CUNA submitted
comments to the Federal Reserve Board and the Financial Crimes
Enforcement Network (FinCEN) in response to their joint notice of proposed
rulemaking (JNPRM) lowering the threshold for collection, retention and
transmittal of information for international funds transfers, and clarifying
the treatment of convertible virtual currencies and other assets with legal
tender status. Most significantly, the proposal would lower this critical
threshold from transactions valued at $3,000 and above to $250 and above.
In the comment letter, CUNA
expressed support for the goals of Bank Secrecy Act (BSA) regulations like this
one, but strong opposition to this dramatic reduction of the transfer/transmittal
threshold. The letter explains that the lower threshold would impose
substantial regulatory burdens and costs on credit unions, particularly those
serving disadvantaged immigrant communities. In addition, the JNPRM
relies heavily on data derived from approximately 2,000 Suspicious Activity
Reports (SARs) to explain the need for the lower threshold, but does not
adequately explain why the SARs process does not already provide adequate
information about suspicious low value, cross-border transactions. CUNA’s
comment letter further argues that the JNPRM did not adequately explain
alternatives to the lower threshold, such as streamlining and improving the
SARs process to ensure that more useful information is provided to law
enforcement entities.
If
you have questions about this matter or other BSA regulations, please contact
Damon Smith at (202) 235-3390 or dsmith@cuna.coop.