What federal agency oversees the regulation of MSBs?

The correct choice is FinCEN, which stands for the Financial Crimes Enforcement Network. FinCEN is the primary federal agency responsible for overseeing the regulation and compliance of Money Services Businesses (MSBs) in the United States. Established under the Bank Secrecy Act, FinCEN aims to safeguard the financial system from illicit activities, including money laundering and terrorist financing. It serves as a conduit for collecting and analyzing financial transaction data, ensuring that MSBs comply with anti-money laundering (AML) and reporting requirements.

FinCEN's role includes enforcing compliance requirements such as registration, recordkeeping, and reporting of suspicious activities by MSBs, making it the key regulatory body in this area. The agency provides guidance and regulations that MSBs must follow to operate lawfully and effectively contribute to the prevention of financial crime.

Other agencies mentioned do have important regulatory roles within the broader financial system, but they do not specifically regulate MSBs. For instance, the Federal Reserve primarily oversees monetary policy and the stability of the banking system, while the FDIC focuses on insuring deposits and regulating certain banks. The OCC, or Office of the Comptroller of the Currency, supervises national banks and federal savings associations but does not specifically oversee MSBs. Therefore, the