WASHINGTON (6/5/15)--A CUNA compliance expert blogged Wednesday about the U.S. Treasury Department's "confidential" report citing credit unions’ “increased vulnerability to potential money laundering” involving money services businesses (MSBs), such as money transmitters and check cashers.
Valerie Moss emphasized that the report didn’t accuse any credit union of wrong-doing and she reminded that credit unions already are cognizant of regulators' concerns. Both the National Credit Union Administration and Treasury's Financial Crimes Enforcement Network (FinCEN) have previously expressed concern about the vulnerability of credit unions if they do not have sufficient scale, internal controls and compliance programs to perform the necessary due diligence on MSBs and to manage high volumes of cash flows.
Moss, who is CUNA senior director of compliance analysis, reminds that there are a number of resources for credit unions to address this compliance challenge. They include:
Also, the NCUA will host a June 17 webinar, "Remittances and Other Money Transfer Services." Topics will include: which countries receive the most money transfers; how to choose the appropriate remittance partner; BSA and other regulatory issues to consider; and where remittances rank in priority for immigrant services.
Moss writes in her CompBlog post, "We all know the scenario. Large banks are turning higher-risk customers like MSBs away. So, where do they take their business? Smaller banks and credit unions."
Therefore, she blogs, "To ensure compliance with BSA regulations, credit unions are expected to assess the risks posed by each individual MSB account on a case-by-case basis, monitor and report any unusual activities, and implement appropriate controls to manage any risk exposure."
CUNA has requested a copy of the report from FinCEN's and will provide updates, as needed.