NACUSO said business lending CUSOs are not affected by an anti-money laundering proposal from the Financial Crimes Enforcement Network.

FinCen (www.fincen.gov) has proposed extending anti-money laundering provisions to non-banks engaged in residential mortgage lending or origination. According to NACUSO General Counsel Guy Messick, the proposal does not include business lending CUSOs, but could impact those that provide mortgage lending or origination services. They could be subject to federal money laundering rules, including the obligation to file suspicious activity reports, Messick said.

FinCen is seeking comment on a number of areas: an incremental approach to the issuance of regulations for loan and finance companies that would initially affect only those persons engaged in non-bank residential mortgage lending or origination; how any such regulations should define persons engaged in non-bank residential mortgage lending or origination; the financial crime and money laundering risks posed by such persons; how anti-money laundering programs for such persons should be structured; whether such persons should be covered by Bank Secrecy Act requirements other than the AML program requirement, including SAR reporting; and whether any such persons should be exempted from AML program or SAR reporting requirements.