FinCEN Penalizes New York Credit Union for Failure to Manage High-Risk International Financial Activity

Federal Issues Criminal Enforcement International Anti-Money Laundering FinCEN Credit Union

On December 14, the Financial Crimes Enforcement Network (FinCEN) announced that it had assessed a $500,000 civil money penalty against a federally-chartered, low-income designated, community development credit union, for “significant violations” of anti-money laundering regulations. According to FinCEN, the credit union had historically maintained an AML program designed to address risks stemming from its designated field of membership in New York, NY. However, in 2011, the credit union began providing banking services to many wholesale, commercial money services business, some of which were located in high risk jurisdictions or engaged in high risk activities, without taking steps to update its AML program. As a result, the credit union was unable to detect and report suspicious activity and was left particularly vulnerable to money laundering.