IN COMMENT LETTER, STATE SYSTEM SUPPORTS EXEMPTIONS FROM SARS

Feb. 23, 2022

Comment supports exemptions from SARs

A comment letter supporting NCUA’s proposed rule about credit union exemptions from filing suspicious activity reports (SARs) has been submitted by NASCUS, which also makes a number of recommendations for some changes. The letter supports NCUA’s proposed rule on the Bank Secrecy Act (BSA) providing the agency leeway to grant federally insured credit unions (FICUs) exemptions from NCUA rules implementing Suspicious Activity Report (SAR) filing requirements. NASCUS wrote that emphasizing substantive SAR results over procedural compliance will result in “SAR data that is potentially of greater use to law enforcement and national security stakeholders and is consistent with the intent and spirit of the BSA.”

NASCUS made a number of recommendations for minor improvements in the proposal, intended to clarify the rule and reduce regulatory burden for credit unions. Among them:

  • Commit to consulting with the appropriate state regulator when evaluating a request for an exemption;
  • Clarify what “classes” or “select groups” may apply for an exemption or have a third party apply for an exemption on their behalf from certain SAR filings;
  • Specify to which NCUA office to send a request for exemption.

The complete text of the NASCUS comment letter is on the NASCUS website at:

NASCUS Comment letter: Proposed Rule: Bank Secrecy Act – RIN 3133–AF25

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