X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ALEXANDRIA, Va. – Corporates have been asking for it, and they got it – guidance from NCUA on complying with the Bank Secrecy Act. The main point of confusion for corporates was how can they report on what individuals do in terms of suspicious wire transfers under BSA, when the natural person CUs are driving that. “Typically a wire transfer is conducted through the corporate credit union, acting as the intermediary financial institution, by transferring the funds out of the credit union account with the corporate and into the Federal Reserve Bank. In that situation the originator of the transaction, the natural person credit union member, is not a member of the corporate and the corporate credit union will not have any knowledge of the normal transaction activity for the member,” wrote NCUA, thus the responsibility of BSA monitoring in this case belongs to the natural person CU. In contrast, however, NCUA wrote that corporates should be aware of the typical account activity in accounts it monitors for its CU members. In those cases, it has the responsibility to ensure BSA compliance. “This is a smart way to regulate. Issuing a guidance letter like this now cuts through a lot of the red tape and legal fees corporates would have had to go through. Now they can use the money to implement programs,” said Mike Canning, executive director of the Association for Corporate Credit Unions.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.