Agencies issue guidance on CIP for prepaid programs

The Agencies have made clear that the money laundering and other financial crime risks faced by banks that issue prepaid cards and process prepaid card transactions require the implementation of strong and effective mitigating controls. Controls put in place by issuing banks and the prepaid card industry, such as limits on card value and the frequency and amount of transfers, as well as appropriate due diligence on third parties and cardholders, have helped mitigate these risks.