NCUA on Supervisory Guidance; FinCEN on BSA Recordkeeping

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The National Credit Union Administration (NCUA) held open and closed meetings this past week. During the opening meeting, the board approved a proposed interagency rule that codifies an interagency statement on the role of supervisory guidance issued by the NCUA and other federal financial regulatory agencies in September of 2018.

The 2018 statement made clear that, unlike a law or regulation, supervisory guidance does not have the force and effect of law. The proposal would also clarify that the 2018 statement, as amended, is binding on the agencies.

This proposed rule was approved for public comment earlier by the Federal Deposit Insurance Corp., the Office of Comptroller of the Currency, the Consumer Financial Protection Bureau, and the Federal Reserve Board. Comments will be accepted for 60 days after publication in the Federal Register.

Immediately following the open meeting, the board considered two personnel matters in a closed session.

FinCEN and FRB Propose Changes to BSA Recordkeeping, Travel Rule Regs
The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board (FRB) have issued a proposed rule modifying the threshold in the Bank Secrecy Act (BSA) rule that requires financial institutions to collect and retain information on certain funds transfers and transmittals of funds.

The proposed modification would reduce this threshold from $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States. The agencies are also proposing to clarify the meaning of “money” as used in these same rules to ensure that the rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC), such as cryptocurrency.

Comments on this proposed rule may be submitted on or before Nov. 27, 2020.

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