Supervisory Frameworks for Money Service Businesses (MSBs) and NBFIs

Financial Regulation and Operational Excellence November 30, 2025
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Introduction

This comprehensive course provides an in-depth examination of supervisory frameworks specifically designed for Money Service Businesses and Non-Bank Financial Institutions. Participants will explore the unique regulatory challenges posed by these entities, including their diverse business models, technological innovations, and cross-border operations. The curriculum covers international standards from FATF, Basel Committee, and other global regulatory bodies while addressing practical implementation challenges. Through case studies and practical exercises, learners will develop the skills to design, implement, and enhance effective supervisory frameworks that balance financial innovation with robust risk management and compliance requirements.

Objectives

Upon completion, participants will be able to:

  • Understand international regulatory standards for MSBs and NBFIs
  • Design risk-based supervisory frameworks tailored to different institution types
  • Implement effective licensing and registration processes
  • Conduct comprehensive risk assessments of MSB operations
  • Develop supervisory examination methodologies
  • Apply enforcement actions and corrective measures
  • Monitor compliance with anti-money laundering requirements
  • Assess technological risks in digital payment services
  • Coordinate with other domestic and international regulators
  • Evaluate emerging risks in the non-bank financial sector

Target Audience

  • Financial regulatory agency staff
  • Central bank supervision departments
  • MSB compliance officers and managers
  • Risk management professionals in NBFIs
  • Financial intelligence unit analysts
  • Consultants specializing in financial regulation
  • Internal audit professionals in payment institutions
  • Legal counsel for financial institutions

Methodology

  • Case studies of supervisory failures and successes
  • Group exercises developing examination plans
  • Role-playing supervisory interviews
  • Individual risk assessment assignments
  • Regulatory scenario analysis
  • Peer discussions on enforcement dilemmas
  • Template development workshops

Personal Impact

  • Enhanced understanding of international supervisory standards
  • Improved risk assessment and analytical skills
  • Stronger examination and investigation techniques
  • Increased confidence in enforcement decision-making
  • Better regulatory judgment and discretion
  • Expanded professional network in financial supervision

Organizational Impact

  • More effective and efficient supervisory processes
  • Reduced systemic risk in financial sector
  • Improved compliance culture across regulated entities
  • Enhanced international regulatory cooperation
  • Stronger financial system integrity and stability
  • Better resource allocation through risk-based approaches

Course Outline

Regulatory Foundations

International Standards
  • FATF recommendations for MSBs
  • Basel Committee guidance on NBFI supervision
  • Core Principles for Effective Banking Supervision
  • Regional regulatory frameworks and variations
Legal Framework
  • Licensing and registration requirements
  • Legal powers of supervisors
  • Enforcement authority and limitations
  • Cross-border regulatory cooperation

Risk Assessment Methodologies

Institutional Risk Profiling
  • Risk rating systems for MSBs
  • Business model risk analysis
  • Ownership and control structure assessment
  • Geographic risk factors
Product Risk Analysis
  • Money transfer risk assessment
  • Currency exchange risk factors
  • Payment instrument risks
  • New product approval processes

Supervisory Processes

Examination Planning
  • Risk-based examination scheduling
  • Scope determination methodologies
  • Resource allocation for supervision
  • Examination program development
On-site Examination Techniques
  • Documentation review procedures
  • Transaction testing methodologies
  • Management interview protocols
  • Control environment assessment

AML/CFT Supervision

Compliance Framework Assessment
  • AML program evaluation
  • Customer due diligence requirements
  • Transaction monitoring systems
  • Suspicious activity reporting

Enforcement and Remediation

Corrective Actions
  • Supervisory findings communication
  • Remedial action planning
  • Progress monitoring techniques
  • Escalation procedures
Enforcement Tools
  • Administrative penalties and fines
  • License suspension and revocation
  • Cease and desist orders
  • Civil and criminal referrals

Emerging Challenges

Technology and Innovation
  • Digital payment supervision
  • Fintech and regtech applications
  • Cybersecurity oversight
  • Virtual asset service provider regulation

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