Removing Barriers Blog

CUNA Writes to Subcommittee Prior to Hearing on FinCEN
Posted May 15, 2018 by CUNA Advocacy

The House Financial Service Subcommittee on Terrorism and Illicit Finance held a hearing entitled, “Implementation of FinCEN’s Customer Due Diligence Rule.”  Prior to the hearing, CUNA sent a letter to Chairman Pearce and Ranking Member Perlmutter for the record.  In the letter, CUNA wrote that the Treasury’s Financial Crimes Enforcement Network (FinCEN) should continue to work with the financial services industry as any issues with implementation of its customer due diligence (CDD) rule arise.

“We urge this subcommittee to continue to encourage FinCEN to work with the industry on implementation issues as they arise. While the CDD Rule is already in effect, matters requiring clarification will undoubtedly continue to present themselves,” the letter reads. “In addition, we hope FinCEN continues its practice of providing timely responses to specific inquiries by credit unions and other affected financial institutions.”

The hearing featured testimony from Mr. Kenneth Blanco, Director of FinCEN and focused on implementation and enforcement of the Customer Due Diligence rule, which went into effect last week and aims to bolster FinCEN’s efforts related to anti-money laundering and countering terrorist financing.  While Chairman Pearce recognized the importance of these efforts, he said “there are legitimate concerns about the application of this rule and the impact it could have on banks already struggling with BSA compliance.”  Director Blanco said FinCEN will continue to engage stakeholders to ensure proper implementation of the rule and address any unintended consequences via guidance. 

CUNA's letter noted that, while NCUA is the lead agency that will examine credit unions for compliance with the CDD rule, FinCEN should work closely together with NCUA “as examiners become more comfortable with the specific requirements of the rule.”

CUNA believes this cooperation will be much more efficient and effective for the credit union system, as well as FinCEN and NCUA.