COMMENT CALL: As part of a proposed renewal of Bank Secrecy Act collection requirements, the Financial Crimes Enforcement Network (FinCEN) is asking for comments from credit unions and other financial institutions on reporting burdens under section 314(a) of the USA PATRIOT Act.
As The League explains in its ii Release No. 0071, the BSA regulations have, for many years, required credit unions to reply to FinCEN when it issues a 314(a) information request. Upon receiving a request, a credit union must review its records to determine whether it currently maintains or previously maintained any account for, or has engaged in any transaction with, an individual, entity, or organization identified in the request. If a match is found, the credit union must report the relevant information to FinCEN within two weeks.
No changes to the 314(a) rules have been proposed, but FinCEN is seeking comments because it “intends to conduct, in the future, additional assessments” of the burdens involved with BSA requirements. For example, FinCEN wants feedback on reporting, start-up technology, and potential third-party vendor costs, in addition to estimates on how long it takes to fulfill a section 314(a) request.
Make your voice heard
Please tell The League how you feel about the burdens and costs associated with 314(a) requests, so that our comment letter to FinCEN can accurately reflect your opinions and experiences. Send your thoughts to Paul Guttormsson at The League by Nov. 21. Our comment letter to FinCEN is due by Dec. 1.
Questions to consider
We understand that the 314(a) process can be operationally burdensome. This is particularly so for smaller credit unions with limited compliance staff, as it requires maintaining appropriate search capabilities, procedures, and documentation to ensure timely responses. Our comment letter will stress this. But we’d like real-world examples of how the system could be improved, which is why we ask for your input.
Please consider answering some or all of these questions:
- How frequently does your credit union receive 314(a) requests, and does that frequency feel appropriate given your size and risk profile?
- How much staff time or resources does your credit union typically dedicate to responding to each request? What aspects of the 314(a) search and response process are most burdensome or time-consuming for your credit union?
- Are there specific improvements (such as more detailed identifiers, clearer instructions, or different formats) that would make searches easier or reduce false positives?
- Do you believe the current timeframes for responding to requests are reasonable? If not, what would be more appropriate?
- Has your credit union ever received feedback or follow-up from FinCEN or law enforcement after responding to a request? If so, was it useful?
- Would advance notice for large or complex requests help you plan and allocate resources more effectively?
- What additional guidance, FAQs, or training would be helpful in conducting searches or interpreting requests?
- How could FinCEN improve the overall usefulness or efficiency of the 314(a) program from your perspective?
- Are there any broader changes or modernizations (such as automated systems, two-way information sharing, or periodic summaries) that you believe would make the program more valuable?