MVTS describes a transfer service
FATF uses money or value transfer services, or MVTS, for services that accept value and arrange a corresponding payment to a beneficiary.
The service may use messages, intermediaries or a clearing network. The transferred value need not reach the recipient in the same form.
Source: Financial Action Task Force: Money or value transfer service.
Informal value transfer systems
FinCEN uses IVTS to mean informal value transfer systems. A network receives money so equivalent value can be paid to another person elsewhere.
Transfers generally occur outside conventional banking, although operators can also use banks. The term does not by itself establish illegal activity.
This is a terminology comparison. US licensing and reporting requirements do not determine Australian duties.
Source: Financial Crimes Enforcement Network: Opening explanation and footnote 1.
- MVTS: FATF
Money or value transfer services.
- IVTS: FinCEN
Informal value transfer systems.
- IVTS: Australian Act
International value transfer services under section 45.
Three terms with different scope
Expand the abbreviation before applying a rule. Informal describes a system; international describes the Australian cross-border service condition.
Separate evidence questions. An answer to one does not settle the others.
Australian international value transfer services
Section 45 uses international value transfer service for a service under item 29 or 30 that moves value between Australia and a foreign country.
This Australian legal meaning of IVTS concerns the international transfer. It does not mean the system is informal.
Section 46 reporting has a separate transition. AUSTRAC states that applicable IFTI reporting continues until the entity’s IVTS reporting transition date.
Sources: Australian Government, Federal Register of Legislation: 45 and 46; AUSTRAC: Transition to international value transfer service reporting.
Example: expand the abbreviation first
In a fictional review, a staff member reads a FinCEN note about IVTS and an AUSTRAC notice about IVTS reporting.
The first document concerns informal systems. The second concerns international value transfer services under Australian law.
The reviewer writes each term in full before assessing duties. Using the same abbreviation does not make the two categories identical.
Sources: Financial Crimes Enforcement Network: Footnote 1; Australian Government, Federal Register of Legislation: 45.