WASHINGTON—Senate Banking Committee Republicans legislation that would raise the dollar thresholds for when financial institutions must report potentially suspicious transactions under the Bank Secrecy Act, is “long overdue,” the Defense Credit Union Council stated.
As CUToday.info reported, Sen. John Kennedy (R-LA) and Committee Chair Tim Scott (R-SC) have introduced the STREAMLINE Act—which would boost the reporting triggers for both Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) from their decades-old levels.
In a letter to Kennedy and Scott, DCUC stressed that the bills “commonsense reforms will reduce outdated regulatory burdens while preserving essential anti-money laundering safeguards, ultimately allowing credit unions to better serve servicemembers and their communities.”
DCUC Chief Advocacy Officer Jason Stverak emphasized in the letter the impact on CUs that support the military.
“For defense-oriented credit unions in particular, this relief is urgently needed,” Stverak said. “DCUC member credit unions operate on military installations and serve servicemembers around the world. They have a proud mission to support the financial readiness of our troops and their families. Yet under current BSA rules, even routine transactions by military members – such as depositing savings or cashing deployment pay – can trip the CTR threshold and force credit unions to file reports on loyal, law-abiding members. Each report consumes staff time and resources that could be better spent on serving members or strengthening anti-fraud programs.
“By updating the thresholds to more sensible levels, S. 3017 will allow these credit unions to devote more resources to their members’ needs while still focusing on truly suspicious activities,” continued Stverak. “This regulatory right sizing will especially help smaller community-based and on-base credit unions that lack the massive compliance departments of big banks. Ultimately, the STREAMLINE Act will empower credit unions to support our military communities more effectively, free from antiquated red tape that does little to improve security. In closing, the Defense Credit Union Council strongly endorses the STREAMLINE Act and urges its swift consideration.”