WASHINGTON—Credit unions are being reminded the Financial Crimes Enforcement Network (FinCEN) is paying closer attention to BSA compliance.
NAFCU Regulatory Paralegal Shari Pogach detailed FinCEN’s recent final rule to reflect the annual inflation adjustment to its civil monetary penalty amounts for Bank Secrecy Act (BSA) violations.
"While this is an annual adjustment, it should still be a reminder that the federal regulator examiners are taking now a deeper look at BSA compliance," stated Pogach. "And, as many banks and credit unions have learned the hard way, noncompliance can be costly."
Pogach explained that negligent BSA violations by financial institutions can result in a maximum penalty of $1,146 and willful BSA violation penalties range from $57,317 to $229,269. She also pointed out that there are criminal penalties for willful BSA violations.
$250,000 Fine
"Individual financial institution employees, including credit union employees, found willfully violating the BSA are subject to a criminal fine of up to $250,000 or five years in prison, or both," she said.
Simultaneous violations of the BSA and other U.S. laws, and BSA violations accompanied by participation in other criminal activity, may result in a fine of up to $500,000 or 10 years in prison, or both, she added.