Pentagon Federal Credit Union has been recognized by the U.S. Treasury’s financial intelligence unit – the Financial Crimes Enforcement Network – for its “award-winning” compliance efforts that led to “successful prosecution of a significant criminal case.”
In a letter to James Schenck, president and CEO of the $22.4 billion-asset credit union, FinCEN acting director Jamal El-Hindi thanked the credit union for its Bank Secrecy Act reporting, which resulted in “substantial contributions” that helped the network. PenFed contributed to one of six “significant criminal cases,” wrote El-Hindi, garnering FinCEN’s third annual Law Enforcement Award.
El-Hindi also wrote “information reported under BSA was critical to prosecutorial success,” adding that without the assistance of institutions like PenFed, such investigations “may not have been pursued.”
Noting that FinCEN has to “limit details” that can be publicly shared about each case, El-Hindi nonetheless sought to recognize PenFed for its “valuable contribution.”
“We hope that this letter underscores the importance of your institution’s compliance efforts, and reminds everyone contributing to anti-money laundering compliance at your institution -- from the CEO to the front-line service staff -- that their efforts truly make a difference each and every day,” the FinCEN chief added.
In response to the recognition, Schenck indicated that PenFed has developed a “strong culture of compliance” with BSA regulations as it works with FinCEN, the National Credit Union Administration, and other government agencies to detect money laundering and financial criminals.
“At PenFed, we have a team of teams working together on compliance,” Schenck added. “Every executive vice president oversees some forms of compliance, and compliance responsibilities extend far beyond executives. We provide compliance training to all members of the board of directors, the supervisory committee, and all full-time employees.”
