ALEXANDRIA, Va. -- NCUA and the other federal financial regulators recently issued a statement to assist credit unions and other financial institutions in their Bank Secrecy Act compliance efforts.

NCUA emphasized that the statement does not change any of its practices or policies for compliance examinations, but it is meant to clarify how NCUA looks at BSA exams and helps explain to credit unions how the agency identifies, characterizes and addresses various types of problems and deficiencies in a BSA compliance program.

According to a joint statement, the applicable statutes provide that if a regulated institution fails to establish and maintain a BSA compliance program or fails to correct a previously identified problem with its BSA program, their regulator will issue a formal cease and desist order. The statement clarifies that the agencies may take formal or informal enforcement actions to address other concerns related to BSA or anti-money laundering, depending on the facts.