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Sen. Jeff Flake, R-Ariz., and Rep. Blaine Luetkemeyer, R-Mo., yesterday wrote NCUA Board Chairman Rick Metsger asking for answers by Nov. 1 on how the agency has addressed impacts associated with the practice of financial institutions' "de-risking," or terminating certain accounts due to potential risks.

Flake and Luetkemeyer, chairman of the House Financial Services Subcommittee on Housing and Insurance, noted that NCUA has not issued any supervisory guidance on the practice of de-risking. They requested that the agency clarify its position on the trend and examine its anti-money laundering regulations.

Specifically, they requested information on whether NCUA has "encouraged credit unions to de-risk due to a customer's specific location or line of business" and the methods used by the agency to ensure fair examinations of compliance with anti-money laundering laws.

"Credit unions in our states have made it clear that the de-risking trend is very real and may result from actions taken by NCUA's regulatory and supervisory staff to influence a credit union's decision to exit a line of business or to terminate a customer relationship," the lawmakers wrote.

The two noted the significance of money laundering and terrorism and the responsibility of credit unions to thoroughly assess the nature and risk associated with all their member accounts. However, they added, "the implementation of federal anti-money laundering efforts must be pursued with an eye toward unnecessary and unintended impacts to law abiding citizens and businesses."