Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FinCEN should allow some SARs latitude CUNA
WASHINGTON (6/9/09)--The Credit Union National Association (CUNA) in a comment letter presented its interpretation of recent Financial Crimes Enforcement Network (FinCEN) guidance on Suspicious Activity Report (SAR) confidentiality rules. In proposed interpretive guidance, FinCEN would allow financial institutions to share SAR information with U.S. affiliates, but would restrict them from sharing that same information with branches located outside of the United States. SARs are intended for use by government and law enforcement officials to combat money laundering and terrorism financing. In the letter, CUNA said that while it supports the FinCEN’s interpretation of sharing guidelines under the proposed SAR confidentiality rules, relaxing those rules to allow U.S.-based financial institutions to share SAR information with their foreign branches would enhance enterprise-wide Bank Secrecy Act compliance and would “assist in the overall goal of detecting and reporting money laundering and terrorist financing within the institution on a global scale.” Credit unions that serve the military, diplomatic groups and other international organizations would benefit from this change, CUNA added. Further, the disclosure risk presented by relaxing these potential rules would be no greater than the risk under prior guidance that allows sharing between U.S. branches of a foreign bank or a U.S. bank or credit union and related head offices or controlling companies that are based outside of the U.S. In a separate letter, CUNA said that it generally supports FinCEN’s broader interpretation of the SAR non-disclosure prohibition, as well as the proposed rule’s clarification regarding permissible SAR or SAR information disclosures by financial institutions. FinCEN’s proposed rule also includes a number of "rules of construction" that seek to address issues that were not clarified by existing SAR non-disclosure prohibitions. However, CUNA does note that FinCEN should provide additional clarity under the "rules of construction" regarding the distinction between SAR information protected under the non-disclosure rules and underlying facts, which are not protected. Finally, CUNA said it generally supports the proposed rule’s compliance provision. However, CUNA believes that the provision’s treatment of issues regarding third party independent audits for BSA compliance should be clarified. For full text of the comment letters, use the resource link below.
Other Resources

RSS print
News Now LiveWire
Economic activity slowed in June, according to the #Chicago Fed's national activity index, released today #Market http://t.co/1pN6peM8my
14 hours ago
Money burns a hole in workers' pockets after payday, despite best intentions via @WSJeconomy http://t.co/A9SNiUdf9v
14 hours ago
"SAR Stats," new from #FinCEN, focuses on #bitcoin. See #NewsNow http://t.co/vS7iTwY2SW
15 hours ago
.@CFPB now accepts consumer complaints on prepaid cards, debt settlement services, credit repair services, and pawn and title loans.
16 hours ago
.@WellsFargo to process transactions in order received, not high to low http://t.co/g0jWJoegoJ
16 hours ago