Week ahead: AML reform, CFPB comment deadlines and more

Congress this week is considering new legislation on anti-money laundering laws, along with other bills of interest to credit unions.

The AML bill, better known as the Corporate Transparency Act, is primarily directed at anonymous companies and would require organizations to disclose beneficial owners through a new customer due diligence rule.

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Often referred to as anonymous shell companies, the United States remains one of the easiest countries in the world where an organization can set up shop as an anonymous shell company, according to a letter authored by over 90 national security experts. Rep. Carolyn Maloney's bill (D-NY) would call for the creation of a beneficial ownership database that would be readily available to law enforcement and financial institutions. Experts in the industry say credit unions may shoulder less of a compliance burden if proposed legislation passes into law, though the current AML reform on the table is heavily contested.

As reported, a bipartisan group of senators has also drafted new AML legislation.

Wednesday, June 12 is also the deadline for credit unions and other financial institutions to file comments on a Consumer Financial Protection Bureau proposal to amend the transactional threshold within the Home Mortgage Disclosure Act.

“Specifically they’re looking to increase the closed-end mortgage loan threshold from 25 loans in the preceding two years to either 50 or 100, so they’ve provided a few alternatives,” said Alexander Monterrubio, senior director of advocacy and counsel at the Credit Union National Association.

Additionally, the CFPB is looking to extend the open-end lines of credit threshold which currently stands at 500 for an additional two years, and then permanently lower the threshold to 200 open-end lines of credit once the temporary extension expires.

Lawmakers in both chambers will be busy throughout the week with multiple pieces of legislation of import to credit unions.

The House Armed Forces Committee on Wednesday will mark up the National Defense Authorization Act for Fiscal Year 2020. Credit unions are currently waging a battle with banks regarding which institutions have rent-free access to military bases.

The House Appropriations Committee will also consider the 2020 budget, including allocating monies for the Community Development Financial Institutions Fund and the National Credit Union Administration's Community Development Revolving Loan Fund.

Other bills before Congress this week include:

• H.R. 2513, the “Corporate Transparency Act of 2019”
• H.R. 2763, the “Keeping Families Together Act of 2019”
• H.R. 3018, the “Ensuring Equal Access to Shelter Act of 2019”
• H.R. 3111, the “National Flood Insurance Program Administration Reform Act of 2019”
• H.R. 3141, the “FHA Loan Affordability Act of 2019”
• H.R. 3154, the “Homeownership for Dreamers Act”

Beyond specific legislation, the Senate Banking Committee on Tuesday will hold a hearing titled "Data Brokers and the Impact on Financial Data Privacy, Credit, Insurance, Employment and Housing," the House Financial Services Committee considers oversight of the student loan servicing market.