Ahead of Tuesday’s House Small Business Committee hearing to examine the Financial Crimes Enforcement Network’s (FinCEN) implementation of the Corporate Transparency Act (CTA), America’s Credit Unions President/CEO Jim Nussle explained that rules and regulations related to anti-money laundering and countering the financing of terrorism (AML/CFT) are overly burdensome to credit unions.
Nussle offered strong support for FinCEN’s efforts to track and investigate AML/CFT financial crimes, but went on to explain how credit unions are impacted by the rulemakings implementing the CTA – the beneficial ownership information (BOI) reporting rule, finalized September 2022; the BOI access rule, finalized December 2023; and a soon-expected proposed rule that will revise the current customer due diligence (CDD) requirements. He noted that credit unions are not required to report BOI under the BOI Reporting Rule, but they will be able to confirm BOI information by accessing the database, as outlined in the access rule.
“Credit unions are awaiting the proposed revisions to the CDD requirements, which will, out of the three CTA rulemakings, have the most significant impact on credit unions,” added Nussle. “We urge FinCEN to release the CDD proposal as soon as possible, providing adequate opportunity for public input.
In addition, Nussle explained that credit unions are still struggling to understand their expectations under the new rules. The organization continues to seek additional BOI resources from FinCEN.
Read the full letter. America’s Credit Unions will continue to engage FinCEN, the Treasury, and lawmakers as implementation of the CTA continues.
