CUs Get More Time to Comply With BSA/AML Rules: NCUA
Examiners are instructed to accept a "credit union’s reasonable and good faith efforts to comply with the new rule throughout 2018.”
In the letter, McWatters said that credit unions were required to comply with the new rules on May 1.
“The NCUA recognizes that some credit unions may need additional time to implement changes and to fully comply with the new requirements,” he wrote. “The NCUA examiners have been instructed to accept a credit union’s reasonable and good faith efforts to comply with the new rule throughout 2018.”
He added, however, that the NCUA’s acceptance of good faith efforts for supervision purposes does not protect credit unions from Financial Crimes Enforcement Network penalties that could arise from failing to comply with all Bank Secrecy Act and Anti-Money Laundering requirements.
In a separate letter, Larry Fazio, the agency’s director of the Office of Examination & Insurance, wrote that NCUA field staff next year will begin more in-depth reviews of credit unions’ compliance with the requirements.
When it issued the new rules, FinCEN said covered financial institutions are currently not required to know the identity of individuals who own or control their legal entity customers. The new rule will correct that, FinCEN said.
The rules will require credit unions to obtain and verify the identity of all beneficial owners at the time an account is opened. Credit unions may use a standard certification form that is contained in the rules or any other means that complies with the rules. Credit unions will be required to maintain records and may rely on another financial institution’s verification.
Under the plan, money laundering requirements will be amended to include risk-based procedures for conducting ongoing customer due diligence in an effort to develop a customer risk profile.