Proposed Amendments to the Regulations Accordingly, 31 CFR part 103 is proposed to be amended as follows: PART 103--FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND FINANCIAL TRANSACTIONS 1. The authority citation for part 10 is revised to read as follows: Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314, 5316-5332; title III, secs. 311, 312, 313, 314, 319, 326, 352, Public Law 107-56, 115 Stat. 307. 2. Section 103.11 is amended as follows: a. Adding paragraph (i); b. Revising paragraph (uu) introductory text; c. Revising paragraph (uu)(1); d. Revising paragraph (uu)(2); e. Revising paragraph (uu)(3); f. Revising paragraph (uu)(4); g. Revising paragraph (uu)(5); h. Adding paragraph (uu)(7). Sec. 103.11 Meaning of terms. * * * * * (i) Closed loop stored value. Stored value that is limited to a defined merchant or location (or set of locations), such as a specific retailer or retail chain, a college campus, or a subway system. * * * * * (uu) Money services business. The term ``money services business'' shall include a person wherever located engaged in activities that take place wholly or in substantial part within the United States, in one or more of the capacities listed in paragraphs (uu)(1) through (uu)(6) of this section, whether or not on a regular basis or as an organized business concern. This includes but is not limited to maintenance of any agent, agency, branch, or office within the United States. (1) Dealer in foreign exchange. A person who accepts the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more countries in exchange for the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more other countries in an amount greater than $1,000 for any other person on any day in one or more transactions, whether or not for same-day delivery. (2) Check casher--(i) In general. A person that accepts checks (as defined in the Uniform Commercial Code [U.C.C. Article 3--Negotiable Instruments Sec. 3-104]), or monetary instruments (as defined at Sec. 103.11(u)(1)(ii), (iii), (iv), and (v)) in return for currency or a combination of currency and other monetary instruments or other instruments, in an amount greater than $1,000. (ii) Facts and circumstances; Limitations. Whether a person is a check casher as described in this section is a matter of facts and circumstances. The term ``check casher'' shall not include: (A) A person that sells closed loop stored value purchased with a check, monetary instrument or other instruments as referenced above in this definition; (B) A person that solely accepts monetary instruments as payment for goods or services other than check cashing services; (C) A person that engages in check cashing for the verified maker of the check who is a customer otherwise buying goods and services; (D) A person that redeems its own checks; or (E) A person that only holds a customer's check as collateral for repayment by the customer of a loan. (3) Issuers and sellers of traveler's checks or money orders. A person that: (i) Issues traveler's checks or money orders that are sold in an amount greater than $1,000 for any person on any day in one or more transactions; or (ii) Sells traveler's checks or money orders in an amount greater than $1,000 for any person on any day in one or more transactions. (4) Issuer, seller, or redeemer of stored value. A person that: (i) Issues stored value (other than a person that does not issue such stored value in an amount greater than $1,000 to any person on any day in one or more transactions); or (ii) Sells or redeems stored value (other than a person that does not sell or redeem such stored value for an amount greater than $1,000 from any person on any day in one or more transactions). [[Page 22142]] (5) Money transmitter--(i) In general. A person that provides money transmission services. The term ``money transmission services'' means the acceptance of currency, funds, or other value that substitutes for currency from one person AND the transmission of such currency, funds, or the value to another location or person by any means. ``Any means'' includes through a financial agency or institution; a Federal Reserve Bank or other facility of one or more Federal Reserve Banks, the Board of Governors of the Federal Reserve System, or both; or an electronic funds transfer network. (ii) Facts and circumstances; Limitations. Whether a person is a money transmitter as described in this section is a matter of facts and circumstances. The term ``money transmitter'' shall not include a person that only: (A) Provides the delivery, communication, or network access services used by a money transmitter to support money transmission services; (B) Acts as a payment processor to facilitate the purchase or payment of a bill for a good or service through a clearance and settlement system by agreement with the creditor or seller; (C) Operates a clearance and settlement system or otherwise acts as an intermediary solely between BSA regulated institutions. This includes but would not be limited to the Fedwire system, electronic funds transfer networks, certain registered clearing agencies regulated by the SEC, and derivatives clearing organizations, or other clearinghouse arrangements established by a financial agency or institution; (D) Provides closed loop stored value; (E) Physically transports currency, other monetary instruments, other commercial paper, or other value that substitutes for currency as a person engaged in such business from one person to the same person at another location or to an account belonging to the same person at a financial institution, provided that the person engaged in physical transportation has no more than a custodial interest in the currency, other monetary instruments, other commercial papers, or other value at any point during the transportation; or (F) Accepts and transmits funds only integral to the sale of goods or the provision of services, other than money transmission services, by the person who is accepting and transmitting the funds. * * * * * (7) Limitation. For the purposes of this section, the term ``money services business'' shall not include: (i) A bank; (ii) A person registered with, and functionally regulated or examined by, the Securities and Exchange Commission or the Commodity Futures Trading Commission. * * * * * 3. Section 103.41 is amended by redesignating paragraphs (a)(2) and (a)(3) as paragraphs (a)(3) and (a)(4) respectively, and adding new paragraph (a)(2) to read as follows: Sec. 103.41 Registration of money services businesses. (a) * * * (2) Foreign-located money services business. Each foreign-located person engaged in activities in the United States as a money services business shall designate the name and address of a person who resides in the United States and is authorized, and has agreed to be an agent to accept service of legal process with respect to compliance with this part and shall identify the address of the location within the United States for records pertaining to paragraph (b)(1)(iii) of this section. * * * * * Dated: May 5, 2009. James H. Freis, Jr., Director, Financial Crimes Enforcement Network. [FR Doc. E9-10864 Filed 5-11-09; 8:45 am] BILLING CODE 4810-02-P