As reported in CUNA News, the trade association sent a letter to House leadership on Monday saying that the Corporate Transparency Act of 2019 (H.R. 2513), and an offered
amendment, would provide much needed updates to the Bank Secrecy
Act/Anti-money Laundering framework. The House is expected to consider H.R. 2513 this week.
“Credit unions support efforts to track money laundering and
terrorist financing, but also believe it is important to strike the
right balance between the compliance costs to financial institutions,
like credit unions, and the benefits to the federal government,” the
letter reads. “As such, we support, H.R. 2513, which addresses the
redundancies, unnecessary burdens, and opportunities for efficiencies
within the BSA/AML statutory framework.”
The letter notes that the dollar amounts for reporting thresholds in
the BSA/AML framework haven’t been updated since the law’s inception in
1970, and that today’s threshold of $10,000 for Currency Transaction
Reports is the equivalent of $1,500 when the law was first passed.
“And yet, credit unions are required to report every cash transaction
of $10,000 or more, even when the credit union knows that the
transaction has no criminal implications,” the letter reads. “This is a
clear example of the compliance burden far outweighing the value of the
information to law enforcement.”
CUNA also supports an amendment offered by House Financial Services
Chairwoman Maxine Waters (D-Calif.), which would add the text of the
COUNTER Act (H.R. 2514) to H.R. 2513. This would require indexing the
CTR threshold every five years for inflation, as well as further study
of the impact of Suspicious Activity Repots.
That's All Folks!
3 years ago
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