Skip to main content

FinCEN Issues Proposed Rule Amending AML/CFT Programs

07/01/2024 08:19 pm

WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) has issued a proposed rule amending financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs to explicitly require that such programs be “effective, risk-based, and reasonably designed,” enabling financial institutions to focus their resources and attention in a manner consistent with their risk profiles.

FinCEN

The proposed amendments are based on changes to the Bank Secrecy Act (BSA) as enacted by the Anti-Money Laundering Act of 2020.

The Specifics

Specifically, FinCEN said the proposed rule would:

  • Amend existing program rules to explicitly require financial institutions to establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs with certain minimum components, including a mandatory risk assessment process
  • Require financial institutions to review government-wide AML/CFT priorities and incorporate them, as appropriate, into risk-based programs, as well as provide for certain technical changes to program requirements
  • Promote clarity and consistency across FinCEN’s program rules for different types of financial institutions

Avoiding ‘One Size Fits All’

According to FinCEN, the emphasis on risk-based AML/CFT programs seeks to avoid one-size-fits-all approaches to customer risk that can lead to financial institutions declining to provide financial services to entire categories of customers.

FinCEN said its proposal was prepared with consultation with the NCUA and other federal financial regulators to collectively issue proposed amendments to respective BSA compliance program rules for institutions they supervise.

Comments are due within 60 days of publication in the Federal Register.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Why Auto Lending Is Starting To Stand Out As A Real Threat To CUs

  By Ray Birch MILWAUKEE—Auto lending is emerging as one of the biggest areas of risk for credit unions, even as the broader U.S. economy continues to perform better than many expected, according to Bill Handel, chief economist at Raddon, a Fiserv company. Delinquency trends in auto portfolios are now approaching levels last seen during the Great Financial Crisis, Handel said, driven by a combination of high vehicle prices, elevated interest rates and increasing financial pressure on lower-income consumers. “There’s probably still a lot of risk in the auto portfolios,” Handel said. “Our numbers in terms of delinquency behavior in the United States are now rivaling what they were during the Great Financial Crisis.” Economy Holding Up Better Than Expected Despite those pockets of risk, Handel said the broader economy remains surprisingly resilient. “If you look at the U.S. economy, it’s actually performing quite well—probably better than most people would have anticipated,” he said. ...
Post a Comment
Read Complete Article HERE>»

When Cooperation Turns To Competition: A Turning Point For The Firefighter Credit Union Movement

  By Grant Sheehan For decades, firefighter credit unions have stood as a model of what cooperative finance is meant to be—institutions built not to compete ruthlessly, but to serve a shared mission: supporting the financial well-being of those who risk their lives in service to others. That’s what makes the recent actions of Firefighter First Credit Union so concerning. Firefighter First FCU was not just another participant; it was a founding member of the National Council of Firefighter Credit Unions (NCOFCU). It helped shape the very principles of collaboration, mutual respect, and non-encroachment that have long defined our community. Those principles weren’t accidental; they were intentional safeguards to ensure that firefighter-focused credit unions could grow together, not at each other’s expense. But something has changed. Firefighter First FCU’s decision to pursue a nationwide charter marks a clear shift in direction—from cooperation to direct competition. This isn’t simpl...
Post a Comment
Read Complete Article HERE>»

Small Credit Unions Don’t Lack Representation—They Lack Board Education

  By Grant Sheehan Let’s be clear— representation  for small credit unions is not something new that suddenly needs to be invented. For more than 150 years in Europe and 115 years in the U.S., many of us—along with numerous trade groups representing postal workers, schools, hospitals, the military, first responders, electricians, welders, auto workers, and many other sponsor employee groups—have been actively representing and supporting small credit unions. The mission has always been the same: protect these institutions and ensure they have a voice. The real challenge facing small credit unions has never been a lack of organizations claiming to represent them. The challenge has been engagement and education. Many small credit unions operate with extremely limited resources. Their boards are made up of volunteers who already have full-time careers. Even when scholarships, training opportunities, and conferences are offered, the realities of travel costs, staffing shortages, op...
Post a Comment
Read Complete Article HERE>»

With Graham Signaling New Budget Bill, Credit Unions Brace For Tax Debate

By Ray Birch WASHINGTON— Senate Budget Committee Chairman Lindsey Graham’s comments Wednesday that Republicans will “expeditiously move toward creating a second budget reconciliation bill” are giving new shape to what had been a speculative discussion in Washington—and prompting renewed attention within the credit union industry to whether the movement’s federal tax exemption could again surface as lawmakers look for possible offsets. In a post on X, Graham said that after consulting with President Trump, his team and Senate Majority Leader John Thune, the Senate Budget Committee will move quickly on a second reconciliation package focused on “adequate funding to secure our homeland” and support for the military. The remarks are notable because they offer one of the clearest indications yet that a second fast-track budget measure—previously discussed but far from certain—may now be gaining traction. CUToday.info on Wednesday reached out to House Budget Committee Chairman Jodey Arringto...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - How were the National Parks started?

