On June 30, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a list of eight crimes (referred to as “public priorities”) whose proceeds pose the greatest threat to the U.S. financial system as mandated by the Anti-money Laundering Act of 2020 (AMLA) enacted at the beginning of 2021.

These eight priorities, in no particular order, are the following:

• Corruption
• Cybercrime, including relevant cybersecurity and virtual currency considerations
• Foreign and domestic terrorist financing
• Fraud
• Transnational criminal organization activity
• Drug trafficking organization activity
• Human trafficking and human smuggling
• Proliferation financing

While FinCEN’s statement clarified that these priorities do not create a requirement to change current BSA/AML programs, a recent article in CUNA’s Compliance Blog noted that credit unions should begin to consider how they will incorporate the priorities into risk-based compliance programs. For example, assessing the potential related risks associated with the products and services offered, the members served, and the geographic areas in which they operate, are just a few important areas to consider.

Assessing your risks proactively

Although these priorities will not be included in the examination procedures until regulations on how to incorporate them are issued, there is no time to waste. It is time to be proactive and assess your credit union’s relevant risks. A well-publicized “failure” in any of these priorities should be considered as a risk to your institution as articulated by your Enterprise Risk Management program, even if it is a reputation risk.

Think about how your membership and community would view your credit union were it found holding a share account for a business that was a front company for a human trafficking operation. Or take an even more common example – if your organization was found engaging in skirting the local regulations concerning a marijuana business. And let’s not forget the many well-known, respected financial planners and lawyers who have been found to be involved in elder abuse over the years.

No credit union wants to be named in the news as holding the exploiters’ or victim’s account unless it was your credit union that alerted the authorities.