Credit Unions Press Fed to Strengthen AML Rules for New Payment Accounts

Washington D.C. - The Federal Reserve has proposed changes to its policies and rules for a new Payment Account, but America's Credit Unions are urging the Fed to tighten anti-money laundering (AML) safeguards before finalizing the rule.

In written comments, the credit unions expressed concerns about the proposal, pointing out that it should specify concrete BSA/AML safeguards and reissue the proposal for public comment before a final rule is issued. The credit unions also stated that while the proposed payment account's credit risk mitigants are sensible, operational risks warrant continued attention and specialized supervision.

The letter, submitted by America’s Credit Unions Innovation and Technology team, noted that the proposal appropriately preserves the Statutory Eligibility Criteria for account access and supports related proposed amendments to Regulations A and D. The changes would exclude the proposed payment accounts from the discount window and from earning interest on balances maintained at a Reserve bank.

The credit unions are urging the Fed to revise the proposal to include specific BSA/AML safeguards and reissue it for public comment before finalization. This is in response to an earlier request for information (RFI) and the letter highlights the importance of ensuring that the Payment Account's anti-money laundering provisions are robust.