Complying with regulations is an essential aspect of operating in the banking network. Various entities enforce different rules, such as the NACHA rules by the banking network itself, the Bank Secrecy Act (BSA) by federal and state banking regulators, and anti-money laundering laws for money transmitters.

Non-compliance, whether intentional or accidental, can lead to severe consequences. This article delves into the enforcement of these regulations, the potential impact on businesses, and the steps they should take to ensure compliance.

Learn more about partnering with Asure to provide payroll services to your clients.

Enforcement and Consequences

Enforcement of state money transmission laws is primarily carried out by state regulators. These regulators conduct examinations to ensure businesses’ operations align with the state’s laws and compliance requirements. Failure to comply can result in fines and, in extreme cases, the revocation of the license to operate in that state. It is important to note that enforcement actions in one state may have implications for operations in other states, as the information must be disclosed to all relevant authorities.

The Growing Concern

This article aims to provide crucial information to small businesses and accounting firms involved in payroll and HR services. While the intention is not to instill fear, the increasing complexity of compliance is a pressing issue. Compliance requirements are evolving rapidly, and non-compliance can have serious repercussions. Even established companies like ADP, Paychex, and Asure are grappling with these challenges. However, it is the smaller players, such as regional firms and accounting practices, that may face more significant difficulties due to limited resources.

Taking Compliance Seriously

It is vital for businesses to recognize the gravity of the situation and take proactive steps to ensure compliance. The implications of these regulatory changes are extensive and could potentially force substantial changes in business operations.

For smaller players, surviving under the new regulatory regime may require altering the nature of their business, as the cost of obtaining and maintaining licenses and complying with multiple regulations can be prohibitive. Honesty and understanding the full extent of the challenge is crucial for making informed decisions.

Begin the Investigation

To initiate the compliance process, businesses should first determine where they operate and where their clients are located. Creating a comprehensive list of states involved is essential. Next, it is advisable to directly consult the National Mortgage Licensing System (NMLS) or visit the respective state’s resource center to determine whether a license is required in each state. Relying on third-party resources may lead to outdated or inaccurate information. Given the dynamic nature of these regulations, it is crucial to gather information directly from the states.

Mapping a Compliance Game Plan

After identifying the states where compliance is necessary, businesses should develop a game plan. This involves understanding the specific requirements of each state and ensuring that business practices align with the regulations in those jurisdictions. It is essential to be prepared for enforcement actions, potential fines, and addressing any prior activities conducted without the necessary licenses. Compliance is an ongoing process that requires continuous monitoring and adapting to changing regulations.


Navigating the intricate landscape of compliance in the banking network is a challenge that businesses cannot afford to ignore. The combination of NACHA rules, state regulations, and enforcement actions demands meticulous attention.

While the complexity of these requirements may seem daunting, the goal is to protect employers and employees from fraudulent activities and ensure timely and accurate payroll operations. By recognizing the significance of compliance and taking proactive measures, businesses can mitigate risks and foster trust among their clients and employees.

Learn more about partnering with Asure to provide payroll services to your clients.

Watch our video, NACHA, Bank Secrecy Act, Money Transmitter Law: What Businesses Must Know.

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