Appeals court amicus brief continues opposition to EFTA expansion in fraudulent wire transfer lawsuit

America’s Credit Unions and the New York Credit Union Association joined other financial services organizations Friday to file an amicus brief in a case brought by the New York Attorney General against Citibank, N.A. Friday’s brief supports Citibank’s petition for permission to appeal to the Second Circuit Court of Appeals.

The district court rejected Citibank’s motion to dismiss in January, and America’s Credit Unions supported Citibank’s motion for an interlocutory appeal, which was granted.  

The organizations continue to believe expanding the EFTA to include wire transfers is contrary to decades of case law and regulatory guidance. Such a change would force banks and credit unions “to scramble to determine their legal obligations and to expend a tremendous amount of time and resources to reorganize their operations that had been built on a decades-old doctrinal foundation,” argued the groups.