FinCEN seeks comment on ‘no-action letter’ proposal

by David Baumann, CUCollaborate

The Financial Crimes Enforcement Network (FinCEN) is soliciting comment on whether it should develop a process for issuing no-action letters when they are requested by financial institutions.

“A no-action letter is generally understood to be a form of enforcement discretion where an agency states by letter that it will not take an enforcement action against the submitting party for the specific conduct presented to the agency,” FinCEN explained, in announcing the decision.

The National Credit Union Administration (NCUA) and other financial regulators are members of the network.

“A no-action letter process has the potential to spur innovation and enhance overall effectiveness of the [anti-money laundering and countering the financing of terrorism] framework and the implementation of financial institutions’ compliance programs,” FinCEN’s Acting Director Himamauli Das said.

 

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