CUs: FinCEN must work with regulators on ‘no-action letter’ process

by David Baumann, CUCollaborate

Credit unions and their trade groups applauded the Financial Crimes Enforcement Network (FinCEN) for proposing a “no-action letter” process but warned that it would be unfair if the NCUA and other regulators were not parties to that process.

“A no-action letter from FinCEN loses its value if other regulatory authorities are not aware of it,” wrote Aminah Moore, NAFCU‘s senior regulatory affairs counsel, in a letter to FinCEN officials. “It would be a waste of a credit union’s resources to apply for a no-action letter and have it be approved only to then have the activity penalized during an examination by its prudential federal regulator because the regulator did not know that FinCEN had approved the activity.”

Background to the Issue

Congress required FinCEN officials to study whether a no-action letter process might be helpful to financial institutions, which could apply for and receive a safe-harbor assurance from the agency.

 

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