Banking

Credit union regulator approves proposal to ease SAR exemptions

The National Credit Union Administration board approved a proposal amending the regulator’s policies regarding suspicious activity reports from credit unions.

In a notation vote on Wednesday, the board unanimously approved a proposal to allow NCUA to exempt federally insured credit unions from SAR-filing requirements on a case-by-case basis, so long as the exemption is consistent with safe and sound practices and improves effectiveness and efficiency of Bank Secrecy Act reporting.

In conjunction with the Financial Crimes Enforcement Network, NCUA will also be able to grant exemptions to credit unions “that develop innovative solutions to meet [BSA] requirements,” the agency said in a press release.

The amendments are intended to reduce the regulatory burden on the institutions the agency oversees and spur innovation in the credit union space.

NCUA said the changes are part of a broader effort between it, FinCEN and other federal banking regulators “to improve the efficiency and effectiveness of [BSA] compliance programs and facilitate greater innovation within the banking sector.”

The proposal will be open for a 30-day comment period after publication in the Federal Register.



 

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