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September 04, 2008



So, based on the informal opinion at NCUA, no NCUA examiner will EVER question an FCU for not shutting down an account where the Bank Secrecy Officer has a hunch money laundering is occuring but no proof is actually obtained until the FBI comes kncking on the FCU's door for forfeiture of the funds int he acocunt and the BSA Officer is escorted from the building in handcuffs for not compying with BSA? This legal opinion seems a wee bit overbroad in not allowing FCU's who are required by law to know their members from not reasonably racting to their knowledge. Of course, my opinion and $4.00 will get you coffee at Starbucks!

Anthony Demangone

Peter: I hear you. This certainly boxes credit unions in who have members doing naughty things with their accounts. Absent some actual evidence, our hands are tied if we wanted to use "suspension of services" policies. BTW, my Starbucks order is usually under $2! So, your opinion and $4 is worth far more than one coffee to me! :)

Rob Rutkowski

Excellent post, Anthony. Your example would require a SAR filing and then an ongoing filing every 90 days until it stopped happening. The CU would want to stop the activity quickly, however, because if the money were being used to fund terrorist activities, it would be game over for the CU.

John Guide

Can one become a member of a credit union by only opening a checking account without a regular share account?

Anthony Demangone

Hypothetically, yes. NCUA does not mandate what type of account a member must hold. However, here's the rub. Most credit unions hold the one share at par value. And technically, holds on these accounts are governed by Reg CC. So, how does one place a permanent hold on a checking account? I'm not sure. But I'm open to suggestions.

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