WASHINGTON (10/6/14)--In response to the U.S. Treasury Financial Crimes Enforcement Network's (FinCEN) proposed changes to due diligence rules, to improve tracking of illegal activities, the Credit Union National Association sent a letter to FinCEN with concerns that the changes would increase the regulatory burden faced by credit unions.
Under FinCEN's proposed rule, the key elements for customer due diligence would include:
While CUNA supports the objective of improving the tracking of money laundering and terrorist financing, it remains concerned that the rule will impose additional compliance costs on credit unions.
"Such costs are likely to outweigh the purported benefits to FinCEN," CUNA Assistant General Counsel Dennis Tsang wrote. "We are especially concerned about the proposed expansion of the 'beneficial ownership' requirements that would result in procedures taking up to 30 minutes or more for each 'legal entity' account opening."
CUNA instead encourages FinCEN to work with federal financial regulators and address specific problem areas and clarify certain Bank Secrecy Act/anti-money laundering (AML) rules.
CUNA also urged FinCEN to:
Use the resource link below to access the full letter.