Fraud Task Force examines House fraud bills, Nacha proposals

As policymakers continue to propose policy solutions to combat fraud, the America’s Credit Unions Fraud Task Force had a lot of new developments to discuss during its meeting on Thursday.

This includes the House Financial Services Committee’s passage of several bills to combat fraud:

• Artificial Intelligence Practices, Logistics, Actions, and Necessities (AI PLAN) Act (H.R. 2152), requiring government agencies to develop a strategy to defend against the economic and national security risks posed by artificial intelligence used to commit financial crimes;  
• Guarding Unprotected Aging Retirees from Deception (GUARD) Act (H.R. 2978), allowing state and local law enforcement to utilize funding from existing federal law grants to combat financial fraud; and  
• Bank Fraud Technology Advancement Act (H.R. 8671), requiring financial regulators and law enforcement to study and report on how technology can be better used to combat scams and fraud, with a focus on challenges faced by smaller financial institutions.

Task force members shared their perspectives on how the bill would help them in their efforts to protect members, and needed policies to address in future legislation.

The group also shared thoughts on the recent joint proposal from the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) to implement anti-money laundering and sanctions compliance program requirements in the GENIUS Act.

America’s Credit Unions issued a Regulatory Comment alert on the proposal and is accepting comments through May 26 to inform its own comment letter. Comments are due to the agencies by June 9.

Members also discussed the Nacha rule effective in June requiring automated clearing house credit monitoring by RDFIs.