October 21, 2019

NAFCU Insights detail potential BSA reform

On NAFCU's member-only Compliance, Risk & BSA Network Kaley Shafer details her meeting with FinCEN from earlier this weekFollowing NAFCU's meeting with the Financial Crimes Enforcement Network's (FinCEN) Office of Regulatory Policy and recent regulatory relief efforts related to Bank Secrecy Act/Anti-Money Laundering (BSA/AML), NAFCU Regulatory Affairs Counsel Kaley Schafer provided insights in to the group's discussion in a new post on the member-only Compliance, Risk & BSA Network.

"Based on recent legislative and regulatory efforts it is likely that we will see BSA/AML reform in the near future, including some much needed regulatory relief," wrote Schafer. "We appreciate FinCEN’s continued efforts to modify BSA/AML regulations as we see crime evolving and the ability to leverage technology."

During Wednesday's meeting with FinCEN, NAFCU shared credit union concerns regarding the implementation of some S. 2155 provisions and the regulatory burden presented by FinCEN's rules on collecting suspicious activity reports (SARs). The association also discussed recent and upcoming guidance related to hemp banking.

In the post, Schafer detailed FinCEN's efforts to quantify the value of BSA information with a metrics-based approach through the BSA Value Project, set to be finalized in 2020.

Schafer also highlighted Representative Carolyn Maloney's, D - N.Y., Corporate Transparency Act (H.R. 2513), that would help financial institutions comply with the new customer due diligence rule by requiring companies to disclose their true "beneficial owners" to FinCEN, and the agency’s previous commentary on legislative efforts.

NAFCU has previously shared its support of the bill and Schafer indicated that the association is optimistic that this bill and other reform efforts may be finalized this year.

NAFCU members are encouraged to access Schafer's full blog on the member-only Compliance, Risk & BSA Network. The association will continue to advocate to reduce credit unions' regulatory burden and work with FinCEN on these issues.