World Council of Credit Unions Vice President and General Council Michael Edwards provided an update on the international credit union regulatory environment Monday at the CUNA/National Association for State Credit Union Supervisors Bank Secrecy Act Conference.
Edwards particularly emphasized a mistaken concept called “Know Your Customers’ Customers” (KYCC) that has resulted in many correspondent banks “de-risking” or ceasing to do business with certain categories of institutions.
The Financial Action Task Force (FATF) sets global anti-money laundering/countering the financing of terrorism (AML/CFT) policy and guidance.
Misinterpretation of a 2012 FATF recommendation has led to some prominent examples of banks closing credit unions’ correspondent accounts in Ohio and West Virginia, as well as in the United Kingdom and the Caribbean.
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