Anti-Money Laundering and Countering the Financing of Terrorism Programs

GECU Federal Credit Union supports the NCUA's proposed rule to modernize AML/CFT programs by adopting a risk-based framework that focuses on program effectiveness rather than just procedural compliance. The commenter requests additional guidance and clarity on specific definitions of "significant" failures, the consultation process with FinCEN, and the notification procedures for supervisory actions.

America’s Credit Unions supports the proposed AML/CFT program modernization but urges the NCUA to ensure consistent supervision with FinCEN and to focus on significant, systemic failures rather than minor technical issues. They advocate for practical implementation requirements, clear definitions of supervisory actions, and robust protections for confidential and privileged information.

The Institute of International Bankers (IIB) supports the proposed AML/CFT program rules, particularly the shift toward a risk-based approach and the reduction of "check-the-box" compliance burdens. They request specific clarifications regarding the distinction between "establishing" and "maintaining" programs, definitions for "significant or systemic" failures, and more flexibility for banks to update risk assessments and allocate resources based on their unique risk profiles.

The Michigan Credit Union League is commenting on behalf of its members, expressing general support for the proposed AML/CFT program framework while advocating for specific clarifications. They request clearer distinctions between mandatory requirements and supervisory guidance, more precise definitions for "significant failures," and a risk-based approach that avoids overly prescriptive "one-size-fits-all" requirements for smaller institutions.

Kharon, a risk intelligence company, supports the proposed AML/CFT rule because it allows financial institutions to shift resources from low-value legacy requirements to high-risk, outcome-driven practices. They argue for reducing burdens related to model validation, list-based screening, and rigid risk assessments in favor of using open-source intelligence and transaction monitoring to address national security threats.

The Illinois Credit Union League (ICUL) supports the proposed rule to align with the Anti-Money Laundering Act of 2020, specifically praising the shift toward a risk-based framework rather than a strict compliance regime. They request additional clarity on distinguishing between "establishing" and "maintaining" programs, as well as guidance on incorporating AML/CFT Priorities into risk assessments.

Elliptic Inc., a blockchain analytics provider, supports the proposed alignment of bank and credit union BSA program rules with FinCEN's effectiveness-based framework. They argue that the agencies should develop joint examination guidance, recognize blockchain analytics as a core indicator of program effectiveness, and work with the FFIEC to update examiner training and manuals to address digital asset risks.

ORNL Federal Credit Union supports the proposed risk-based AML/CFT framework, noting that it aligns with longstanding supervisory expectations and allows for more efficient resource allocation. However, the credit union requests additional clarification on key terms like "reasonably designed" and "significant or systemic failure" to ensure consistent application and avoid regulatory uncertainty.

The Digital Chamber, a trade association representing the digital asset and blockchain industry, expresses strong support for the proposed rule to modernize the Bank Secrecy Act. They argue that the rule's focus on "effectiveness" over "check-the-box" compliance is essential for the digital asset sector, though they request specific clarifications to ensure regulators do not use subjective judgment or impose unworkable "prompt" update requirements.