 

12 to review the compliance of that business, or 

13 any agent thereof, with that business’s or 

14 agent’s obligations under this section, if the in15 stitution has on file— 

16 ‘‘(i) a certification submitted by the 

17 money transmitting business that meets 

18 the requirements of paragraph (5)(A); or 

19 ‘‘(ii) in the case of an agent of a 

20 money transmitting business— 

21 ‘‘(I) the certification required 

22 under paragraph (5)(B); and 

23 ‘‘(II) a certification from the 

24 business that the named agent is au25 thorized to act as the principal’s 

26 agent. 


tjames on PRODPC75 with BILLS
6 

•HR 2893 IH

1 ‘‘(B) PENALTIES.— 

2 ‘‘(i) CIVIL PENALTIES.—A money 

3 transmitting business or an agent of any 

4 such business making a material misrepre5 sentation in a certification referred to in 

6 subparagraph (A) shall be subject to the 

7 civil penalties prescribed under section 

8 5321 without regard to whether such viola9 tion was willful. 

10 ‘‘(ii) CRIMINAL PENALTIES.—A per11 son who knowingly makes a material mis12 representation in a certification referred to 

13 in subparagraph (A) shall be subject to 

14 penalties prescribed under section 5322 

15 without regard to whether such violation 

16 was willful. 

17 ‘‘(C) RULE OF CONSTRUCTION.—No provi18 sion of this paragraph shall be construed as re19 quiring any federally insured depository institu20 tion to establish, maintain, administer or man21 age an account for a money transmitting busi22 ness or an agent of any such business. 

23 ‘‘(D) RELIANCE FOR INSURED DEPOSI24 TORY INSTITUTIONS.—A federally insured de25 pository institution shall have no liability under 


tjames on PRODPC75 with BILLS
7 

•HR 2893 IH

1 this chapter for the failure of any money trans2 mitting business or an agent of any such busi3 ness to comply with any provision of this sec4 tion and regulations prescribed under any such 

5 provision. 

6 ‘‘(E) FEDERALLY INSURED DEPOSITORY

7 INSTITUTION DEFINED.—The term ‘federally 

8 insured depository institution’ means any in9 sured depository institution (as defined in sec10 tion 3 of the Federal Deposit Insurance Act) 

11 and any insured credit union (as defined in sec12 tion 101(7) of the Federal Credit Union Act). 

13 ‘‘(5) PARAGRAPH (4) CERTIFICATION.— 

14 ‘‘(A) MONEY TRANSMITTING BUSINESS.— 

15 A certification by a money transmitting busi16 ness meets the requirement of paragraph (4) if 

17 the money transmitting business certifies as fol18 lows, to the satisfaction of the Secretary: 

19 ‘‘(i) The business is in compliance 

20 with paragraph (1) and regulations pre21 scribed by the Secretary under such para22 graph. 

23 ‘‘(ii) The business maintains an anti24 money laundering program covering all of 

25 the identified capacities through which the 


tjames on PRODPC75 with BILLS
8 

•HR 2893 IH

1 business acts as a money transmitting 

2 business that includes the components of 

3 the program specified in subparagraphs 

4 (A) through (D) of paragraph (1). 

5 ‘‘(iii) The business is licensed or reg6 istered as a money transmitting business 

7 by each State— 

8 ‘‘(I) within which the business 

9 operates as a money transmitting 

10 business; and 

11 ‘‘(II) which requires such licens12 ing or registration. 

13 ‘‘(iv) The business is registered with 

14 the Secretary in accordance with section 

15 5330, and regulations prescribed under 

16 such section, and remains in full compli17 ance with such section and regulations. 

18 ‘‘(B) AGENTS OF A MONEY TRANSMITTING

19 BUSINESS.—A certification by an agent of a 

20 money transmitting business meets the require21 ment of paragraph (4) if the agent certifies as 

22 follows, to the satisfaction of the Secretary: 

23 ‘‘(i) The agent is an agent of a money 

24 transmitting business that meets the reVerDate Nov 24 2008 00:49 Jun 18, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2893.IH H2893

tjames on PRODPC75 with BILLS
9 

•HR 2893 IH

1 quirements of clauses (i) through (iv) of 

2 subparagraph (A). 

3 ‘‘(ii) If applicable, the agent appears 

4 on the list of agents of the money trans5 mitting business maintained by the busi6 ness pursuant to section 5330(c)(1). 

7 ‘‘(iii) The agent— 

8 ‘‘(I) operates as an agent for a 

9 money transmitting business pursuant 

10 to a written contract; 

11 ‘‘(II) will act honestly and in 

12 compliance with all applicable laws 

13 when conducting any business as an 

14 agent for a money transmitting busi15 ness; and 

16 ‘‘(III) will immediately notify any 

17 federally insured depository institution 

18 to which the certification is submitted 

19 of the occurrence of any material 

20 change in the relationship of the 

21 agent with the money transmitting 

22 business, including termination or 

23 suspension, or the institution of any 

24 criminal or administrative proceeding 

25 commenced against the agent. 


tjames on PRODPC75 with BILLS
10 

•HR 2893 IH

1 ‘‘(iv) The agent is licensed or reg2 istered as a money transmitting business, 

3 or as an agent of such business, by any 

4 State— 

5 ‘‘(I) within which the agent oper6 ates as an agent of a money transmit7 ting business; and 

8 ‘‘(II) which requires any such li9 censing or registration. 

10 ‘‘(v) The agent is not required to be 

11 registered with the Secretary as a money 

12 transmitting business pursuant to regula13 tions prescribed by the Secretary under 

14 section 5330(c)(2).’’. 

15 (b) REGULATIONS.—The Secretary of the Treasury 

16 shall prescribe such regulations as the Secretary deter17 mines to be appropriate to implement the amendments 

18 made by subsection (a), in final form, before the end of 

19 the 120-day period beginning on the date of the enactment 

20 of this Act. 

Æ 


tjames on PRODPC75 with BILLS