The current regulatory regime makes Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance daunting for community financial institutions like credit unions, a CUNA witness told a House subcommittee Wednesday. Faith Anderson, senior vice president and general counsel of American Airlines FCU, Fort Worth, Texas, addressed the credit union perspective on behalf of CUNA on BSA/AML compliance Wednesday before the House Financial Services subcommittee on financial institutions and consumer credit.
"While credit unions support laws and regulations that prevent terrorists and criminals from using their institutions to launder money or otherwise engage in illegal activity, the compliance burden of the current regulatory environment often unnecessarily takes away from our ability to serve our members," Anderson said. "Since the 2008 economic crisis and the resulting regulations that followed, credit unions have been required to devote more resources for regulatory and legal compliance particularly for mortgage loans and other consumer products, services, and protections.
"Given these new requirements, it has become difficult for credit unions to absorb their current total compliance burden," Anderson added.
Anderson stressed the importance of finding the right balance between the benefits that come with BSA/AML regulations and costs to credit unions and other financial institutions.
Specifically, CUNA supports changes to: