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A bipartisan group of senators – led by Sens. Mark Warner, D-Va., and Tom Cotton, R-Ark. – introduced the Illicit Cash Act (S.2563) yesterday to require companies to register their owners with the Treasury Department's Financial Crimes Enforcement Network (FinCEN) and seek to modernize and improve the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) efforts. Similar NAFCU-backed bills are also being considered in the House.

Also Thursday, the Government Accountability Office released a report on the Bank Secrecy Act (BSA) that includes the following four recommendations for the Director of FinCEN to consider:

•  prioritize the inclusion of the primary SRO conducting BSA examinations in the Bank Secrecy Act Advisory Group on a more consistent basis;
• explore providing direct BSA data access to the National Futures Association;
•  review options for FinCEN to more consistently and publicly provide summary data on the usefulness of BSA reporting; and
•  review options for establishing a mechanism through which law enforcement agencies may provide regular and institution-specific feedback on BSA reporting.

NAFCU's Regulatory Compliance Team will review the report and update credit unions with need-to-know information.

Other sponsors of the Senate bill include Sens. Doug Jones, D-Ala., Mike Rounds, R-S.D., Bob Menendez, D-N.J., John Kennedy, R-La., Catherine Cortez Masto, D-Nev., and Jerry Moran, R-Kan.

The Senate bill – as proposed – would also update the definition of  "coins and currency" to include digital currency and seeks to help financial institutions, like credit unions, share information on suspicious activity and streamline reporting.

NAFCU has previously shared with FinCEN suggested improvements to improve the BSA/anti-money laundering (AML) system, including offering incentives for whistleblowers and expanding FinCEN's information-sharing programs to foreign governments.

NAFCU has backed efforts on the Hill to help disclose the beneficial ownership or companies and modernize the BSA: Vice President of Legislative Affairs Brad Thaler offered the association's support for beneficial ownership disclosure in a letter to the Senate Banking Committee earlier this year, including urging members "to continue to look for ways to provide credit unions with regulatory relief by reforming and strengthening BSA laws."

NAFCU will monitor developments and update credit unions on discussions.