CUNA supports a Financial Crimes Enforcement Network (FinCEN) risk-assessment process and publication of national anti-money laundering (AML) priorities but cautions against the use of one-size-fits-all regulatory requirements. FinCEN issued an Advance Notice of Proposed Rulemaking on AML program effectiveness.

“CUNA strongly supports FinCEN’s efforts to track and investigate financial crimes involving money laundering and terrorist financing and agrees that AML regulatory changes that eliminate redundancies and unnecessary burdens will help credit unions and other covered institutions streamline and focus their compliance efforts,” the letter reads. “Nevertheless, it is critically important to strike the right balance between the imposition of compliance costs on leanly staffed, community-oriented credit unions and the benefits that AML programs can provide to law enforcement.”

According to the proposal, an “effective and reasonably designed” AML program can be broadly defined as one that:

• Identifies, assesses, and reasonably mitigates the risks resulting from illicit financial activity—including terrorist financing, money laundering, and other related financial crimes—consistent with both the institution’s risk profile and the risks communicated by relevant government authorities as national AML priorities;
• Assures and monitors compliance with the recordkeeping and reporting requirements of the BSA; and
• Provides information with a high degree of usefulness to government authorities consistent with both the institution’s risk assessment and the risks communicated by relevant government authorities as national AML priorities.