Regulating the flow of money and ensuring the security and validity of money transfers are core challenges for professionals in the legal and financial industries. Jeff Barringer, Amy Greenwood-Field, and Aaron Kouhoupt — attorneys at McGlinchey Stafford — recently drew attention to the latest developments concerning money transmission laws in their discussion for McGlinchey’s Deep Dive into Payments Series.
The conversation majorly revolved around the impacts of money transmission laws on professionals working in the payments space, specifically those who find their operations integrated within fund flows or providing any payment services to third parties. It is indeed essential to understand how such laws impact businesses, especially as the interface between law and technology continues to broaden.
According to Barringer, Greenwood-Field, and Kouhoupt, the Model Money Transmission Modernization Act (MMTMA) forms a significant portion of current discourse in this area. The MMTMA is designed to provide a comprehensive legal framework aimed at modernizing the regulation of money transmission. This body of law comes into play whenever there is a question around the movement of money, thus directly influencing businesses involved in these activities.
The other significant feature of the conversation was the discussion on FinCEN regulation exemptions. The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of the Treasury that combats money laundering and promotes national security through the collection, analysis, and dissemination of financial intelligence. Therefore, understanding the nuances of its exemptions is crucial for legal professionals handling financial transactions that might fall under the oversight of this bureau.
The experts also outlined options for startups and made it clear that a thorough understanding of monetary transmission laws is not only crucial to maintaining compliance but can also serve as a strategic advantage in a competitive space.
The full details of the discussion are available here. It’s highly recommended for anyone looking to keep up to speed on the current legal outlook regarding money transmission.
As corporations and law firms grow more intertwined with the expanding and highly dynamic world of fintech, becoming intimately familiar with the latest developments and potential changes in the realm of money transmission laws is non-optional for professionals in this sector.