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Can you summarize Risks Associated with Money Laundering and Terrorist Financing > Privately Owned Automated Teller Machines (2014)?
Risks Associated with Money Laundering and Terrorist Financing > Privately Owned Automated Teller Machines (2014)
Short Summary
This document focuses on assessing the adequacy of a bank’s systems to manage the risks associated with privately owned ATMs and ISO relationships. Privately owned ATMs, often found in convenience stores, bars, restaurants, grocery stores, or check cashing establishments, are susceptible to money laundering and fraud. ISOs, acting as agents for merchants and ATM owners, process electronic transactions. Due to the lack of registration, ownership limits, monitoring, or examination of privately owned ATMs and ISOs in most states, they pose increased risks. Banks are advised to implement appropriate policies, procedures, and processes to address these risks, including risk-based due diligence, monitoring, and suspicious activity reporting. The document provides specific examination procedures to assess the adequacy of a bank’s systems and controls related to privately owned ATMs and ISO relationships.
Whom does it apply to?
Banks doing business with privately owned ATMs and ISOs
What does it govern?
Privately owned automated teller machines (ATMs) and Independent Sales Organization (ISO) relationships
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government