Removing Barriers Blog

BSA/AML Relief Legislation Passes Financial Services Committee
Posted May 09, 2019 by CUNA Advocacy

Earlier today, the House Financial Services Committee (HFSC) passed H.R. 2514, the “Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform (COUNTER) Act of 2019,” which includes Bank Secrecy Act/Anti-Money Laundering (BSA/AML) relief for credit unions.   

Representative Cleaver (D-MO) and Committee Chair Rep. Maxine Waters (D-Calif.) worked with Rep. Barry Loudermilk (R-Ga.) to add an amendment to H.R. 2514 to index the Currency Transaction Report thresholds for inflation and further study the impact of Suspicious Activity Reports (SARs).  

“Today’s vote was an important first step, and we thank Representatives Cleaver and Loudermilk for working with Chairwoman Waters to advance this legislation,” CUNA Chief Advocacy Officer Ryan Donovan added. “The dollar amount thresholds included in the BSA/AML for currency transaction reports and suspicious activity reports have not been updated since the law was originally enacted in 1970, and we look forward to working with House and Senate leaders on both sides of the aisle to pass legislation that reduces credit unions’ burden, improving the services they provide to members across the country.” 

Prior to the markup, CUNA wrote to the Chairwoman and Ranking Member in support of efforts to track money laundering and terrorist financing, but reiterated that it is important to strike the right balance between the compliance costs to financial institutions, like credit unions, and the benefits to the federal government.   

CUNA has and will continue to advocate on behalf of credit unions who face compliance burdens for some of the BSA/AML requirements which appear to outweigh the value of the information reported. In March, CUNA sent a letter sent to the House Financial Services subcommittee on national security, international development and monetary policy, citing an example of the compliance burden by highlighting the $10,000 CTR threshold.