The first Credit Union National Association (CUNA) Regulatory Compliance School of 2016 yielded expert information, networking opportunities and plenty of answers from both regulators and CUNA’s compliance staff. This iteration was held last week at St. Pete’s Beach, Fla., and CUNA’s next Regulatory Compliance School is scheduled for Sept. 25-30 in Tempe, Ariz.
During last week’s sessions, a conversation broke out among attendees about how to detect money services business (MSB) accounts when they are not identified as such upon account opening. There is currently little guidance on this, but attendees offered up a number of best practices.
This includes checking the Treasury’s Financial Crimes Enforcement Network’s MSB registry to see if the account holder is listed as an MSB.
Credit unions should not solely rely on their Bank Secrecy Act software to detect MSB activity. Business account members may not disclose that it will be making regular, large currency transactions and international wire transfers, thus preventing it from being flagged as an MSB.
To help identify MSB accounts, if necessary, credit unions should manually monitor their accounts’ activity to ensure it matches what the members described when opening the account matches their actual activity.
More information from Regulatory Compliance School sessions will be available in the coming days, both on CUNA’s CompBlog and on News Now.
CompBlog also features the latest in compliance issued from CUNA’s compliance staff, and CUNA’s Compliance Community features CompBlog, as well as discussion boards and other resources for credit union compliance professionals.
Registration is currently open for CUNA’s fall Regulatory Compliance School.