LAS VEGAS — Heightened regulatory scrutiny on foreign transactions could be on the way for credit unions as the possible result of close new ties between credit union regulators and an agency of the U.S. Treasury, Washington attorney Judith A. Lee, a specialist in financial trade law, told a Credit Union Times/Executive Enterprise Institute conference here.

Lee, a partner at Gibson, Dunn & Crutcher, said a new agreement reached Dec. 4, between the New York State Banking Department and the Office of Foreign Assets Control could spell tighter examination of CU foreign dealings with individuals and businesses.

The pact between OFAC and the New York agency signals a new “bosom buddies” linkup, which means regulators could be paying far more attention to foreign transactions than in the past, said Lee. In her remarks, she stressed that OFAC has undergone a reshuffling in recent months with a new leadership team far more “outgoing” in approach and much more eager than in the past to share data with other agencies. Calling the New York agreement “a harbinger of things to come,” Lee told attendees at the Credit Union Times conference at Caesar's Palace she understands OFAC intends to expand the pact to other states with plans underway to meet with the National Association of State Credit Union Supervisors. –[email protected]