FinCEN and Federal Regulators Issue CIP Exemption Order

FinCEN, the National Credit Union Administration (NCUA) and the federal banking regulators jointly issued an exemption from the Customer Identification Program (CIP) requirements for certain property and casualty finance contracts provided by financial institutions to small businesses (referred to as premium finance loans or premium finance lending).

FinCEN and the agencies determined the structural characteristics of premium finance lending present a low risk for money laundering activity and thus are unlikely to pose a risk to the safety and soundness of financial institutions. Click here for the order.

With this year’s changes to the bank secrecy act’s (BSA) Customer Due Diligence, It’s important than ever for credit unions to ensure their staff, leadership, board and other volunteers are keeping up on BSA/AML trainings.

Need BSA/AML training for your credit union before end of year? NJCUL hosts virtual BSA training sessions for staff and volunteers, click here to register and for staff and click here to register for volunteers.

in Compliance & Regulatory News