March 7, 2013 - NAFCU's Brad Thaler wrote Senate Banking Committee leaders ahead of today's hearing on the Bank Secrecy Act to lodge concerns about a specific Financial Crimes Enforcement Network proposal on customer due diligence.
Thaler, NAFCU's vice president of legislative affairs, said much of what FinCEN is seeking to achieve with its advance notice of proposed rulemaking on customer due diligence programs is already being accomplished under other FinCEN guidelines and through examinations.
The ANPR would impose additional due diligence requirements on credit unions. Among other things, credit unions would be required to identify 'beneficial owners," verify the identity of members at account opening, understand the purpose and intended nature of the account, monitor the member's relationship and undertake further ongoing due diligence as needed.
The benefits associated with the ANPR are not significant enough to warrant the cost and burden, Thaler said, especially since many of the objectives cited are already being met.
Today's hearing is part of the Senate Banking Committee's continuing efforts to examine the BSA and its anti-money laundering rules.