What types of financial services providers are considered Money Services Businesses (MSBs)?

Money Services Businesses (MSBs) encompass a specific category of financial service providers engaged in activities that involve currency transmission and exchange. The definition of MSBs, as outlined by the Financial Crimes Enforcement Network (FinCEN), includes entities primarily involved in the buying and selling of currencies, such as currency dealers and money transmitters, as well as check cashers. These types of services are key in the movement and conversion of funds, which is critical for compliance with anti-money laundering (AML) regulations.

The correct answer identifies currency dealers, check cashers, and money transmitters as MSBs because they directly facilitate the transfer or exchange of money. This designation as MSBs subjects them to specific regulatory requirements under the Bank Secrecy Act (BSA), which includes registering with FinCEN and complying with reporting and record-keeping obligations designed to combat money laundering and other financial crimes.

In contrast, the other options provided involve financial services that generally do not fit the MSB category or do not engage in currency-related transactions in a manner that qualifies them as MSBs under the current regulatory framework. This distinction is essential for understanding the scope and regulatory obligations of different types of financial service providers within the context of BSA compliance.