An arm of the U.S. Treasury Department wants to change the regulations that cover “stored value” cards to keep criminals from using them to finance terrorism and launder money.
The Financial Crimes Enforcement Network has described a stored value card regulatory project in its latest semiannual regulatory agenda report.
FinCen wants to revise the federal Bank Secrecy Act to change the name of “stored value” cards to “prepaid access” cards and find ways to promote development of the industry while discourage wrongdoers from misusing the cards.
Health benefits programs have become major users of stored value cards in recent years. Carriers and benefit plan administrators use the cards to give consumers access to value stored in flexible spending accounts, health reimbursement arrangements, health savings accounts and other personal health and benefits accounts.
FinCen hopes to put out a stored value card notice of proposed rulemaking this month.