A leaked report from the Treasury Department's Financial Crimes Enforcement Network (FinCEN) was the topic of a high-profile report on Tuesday by the Wall Street Journal, which said the agency is scrutinizing more than 50 credit unions that may be particularly vulnerable to potential money laundering.
The confidential FinCEN report did not accuse any credit unions of wrongdoing, according to the Wall Street Journal, but it did highlight increasing relationships with check-cashing companies and other firms FinCEN calls money-services businesses. Criminal groups and drug trafficking organizations could be targeting credit unions via MSBs to gain access to the formal financial system, it reported.
The $209 million Actors Federal Credit Union, which is headquartered in New York City, was cited in the article as one of the credit unions on FinCEN's list. The $15.6 million Bethex Federal Credit Union, which is headquartered in the Bronx, was also cited. Neither were accused of wrongdoing.
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