  America's 'Best Idea'       How were the National Parks started? America's National Park System includes roughly 85 million acres of US territory, equal to the size of Germany, set aside by federal law for preservation. There are 63 areas officially designated as national parks—including the Grand Canyon, the Great Smoky Mountains, and Acadia—and more than 400 additional smaller units ( see map ). In 1872, Yellowstone was established   as the first national park dedicated to public enjoyment and recreation, though its foundation also  displaced several Native American tribes . By 1916, the growing system required the creation of the National Park Service to preserve its lands for future generations. Eventually, hunting and logging were banned in the parks, though regulated extractive activity is still permitted in nati...
Post a Comment
Read Complete Article HERE>»

Boston Firefighters Credit Union can open membership to police officers

  By Deirdre Fernandes Globe Staff  February 12, 2015 The Boston Firefighters Credit Union will be able to open its membership to the city’s police officers and other law enforcement officials, a Suffolk County Superior Court judge ruled Thursday. Judge Mitchell Kaplan rebuffed an attempt by the City of Boston Credit Union to stop the firefighters credit union from expanding its membership and taking away some of its most lucrative customers: police officers, who are among the highest-paid city employees. The turf battle between the two financial institutions grew unusually emotional as they accused each other of distorting facts and invoking the events surrounding the Boston Marathon bombing to promote their cause. David Cotney, the state’s commissioner of banks, had approved the firefighters’ expansion plans in November. But the city’s credit union filed a court injunction to stop it. In his decision dismissing the case, Judge Kaplan said the commissioner’s decision ...
Post a Comment
Read Complete Article HERE>»

Lifesaving Companion Dog Takes On New Role With Injured Firefighter « CBS New York

Lifesaving Companion Dog Takes On New Role With Injured Firefighter « CBS New York : "NEW YORK (CBSNewYork) — A badly injured New York firefighter received a companion dog whose already saved people’s lives from fire. As CBS2’s Dave Carlin reported, disabled firefighter Tom Prin beamed as he was officially presented with his new canine companion Halona inside of a packed ceremony in Suffolk County. The former firefighter was one of 15 people receiving their canine companions. Prin was chosen because of what he’s been through — after fracturing his neck and back while responding to a Brooklyn fire. “When I was going from the third to fourth floor, the steps gave out and I fell through the fire escape,” he said. Prin has endured five spinal surgeries, but the Holtsville man will now be comforted by Halona who has quite the lifesaving resume herself." Click HERE to read full story and see video 'via Blog this'
Post a Comment
Read Complete Article HERE>»

James Hunter, Executive Director of Credit Union Development for New Orleans Firemen’s CU, knows too well how expensive it is to be poor.

  NEW ORLEANS FIREMEN’S FCU 􀀁 METAIRIE, L   A passion for empowerment James Hunter knows too well how expensive it is to be poor. It’s what he sees every day as mortgage director and executive director of credit union development for $182 million asset New Orleans Firemen’s Federal Credit Union, Metairie, La., and executive director of The Faith Fund, a nonprofit partnership that seeks to provide a financial hand-up to the undeserved. It’s what inspires him to come to work every day and drives his passion of empowering people and setting them on the path to financial security. “Too many people are too far away from the starting line,” Hunter says. “Payday loans are a big business in Louisiana. Exorbitant fees and interest from payday loans drain more than a quarter of a billion dollars a year. Baton Rouge supports one of the top three pay-day loan markets in the U.S.” The Faith Fund was formed to counteract that. It’s a unique cooperative relationship between like-minded busi...
Post a Comment
Read Complete Article HERE>»

What Trump’s ‘one big beautiful’ tax-and-spending package means for your money!

  Trump’s megabill will bring sweeping changes for household finances. President  Donald Trump  signed his “one big beautiful” tax-and-spending package on July 4 — legislation that will bring sweeping changes to Americans’ finances.  After the  Senate passed its version  on July 1, the House Republicans on July 3  voted to approve  the multi-trillion-dollar domestic policy legislation and send it to Trump’s desk for signature. The final bill makes permanent Trump’s  2017 tax cuts  while adding new relief, including a senior “bonus” to  offset Social Security taxes  and a  bigger state and local tax deduction . The plan also has tax breaks for  tip income , overtime pay and  auto loans , among other provisions.  The GOP’s marquee legislation will also enact deep spending cuts to social safety net programs such as  Medicaid  and food stamp benefits,  end tax credits tied to clean energy  an...
Post a Comment
Read Complete Article HERE>»