Compliance Center: FinCEN Administrative Ruling on Currency Transporters, Notary Training, and More

The Financial Crimes Enforcement Network (FinCEN) issued an administrative ruling to clarify the application of FinCEN regulations to currency transporters, including armored car services.

The Ruling discusses the evolution in services that some currency transporters provide and the circumstances under which they must register with FinCEN as money transmitters and comply with the relevant aspects of the Bank Secrecy Act (BSA). 

The Ruling contributes to a regulatory initiative by FinCEN to address ongoing concerns about transnational criminal organizations exploiting the lack of transparency in the movement of cash across the U.S./Mexico border via armored car services and other currency transporters as a means to launder their criminal proceeds.  Previously, FinCEN issued guidance to currency transporters on the correct and complete way to file the Report of International Transportation of Currency or Monetary Instruments (CMIR) (FIN-2014-G002) and a Geographic Targeting Order (GTO), requiring enhanced BSA reporting at two ports of entry along the U.S./Mexico border.

Free Notary Seminars Available

The Secretary of State’s office has scheduled free notary seminars throughout the state to give every notary an opportunity to become properly trained and educated about Oregon laws and good notary procedure.

Upcoming seminars:

  • October 7, 1:00 p.m. – 4:00 p.m. — Forest Grove, Community Auditorium
  • October 14, 9:00 a.m. – 12:00 p.m. — Astoria, Clatsop Community College
  • October 15, 9:00 a.m. – 12:00 p.m. — Newport, Oregon Coast Community College
  • October 16, 1:00 p.m. – 4:00 p.m. — Lebanon, Lebanon Justice Center
  • November 5, 1:00 p.m. – 4:00 p.m. — Eugene, Lane Community College
  • November 14, 1:00 p.m. – 4:00 p.m. — Hillsboro, Hillsboro Civic Center
  • November 19, 1:00 p.m. – 4:00 p.m. — Salem, Center for Business and Industry
  • November 20, 1:00 p.m. – 4:00 p.m. — Corvallis, Madison Building
  • December 4, 1:00 p.m. – 4:00 p.m. — McMinnville, McMinnville Public Library
  • December 10, 1:00 p.m. – 4:00 p.m. — Portland, Multnomah Building
  • December 18, 1:00 p.m. – 4:00 p.m. — Gresham, City Hall

For a complete schedule or to register, click here.

Compliance Question of the Week

Can a credit union open a donation or memorial account? If so, how do we open this type of account?            

Yes, your credit union can open donation and memorial accounts, but there are many concerns to think about before opening such an account.  The first issue is that there is virtually no way for the credit union to set up the account and have it be tax deductible unless someone creates an organization that meets the IRS requirements.  Someone would have to go through the steps to obtain a tax id number (TIN) and create a foundation or charity, or something along those lines, before any donations would be tax deductible. This may confuse a lot of member who assume that a donation would be tax deductible.

Second, a credit union can open a donation accounts using the member’s SSN who wanted to create the account, but donors need to be aware that any funds donated to the account belong to the account owner who is not obligated to spend the funds in any particular way.  Further, if the credit union set up the account itself, it would cause further tax and liability issues, so a consultation with an attorney and tax professional is strongly recommended before engaging in this practice.

Lastly, if a credit union decides to open a donation or memorial account for a member, the credit union should consider that they may get additional requests from other members in the future.  It would be difficult to determine which causes the credit union would be willing to open an account for and this could cause additional issues.

In summary, a credit union can set up a donation account using anyone’s SSN that wants to create the account. The credit union can even direct checks to be made payable to the John Smith Memorial Fund, for example. However, the risk is that the individual that controls the account is not required to use the funds for anything in particular and the donations are not tax deductible unless an actual IRS approved organization is created.  Therefore, if anything fraudulent were to happen, it may create negative publicity for the credit union.

Related Links:

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA has released a video of their most recent board meeting.

The NCUA released its most current economic update video.

Federal Reserve Board (FRB)

The FRB announced that it will implement a new deadline on January 2, 2015 of 12pm ET for the FedForward Regular Mixed, Premium Mixed D, and Select Mixed deposit options.

The FRB has released its third quarter Consumer Compliance Outlook.

Federal Housing Finance Agency (FHFA)

The FHFA announced that it is extending its comment period for the FHLB membership rule for another 60 days. The new comment period will end on January 12, 2015.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of September 30, 2014. The last update prior to this was September 24, 2014.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.