The National Association of Federally-Insured Credit Unions (NAFCU) is supporting legislative efforts to strengthen and reform the Bank Secrecy Act (BSA) laws while combating illicit activity.
In correspondence to the House Financial Services Committee, NAFCU Vice President of Legislative Affairs Brad Thaler extended gratitude to lawmakers and urged them to mirror the beneficial ownership requirements found in H.R. 2513, which was introduced by Rep. Carolyn Maloney (D-NY).
The NAFCU maintains Maloney’s bill would help financial institutions comply with the new customer due diligence rule by requiring companies to disclose their true beneficial owners, to the Financial Crimes Enforcement Network.
“Credit unions support efforts to combat criminal activity in the financial system,” Thaler wrote, adding the institution works to prevent tax evasion, money laundering, and terror financing.
Under the guidelines of Maloney’s measure, officials said the information would then be used to create a database of beneficial ownership that would be available to law enforcement agencies and financial institutions – adding it recently advanced out of the House Financial Services Committee.
Thaler also maintains BSA requirements are a burden to implement and urged the committee to continue to look for ways to provide credit unions with regulatory relief by reforming and strengthening BSA laws.