FinCEN on BSA, DoD on MLA included in spring federal agenda

May 28, 2015

WASHINGTON (5/28/15)--The spring 2015 Unified Agenda of Regulatory and Deregulatory Actions issued this week contains a number of updates on items of interest to credit unions from federal agencies.

While the timelines laid out in the agenda can change, it does provide a sense of the timing the agencies are hoping to have certain rules finalized or updated.

The U.S. Treasury’s Financial Crimes Enforcement Network’s (FinCEN) customer due diligence rule, proposed in August 2014, should be finalized sometime in August. The rule outlines a number of key elements for due diligence that include identity verification and ongoing monitoring.

CUNA, in its comment letter filed last October, expressed several concerns that the proposal could bring costs that would outweigh intended benefits. CUNA urged FinCEN to provide at least 18 months for implementation and strengthen anti-money laundering rules for other financial institutions.

The agenda also mentions two notices of proposed rulemaking from FinCEN in the coming months:

  • Amendments to regulations that implement the Bank Secrecy Act (BSA) regarding reports of foreign financial accounts, expected in August. The changes would clarify who is required to file reports on such accounts and what information in reportable; and
  • Amendments to the BSA regulations regarding the definition of “monetary instruments,” expected in September. The current definition includes currency and a variety of bearer negotiable instruments; the proposal would expand the definition to items such as foreign coins and currency, travelers’ checks and more.

Two other items of note are included in the agenda:

  • Department of Defense (DOD) Military Lending Act (MLA) proposal, which would set limits on certain credit items offered to servicemembers. CUNA and the National Credit Union Administration have expressed concerns with the proposal in their comment letters. The rule could be finalized as early as this month; and
  • Federal Reserve board amendments to availability of funds and collection of checks regulation. The proposal would condition a depository bank's right of expeditious return on the depository bank agreeing to accept returned checks electronically, from the paying bank, as well as alter funds availability provisions to reflect the fact that there are no longer any non-local checks. CUNA submitted a comment letter on this proposal, expressing concern that the proposed changes could increase risks and lead to reduced remote deposit capture. 

The agenda in its entirety can be found here.

 For more coverage of the unified agenda, see Wednesday’s story “Mortgages, prepaid products top CFPB spring rulemaking agenda” and a look at the NCUA’s agenda “MBL, FOM items part of NCUA spring rulemaking agenda” in today’s News Now.