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MCUA Comments on FinCEN’s Customer Due Diligence Proposed Rule

The Missouri Credit Union Association (MCUA) submitted a comment letter to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on Friday, October 3, 2014, highlighting concerns and recommendations from credit unions regarding FinCEN’s customer (member) due diligence proposal. As noted in their letter, MCUA supports the objective to improve the tracking of money laundering and terrorist financing, but continues to have significant concerns that the rule would impose additional regulatory compliance costs on credit unions and smaller financial institutions. MCUA is especially concerned about the proposed expansion of the “beneficial ownership” requirements that would result in procedures taking up to 30 minutes or more for each “legal entity” account opening.

MCUA urged FinCEN to minimize regulatory burdens for credit unions and smaller financial institutions, provide appropriate exemptions, and provide a delayed effective date that is more than 18 months from the issuance of the final rule. 

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