ARLINGTON, Va.–NASCUS is offering a number of recommendations to NCUA’s proposed rule about credit union exemptions from filing suspicious activity reports (SARs).
In its comment letter, the trade group for state credit union supervisors expresses support for the agency’s proposal related to the Bank Secrecy Act, which would provide the agency leeway to grant federally insured credit unions (FICUs) exemptions from NCUA rules implementing Suspicious Activity Report (SAR) filing requirements.
In its letter, NASCUS wrote that emphasizing substantive SAR results over procedural compliance will result in “SAR data that is potentially of greater use to law enforcement and national security stakeholders and is consistent with the intent and spirit of the BSA.”
NASCUS made a number of recommendations for what it said would be “minor improvements in the proposal” and intended to clarify the rule and reduce regulatory burden for credit unions. Among them:
- Commit to consulting with the appropriate state regulator when evaluating a request for an exemption
- Clarify what “classes” or “select groups” may apply for an exemption or have a third party apply for an exemption on their behalf from certain SAR filings
- Specify to which NCUA office to send a request for exemption
The full comment letter can be found here.