FinCen Proposes AML, CIP Rules be Extended to Non-federally Insured CUs

The Financial Crimes Enforcement Network (FinCEN) issued a proposed rule imposing -- for the first time -- anti-money laundering (AML) program and Customer Identification Program (CIP) requirements for banks without a federal functional regulator, including non-federally insured credit unions.

The proposed rule would prescribe minimum standards for AML programs and include these institutions in CIP, thus “eliminat[ing] the present regulatory ‘gap’ in AML coverage” and “reduc[ing] the opportunity for criminals to seek out and exploit banks with less rigorous AML requirements.”

Covered institutions are already subject to various Bank Secrecy Act recordkeeping and reporting requirements, so FinCEN said the proposal would not be “unduly burdensome.”

Read the proposed rule.