Engaging with Treasury on fraud, updated federal payments processes

Credit unions brought the industry's perspective to the table as the federal government updates its payments processes. America’s Credit Unions Chief Advocacy Officer Carrie Hunt and Director of Innovation and Technology Andrew Morris took part in a Treasury roundtable focused on updating the federal disbursement process.

The administration issued two Executive Orders in March aimed at reforming federal disbursements. This includes removing paper checks for federal payments and streamlining systems used by Non-Treasury Disbursing Offices.

Treasury Deputy Secretary Michael Faulkender led Wednesday’s roundtable. It also included Deputy Assistant Secretary for Fiscal Operations, Policy within the Bureau of the Fiscal Service Matthew Garber, and featured opening remarks from Rep. Bryan Steil, R-Wis.

The discussion addressed how the Treasury can phase out paper-check payments and collections in a way that protects vulnerable populations, leading efforts to enable more digital payments in the financial system, and using public-private partnerships to expand access to no/low-cost accounts.

Participants, including America’s Credit Unions, discussed:

• Improving check handling by modernizing outdated regulations, such as Regulation CC (which covers availability of funds, collections, and checks), to better protect financial institutions from the risk of loss, especially with respect to Treasury checks;
• How the government can support a broader anti-fraud mission by clarifying information sharing authorities; and
• How the government can promote the use of instant payments for disbursing federal payments to individuals.