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CUNA Files Letters with FinCEN and CFPB on Agency Proposals
Wednesday, November 2, 2016 6:45 AM

Credit Union National Association last week filed a letter with the Financial Crimes Enforcement Network (FinCEN) in support of its proposal that would align certain requirements of "banks lacking a federal functional regulator" with those of federally regulated banks. The proposed rule would remove the anti-money laundering program exemption for banks that lack a federal functional regulator, which includes roughly 125 privately insured credit unions (PICU).

CUNA supports the proposed rule as issued, saying they believe the rule should reduce confusion regarding BSA-related expectations and requirements of PICUs. CUNA posits that most—if not all—PICUs are required by their state financial regulator to comply with BSA requirements that parallel those required of federally insured credit unions by NCUA.

CUNA also filed a letter opposing a CFPB proposal that would greatly expand the CFPB's discretion to release more information to more entities. CUNA stated that while information sharing is a critical component to ensuring the safety and soundness of financial institutions, the vast expansion of information sharing contemplated by the proposal could increase the risk of unintended disclosures and a loss of confidentiality, which could ultimately harm consumers.

Additionally, CUNA signed on to a letter with several other financial trades expressing opposition to the plan on constitutional ground. The joint letter noted that the proposal "raises important First Amendment concerns that we believe the CFPB must address before moving forward. Some federal agencies have attempted to limit entities' ability to discuss information in the past and multiple courts have rejected such efforts. The CFPB must describe how its process is different from these previous efforts rejected by courts and explain more clearly how this restriction aligns with its mission."