Lower BSA transfer threshold would substantially burden CUs

November 30, 2020

A proposed reduction in the threshold for Bank Secrecy Act (BSA) regulatory information collection, retention and transmittal requirements for funds transfers would result in substantial burdens and costs for credit unions, CUNA wrote to the Federal Reserve and Financial Crimes Enforcement Network (FinCEN). The two agencies proposed lowering the reporting thresholds for certain transfers and transmittals to $250, well below the current $3,000.

“It is critically important to strike the right balance between the imposition of compliance costs on leanly staffed, community-oriented credit unions and the potential benefits that BSA regulatory requirements may provide to law enforcement,” the letter reads. “In its current form, this proposed rule fails to strike that balance…[b[ecause the proposed rule contemplates a dramatic 91% reduction in the collection, retention and transmission threshold, CUNA believes that it will burden a larger number of credit unions, particularly those serving disadvantaged immigrant communities.”

The proposal states the revisions would impact at least 5,236 credit unions, 4,681 of which are federally regulated small credit unions.

CUNA also stated that the proposal does not adequately consider alternative approaches. 

“CUNA has consistently advocated for minimizing the duplication of various BSA regulations and improving feedback on SARs to ensure they are truly beneficial to law enforcement,” the letter adds.