![]() ![]() This can include increased regulatory scrutiny, reputational damage, and loss of business. The consequences of non-compliance can be severe and go beyond fines and penalties. Certain regulations, however, as is the case for credit unions, can be industry-specific. Financial institutions as a whole are subject to AML regulations that can overlap across industries. The purpose of AML regulations is to help financial institutions detect and deter money laundering and other financial crimes. As a result, credit unions are subject to BSA compliance requirements, including the establishment of an AML compliance program.Ĭredit union compliance is the process of ensuring that a credit union has procedures in place to meet regulatory requirements designed to prevent money laundering and terrorist financing. For a time, credit unions lacking a federal functional regulator were exempt from certain BSA requirements, however, the Financial Crimes Enforcement Network (FinCEN) passed a final rule that changed that. However, this article is not intended to provide legal or other professional advice, and should not be relied on as such.Ĭredit unions face many of the same money laundering risks as other depository financial institutions and are subject to similar Bank Secrecy Act/Anti-Money Laundering (BSA/AML) standards. Disclaimer: The contents of this article are intended to provide a general understanding of the subject matter. ![]()
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