In late June, FinCEN announced its national priorities for anti-money laundering and countering the financing of terrorism, AML/CFT. The Anti-Money Laundering Act of 2020 (AMLA) required FinCEN, in consultation with other agencies, to publicize national AML/CFT priorities.
Regulatory Response
Banking regulators, including NCUA, plan to revise their bank secrecy regulations to incorporate the national priorities. As part of AMLA, credit unions will eventually need to adjust their risk-based BSA compliance programs to include the national priorities. Let’s review the national priorities then unpack what NCUA Letter 21-CU-05 means for credit unions.
FinCEN’s Priorities are:
- Corruption;
- Cybercrime, including cybersecurity and virtual currency;
- Foreign and domestic terrorist financing;
- Fraud;
- Transnational criminal organization activity;
- Drug trafficking organization activity;
- Human trafficking and human smuggling;
- Proliferation financing.
FinCEN explains that every Priority might not apply to every credit union. However, when rules are finalized, credit unions should review each Priority to determine how or if it fits within the broader, risk-based BSA compliance program.
Impact on Your Compliance Program
FinCEN’s announcement of the national priorities and NCUA Letter 21-CU-05, explain that credit unions are not required to incorporate AML/CFT priorities into their risk-based BSA compliance programs until the effective date of final regulations. The target for final regulation is December 27 of this year. We’ll see if any final rule provides lead time for enforcement.
Therefore, NCUA and state examiners will not examine for the national priorities in your BSA compliance program until sometime in 2022. Recognizing that each credit union devotes significant time and effort to BSA compliance, start planning now. AMLA is the most significant update to BSA since the USA Patriot Act. It’s in every credit union’s best interest to start this process early and shape your compliance future.
- Start considering whether the national priorities are included in you BSA compliance program.
- Consult with BSA vendors and discuss how they will support your program.
- Talk with your examiners and auditors and try to learn their expectations even during this developmental phase of the rules.
- Engage with your trade groups and comment on proposed rules.
AMLA changes are just beginning. But as you juggle daily challenges and work to implement new rules, these changes will hit lightening fast. If you need help working with the new rules or commenting, please reach out to us at wargor@compliance4creditunions.com.
