The House passed its version of the fiscal year 2021 National Defense Authorization Act (NDAA) Tuesday night with CUNA-supported Bank Secrecy Act modernization language in the bill. Absent from the bill was a provision CUNA, Leagues and credit unions worked to ensure was not placed in the bill, language that would have expanded an exemption from certain fees and costs when operating branches on military installations.
Credit unions are currently eligible for that exemption and CUNA pushed back against efforts to expand the exemption from banks.
“We thank the House for moving along with an NDAA that maintains access to military bases credit unions have earned through decades of service to military members and families. It also contains important BSA modernization language that will help cooperation between law enforcement and financial institutions,” said CUNA President/CEO Jim Nussle.
“CUNA, Leagues and credit unions pushed back against banker calls to expand the military base exemption by continually making sure credit unions’ legacy of member service and not-for-profit nature was brought to the attention to policymakers. We remain concerned that the exemption is expanded in the Senate NDAA, but will continue our advocacy to make sure it is not included in the final version of the bill,” he added.
The BSA modernization language, based on legislation from Reps. Carolyn Maloney (D-N.Y.) and Emanuel Cleaver (D-Mo.), would index the Currency Transaction Report (CTR) threshold for inflation every five year, as well as study the impact of Suspicious Activity Reports (SARs).
The $10,000 threshold has not been adjusted since the enactment of the Bank Secrecy Act in 1970.