Prediction: FinCEN To Make Example Out OfA Credit Union

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CHICAGO - (08/29/05) One expert on the Bank Secrecy Act(BSA) is predicting that federal regulators are going to“make an example” out of a credit union fornon-compliance. Carol Van Cleef, a partner with law firm BryanCave, LLP, and who frequently does training of examiners on BSA,warned regulators and credit unions at NASCUS’ annual meetingthat “FinCEN, I predict, is going to make an example out of acredit union. As we’ve seen in other industries and otherareas, to get an industry to really wake up and pay attention itoften takes an enforcement action to cause that.” At issue,said Van Cleef, is that many credit unions simply aren’ttaking BSA as seriously as they should, even though sheacknowledged the law is one giant gray area. Jeffrey Pratt, seniorregulatory specialist with FinCEN, later added, “We haveencountered many, many times credit unions that do not have a basicunderstanding. I’m not saying credit unions are the only weaklink in the system, but they are one of them.”

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