Wednesday, June 3, 2015

Wall Street Journal: Treasury Report Finds Some CUs Vulnerable to Money Laundering

A confidential report from the Treasury Department’s Financial Crimes Enforcement Network has identified more than 50 credit unions that have increased vulnerability to potential money laundering.

The Wall Street Journal wrote:
"The report was based on data analysis and didn’t accuse the credit unions of any wrongdoing. One problem, according to a copy of the report reviewed by The Wall Street Journal, is their exposure to check-cashing companies and other similar firms that fall into a category called money-services businesses.

Those businesses in many cases are increasingly turning to credit unions for banking services because they have been driven away from big global banks, which have been stung by a series of fines and probes into money laundering over the past several years."

Read the Wall Street Journal story (subscription required).

1 comment:

  1. It is interesting. There is nothing inherently illegal or wrong with doing business with a MSB. Clearly though, more financial institutions are choosing not to, not because of potential AML pitfalls, but because it is not worth the regulatory scrutiny. Not as blatant as Operation Choke Point, but more and more, the Government is suggesting which legal businesses federally insured financial institutions should do business with.



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