NCUA issues proposal to allow SAR requirement exemptions
The NCUA last week, by notation vote, issued a proposed rule to amend the agency's suspicious activity report (SAR) regulation. The agency, in its release, said it expects the amendments to reduce regulatory burdens on federally-insured credit unions (FICUs) and encourage technological innovation within the credit union system.
The proposal is similar to one issued by banking regulators earlier this month and is part of a coordinated effort between financial institution regulators and the Financial Crimes Enforcement Network (FinCEN) to improve the efficiency and effectiveness of Bank Secrecy Act (BSA) compliance programs and facility greater innovation within the financial services sector.
The proposed rule would permit the NCUA to issue, on a case-by-case basis, exemptions from SAR filing requirements to FICUs when the exemption is consistent with safe and sound practices and can improve the effectiveness and efficiency of BSA reporting. It would also make it possible for the NCUA to grant exemptions, in conjunction with FinCEN, to FICUs that develop innovative solutions to meet BSA requirements.
The proposed rule will be open for a 30-day comment period once published in the Federal Register.
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