Search
 

CUNA Tells FinCEN Separating Domestic, Cross Border Transactions is Impractical

WASHINGTON-Separating domestic and international wire transfers would be "problematic" for smaller financial institutions, including credit unions, CUNA said in a comment letter to the Financial Crimes Enforcement Network. Treasury, through FinCEN has been mandated by Congress to investigate the feasibility of reporting cross border electronic funds transfers in support of...

By Staff Writer | Updated on April 25, 2006

WASHINGTON-Separating domestic and international wire transfers would be “problematic” for smaller financial institutions, including credit unions, CUNA said in a comment letter to the Financial Crimes Enforcement Network. Treasury, through FinCEN has been mandated by Congress to investigate the feasibility of reporting cross border electronic funds transfers in support of efforts to fight money laundering and terrorist financing. “However, mandating that financial institutions must segregate cross border transfers from domestic transfers may be problematic, especially for smaller institutions,” CUNA Assistant General Counsel Lily Thomas wrote. “Smaller credit unions typically send and receive wire transfers through a correspondent, which is generally a corporate credit union or larger financial institution. When a transfer is received by a correspondent, the domestic and cross border transfers are not distinguished.” Additionally, she pointed out that credit unions would also have to set up new recordkeeping procedures because some credit unions-mostly smaller ones-maintain wire records by account number rather than by date because of frequently requested account information in government subpoenas. “If cross border transfer information would be required to be reported, data processing systems would need to be upgraded to enable credit unions to retrieve the required information,” Thomas added.

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?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

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

Copyright © 2025 ALM Global, LLC. All Rights Reserved.