The nation’s leading organization of Korean American grocers, the National Korean American Grocers Association (National KAGRO), is working with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to combat money laundering, terrorist financing and other financial crimes.

National KAGRO is cooperating in a campaign by FinCEN to inform money services businesses (MSBs) about federal requirements, including the reporting of suspicious activities, under the Bank Secrecy Act (BSA).

MSBs are businesses that offer money orders, traveler's checks, money transfers, check cashing, or currency exchange services. They include establishments such as grocery stores that offer these services in addition to their primary line of business.

With 23,000 members, National KAGRO is considered the largest Korean American trade organization. Although Korean Americans represent less than one per cent of the U.S. population, they own 11 percent of U.S. retail grocery outlets, many of which are MSBs.

Patrice Motz, of FinCEN’s Office of Compliance and Regulatory Enforcement, spoke today to the Board of National KAGRO about reporting and other requirements that MSBs are obliged to follow.

“The nation’s efforts to combat money laundering and terrorist financing are more critical than ever, and MSBs play a vital role,” Motz said. “The National KAGRO is providing an important service by helping us inform KAGRO members about the BSA requirements and how to comply with them.”

Said Andrew Ku, National KAGRO President: “KAGRO is pleased to have the opportunity to work with FinCEN and educate our members across the United States about the MSB requirements. Many of our Korean American grocers provide money services, and I know that they will understand the importance of complying with the law to help deter financial crimes.”

In her remarks, Motz noted that the new BSA requirements oblige some stores offering money service products to report suspicious transactions to FinCEN. In addition, certain MSBs must register with the government and maintain a list of agents.

Also, under amendments to the BSA passed by Congress last year, and implementing regulations issued in April, all MSBs must put into place anti-money-laundering programs. Each program must include policies, procedures and internal controls; designation of a compliance officer; an ongoing training program; and an independent review function to test the program.

Later this summer, FinCEN will offer free materials such as posters, booklets and handouts to businesses interested in learning more about the new requirements and how to comply with them. FinCEN has established a web site to provide information and an easy way for businesses to order materials. For more information, MSBs and others are encouraged to visit www.msb.gov.