NASCUS Issues Comments on CUSO Requirements and Beneficial Ownership

May 6, 2021

NASCUS Issues Comments on CUSO Requirements and Beneficial Ownership

NASCUS has submitted comment letters to the National Credit Union Administration’s (NCUA) and Financial Crimes Enforcement Network (FinCEN) outlining the potential impact on the state-credit union system as it applies to reporting requirements for Credit Union Service Organizations (CUSOs), as well as granting access to a Beneficial Ownership database for state regulators.

Addressing the NCUA’s CUSO rule, NASCUS believes this issue could influence state credit unions as some state-owned CUSOs may now provide many products and services authorized under state law free of restrictions in place for federal credit unions (FCU) CUSOs – and, in some cases, states already have the authority NCUA is proposing now for FCU CUSOs. Furthermore, NASCUS opposes the extension of any additional reporting requirements to the state system resulting from an expansion of the federal system.

“Many of the changes proposed by NCUA, while expansive in some respects for FCUs, are not unprecedented. In some states, CUSOs are already authorized to engage in many of the lending activities of their credit union owners and clients. In addition, while CUSOs must serve primarily credit union members, they are not currently required to serve credit union members exclusively.”

Additionally, NASCUS proposes the following recommendations to the CUSO rule:

  • A limited amount of FCU investment in a state CUSO without triggering agency limitations on the state credit union CUSO.
  • Continued evaluation of changes that enhance a credit union’s ability to serve and engage members in the marketplace.
  • Continued partnership with NASCUS and state regulators to leverage supervisory oversight of CUSOs and third-party service providers.

As it applies to Beneficial Ownership, NASCUS’ position to FinCEN articulates that state regulators must have access to the same Beneficial Ownership database information that was granted to federal agencies in 2020. The Beneficial Ownership ANPR seeks initial public input on the implementation of the Corporate Transparency Act (CTA) and the establishment of standards and procedures for covered entities to submit information to FinCEN about their beneficial owners.

“State regulators play an important role in the administration of the Bank Secrecy Act/anti-money laundering (BSA/AML) framework, conducting an overwhelming majority of the BSA/AML examinations in the 2,020 state credit unions nationwide. It is the Reports of Examinations prepared by the state regulatory agencies upon which the federal regulator and FinCEN rely to identify shortcomings in BSA/AML compliance in the state credit union system. To maintain a seamless and effective oversight of the BSA/AML, FinCEN must include state regulators in the implementation of the CTA to the same extent as federal agencies. State regulators must also have access to FinCEN’s Beneficial Ownership data to the same extent as federal agencies.”

NASCUS believes designing the Beneficial Ownership Database in a manner that eases related customer due diligence requirements would allow financial institutions to re-allocate resources to monitoring and other BSA/AML obligations resulting in a more secure financial system. NASCUS is committed to working with FinCEN as the Beneficial Ownership Database is developed and the CTA implemented.

The copies of the NASCUS comment letters are available on the NASCUS website at:


CONTACT: Amanda Tuckey, Sr. Director, Communications and Marketing, NASCUS

NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.


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