WASHINGTON (11/2/15)--The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) should weigh the costs and benefits of its proposal to prescribe minimum standards and reporting requirements, CUNA told the agency in a letter sent Oct. 30.
FinCEN’s proposal would place minimum standards on anti-money laundering (AML) programs established by certain investment advisers, and to require such advisers to report suspicious activity to FinCEN, pursuant to the Bank Secrecy Act (BSA).
“We have some concern that, in situations where an investment adviser is affiliated with, or a subsidiary of, a financial institution there is an obvious risk of duplication of effort on the part of both parties. Such duplication will not only increase the compliance burden but could result in information that is less useful to law enforcement,” the letter reads. “We ask FinCEN to carefully weigh the certain cost of duplicative reporting against any potential benefits of such a requirement.”
CUNA supports FinCEN’s position that an investment adviser affiliated with an entity required to establish an AML program does not have to implement multiple or separate programs as long as the program covers all activities and businesses subject to the BSA.
CUNA also agrees with FinCEN’s position that where more than one investment adviser or financial institution is involved in the same transaction, only one report is required to be filed.
In the letter, CUNA also encouraged FinCEN to work with legislators to “support meaningful legislative and regulatory changes to minimize the costs and problems financial institutions encounter in meeting BSA and AML requirements.”
CUNA supports doubling the Currency Transaction Report threshold to $20,000, up from the current $10,000, and at least doubling other key thresholds, such as the $3,000 trigger for reporting wire transfers and the $5,000 threshold for filing a Suspicious Activity Report.