ARLINGTON–NAFCU has sent a letter to the Financial Crimes Enforcement Network (FinCEN) in response to its proposed rulemaking regarding the requirements for certain transactions involving convertible virtual currencies (CVCs) or legal tender digital assets (LTDA).
NAFCU said it is supportive of efforts to correct gaps in existing Bank Secrecy Act (BSA)/anti-money laundering (AML) regulations; but it is calling on FinCEN to allow for additional time for stakeholder comments, or, alternatively to ensure that engagement with financial institutions occurs.
“In addition, NAFCU implores FinCEN to mitigate compliance burdens by ensuring consistency, as much as possible, with current reporting and recordkeeping requirements and providing a reasonable implementation period given the proposed expansion of BSA/AML compliance requirements,” the trade group wrote.
NAFCU added that as CVC becomes more prevalent in our financial system, it brings BSA/AML concerns to light.
“Credit unions that have hosted wallet accounts will be impacted by this proposal. As the proposal indicates, the number of financial institutions impacted by this proposal are small in comparison to the total number of financial institutions,” NAFCU added. “Nevertheless, the proposal could have future implications on a credit union’s decision to provide financial services for CVCs/LTDAs as the proposal greatly increases the level of necessary compliance.”
The letter was signed by NAFCU Senior Regulatory Affairs Counsel Kaley Schafer.
Support for CU Workers as ‘Essential’
Separately, NAFCU President and CEO Dan Berger sent a letter to the Centers for Disease Control and Prevention (CDC) in support of designating credit union employees as "essential" workers under its coronavirus vaccination distribution plan.
NAFCU noted that with the designation credit union employees would be eligible to receive the vaccine following healthcare workers, long-term care facilities, and older Americans.
"From the start of the pandemic, many credit unions took steps to help minimize person-to-person interaction, such as limiting staff travel, encouraging staff to telework as much as reasonably possible, and reminding members of online and mobile banking resources as well as drive through windows if available," Berger wrote. "The health and safety of credit union staff and members remains the industry’s top priority as the COVID-19 pandemic endures.”