TO: ALL TENNESSEE STATE-CHARTERED BANKS AND TRUST COMPANIES
SUBJECT: Rescission of Guidance Regarding Non-Bank Financial Institution Customers
DATE: June 27, 2005
On February 23, 2005, the Tennessee Department of Financial Institutions issued Bulletin B-05-1 titled "Guidance Regarding Non-Bank Financial Institution Customers". This Bulletin was issued to provide Department guidance on various requirements of the Bank Secrecy Act and its implementing regulations concerning non-bank financial institutions, primarily money services businesses. On April 26, 2005, the federal financial institution regulatory agencies issued guidance titled "Interagency Interpretive Guidance on Providing Banking Services to Money Services Businesses Operating in the United States" which can be found at http://www.fincen.gov/guidance04262005.shtml. This new guidance sets forth the minimum steps that banking organizations should take when providing banking services to money services business. This guidance is comprehensive and clarifies what is expected of banks. Therefore, in order to prevent any confusion, Bulletin B-05-1 is hereby rescinded effective this date.
We continue to work closely with federal regulatory agencies to conduct Bank Secrecy Act assessments during each safety and soundness examination and will continue to assist state-chartered banks with regulatory compliance efforts.�Guidance concerning entities that have registered with FinCEN as money service business can be found at http://www.msb.gov/index.shtml.
Additional information concerning state licensed and regulated nonbank financial institutions can be found at http://www.tn.gov/tdfi/compliance/compindex.shtml or by contacting Director of Licensing Steve Henley at 615-741-3186.
The Department remains accessible to provide assistance and support with BSA compliance issues. Questions may be addressed to any of our examination personnel or to Financial Analyst Justin McClinton at 615-532-1021. Any questions requiring interpretation or opinion concerning the federal interagency guidance should be addressed to your primary federal regulator.
Kevin P. Lavender