Florida MSBs face compliance obligations from both FinCEN and the state Office of Financial Regulation. Here's what the OFR requires and how it differs from the federal BSA framework.
Florida MSBs face compliance obligations from both FinCEN/IRS and the state Office of Financial Regulation
Money services businesses operating in Florida face a dual compliance framework: federal BSA requirements administered by FinCEN and the IRS, and state requirements administered by the Florida Office of Financial Regulation. The OFR licenses and examines MSBs operating in Florida, and its requirements in several areas exceed the federal minimum. Florida MSBs that focus exclusively on federal compliance without addressing state requirements are operating with significant regulatory exposure.
OFR licensing requires detailed applications, background checks, surety bonds, and net worth minimums
The OFR's licensing requirements for Florida MSBs are extensive. Check cashers, currency exchangers, and money transmitters must obtain a license from the OFR before operating in Florida. The licensing process requires detailed applications, background checks on principals, surety bond requirements, and net worth minimums. The OFR also requires licensees to maintain a physical presence in Florida and to designate a Florida-based compliance officer.
OFR examinations are more frequent and detailed than federal examinations for most small MSBs
The OFR's examination program for Florida MSBs is more frequent and more detailed than the federal examination program for most small MSBs. OFR examiners conduct annual or biennial examinations of licensed MSBs, reviewing AML programs, transaction records, CTR and SAR filings, and customer identification records. The OFR coordinates closely with FinCEN and the IRS, and examination findings are shared between state and federal regulators.
OFR AML program requirements in several areas exceed the federal minimum
The OFR's AML program requirements in several areas exceed the federal minimum. The OFR expects MSBs to maintain more detailed customer identification records than the federal minimum, to conduct more frequent independent testing than the annual standard, and to maintain more comprehensive transaction monitoring documentation. Florida MSBs that calibrate their programs to the federal minimum may find that they fall short of OFR expectations.
Programs must be designed to meet the higher of federal and state standards simultaneously
The practical approach for Florida MSBs is to build a compliance program that satisfies both federal and state requirements simultaneously. This means understanding the OFR's specific expectations - which are documented in the OFR's examination manual and in guidance published on the OFR's website - and designing your program to meet the higher of the two standards. A compliance consultant with specific Florida MSB experience can help you navigate the dual framework efficiently.
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Compliance Program Specialist · Soflo Consulting
Sofia Delgado is a Compliance Program Specialist at Soflo Consulting with expertise in mortgage lender AML requirements, Florida-specific regulatory obligations, and small business compliance program design. She works with non-bank mortgage lenders, title companies, and real estate professionals to build practical, examiner-ready compliance programs.
5 sections
Key Takeaways
- 1Florida MSBs face compliance obligations from both FinCEN/IRS and the state Office of Financial Regulation
- 2OFR licensing requires detailed applications, background checks, surety bonds, and net worth minimums
- 3OFR examinations are more frequent and detailed than federal examinations for most small MSBs
- 4OFR AML program requirements in several areas exceed the federal minimum
- 5Programs must be designed to meet the higher of federal and state standards simultaneously
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