NCUA exam priorities: What to expect in 2020

Real estate AML requirements should not burden CUs

February 21, 2022

CUNA supports the Financial Crimes Enforcement Network’s (FinCEN) Advance Notice of Proposed Rulemaking on anti-money laundering (AML) regulations for real estate transactions but urges FinCEN not to place any unnecessary burdens on credit unions.

“[I]t is critically important that FinCEN 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,” the letter reads. “As FinCEN seeks to identify the proper scope for its rule, it should ensure that it does not impose duplicative or conflicting requirements.

Further, it must ensure it does not task credit unions or credit union service organizations (CUSOs) with responsibility for the compliance of third-party entities,” it adds.

CUNA also urges FinCEN not to establish reporting requirements for financial institutions like credit unions regarding transactions in which they are not involved.

“FinCEN must not treat the smaller, community based financial institutions as a “clearinghouse” for all transactions to identify potential money laundering or terrorist financing activities,” the letter reads. “Doing so will have a direct, negative affect on smaller, community-based financial institutions.”