FinCEN’s Proposed AML/SAR Reporting Rule for GSEs and FAQs on Prepaid Access; Upcoming NAFCU Compliance Webcast
Written by Shari R. Pogach, Regulatory Paralegal
In an ongoing effort to combat mortgage fraud, the Financial Crimes Enforcement Network (FinCEN) has issued proposed regulations to require government-sponsored (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks to develop anti-money laundering (AML) programs and to file suspicious activity reports (SARs) with the agency. Currently the GSEs file fraud reports with the Federal Housing Finance Agency (FHFA) which then files SARs with FinCEN when appropriate.
In order to streamline the process, the proposed regulations would require that the GSEs file SARs directly with FinCEN. Responsibility for examining the GSEs for compliance for the regulations would then be delegated by FinCEN to the FHFA. One benefit of the proposal is that the GSEs, including their directors, officers, and employees, will fall under the Bank Secrecy ActâÂÂs (BSA) âÂÂsafe harborâ provisions of liability from frivolous lawsuits by SAR subjects.
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FinCENâÂÂs Prepaid Access final rule, issued July 29, 2011, generated a lot of questions so the agency has released some guidance FAQs to financial institutions.  The guidance is meant to assist providers and sellers of prepaid access in understanding the scope of the final rule that imposes certain recordkeeping and reporting requirements under the Bank Secrecy Act (BSA).
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I feel sure that you'll want to join Steve and Sarah as they discuss hot credit union compliance topics and forecast whatâÂÂs ahead on the regulatory compliance front during NAFCUâÂÂs upcoming November 16 webcast. For thoese of you who attended Seminar, this is a shortened version of the hot topics session presented in Orlando. Items on the agenda include:
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The Consumer Financial Protection Bureau (CFPB) and its latest actions;
- Regulatory future of credit unions;
- The impact and consequences of the Durbin amendment;
- NCUAâÂÂs Inspector General report on examinations; and
- Business lending and section 1071 of Dodd-Frank.
The early registration savings of $100 ends on November 9. The webcast is open to all credit unions, simply call 1-800-344-5580 or register online here.
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