Industries Served

The industry you are a part of does not matter, the four minimum requirements for your AML Program are basically the same. What we discuss here applies to every industry covered under AML Rules and Regulations.  Even banks have the same requirements since 1970.  There are a few minor differences: one being that MSBs must register with FinCEN every two years (see the MSB page). Another is that only an “Advanced Notice of Proposed Rulemaking” has been issued for businesses engaged in vehicle sales (automobile, airplane, and boat dealers), so at this point in time the automotive industry is not required by law to comply with the minimum requirements.  However, just like all other trade or business, they should have had a comprehensive policies & procedures manual and adequate AML/BSA training since January 1985, when the Form 8300 was first released.

If any business is not complying, especially if required by law to do so, you are placing your financial future in jeopardy and placing it in the hands of your employees and others who have nothing to lose by chasing the money and doing things that could cost your business millions.

Section 352 of the USA PATRIOT Act and 31 USC 5318(h) requires AML Programs for all financial institutions as defined in 31 U.S.C.§ 5312(a)(2). AML Programs are required to include the following four minimum elements:

  • Written and implemented policies, procedures and internal controls based on risk (updated annually);
  • A designated compliance officer responsible for ensuring the AML Program is effectively implemented;
  • Periodic ongoing training (annually) of personnel concerning their responsibilities under the program;
  • Periodic testing (Independent audit/review) (annually) to monitor and maintain an adequate program

The reason we state above that the independent audit and training needs to be conducted annually is because in our experience, that is what most of the banks require and that is what is required (or should be required) by the government (IRS).

What all of this means is, if your industry is listed in 31 USC 5312(a)(2) then you are defined as a financial institution and you either have had or will have “Final AML Rules & Regulations” issued for your industry.  Every industry mentioned on this web site is defined as a financial institution.  FinCEN is required, at some point, to issue Final AML Rules on all industries defined as financial institutions, so if AML Final Rules have not been issued for your industry as of this date, they will be issued at some point.  You will then be required to establish an adequate AML Program with the four minimum requirements.

If required to comply and your business has not had an AML Plan prepared, then you most likely have not had an independent audit/review conducted of your business and therefore have no AML Program.  If that is the case, you have been extremely fortunate that you have not been caught by regulators (IRS) and are taking a huge risk with your financial future.

In addition to my money laundering experience, we have an invaluable amount of experience in the income tax field, especially with respect to criminal income tax cases.

Following is a list of industries with whom NACS has consulted and trained for the past 35+ years.  Click on one of the links for a web page specifically designed for that industry.

Depository institutions, including banks, S&Ls, and credit unions
Precious-metals dealers (to include coin dealers, pawnbrokers and jewelry stores)
Money-services businesses, including:
Check cashers
Issuers, sellers, or redeemers of money orders or travelers’ checks
Money transmitters
Currency exchangers
Stored value
Automobile dealerships
Insurance companies
Securities dealers
Casinos
Attorneys
Pawnbrokers

Registered Investment Advisers