Board Approves Proposed Rule to Allow Exemptions from SAR Requirements

ALEXANDRIA, Va. (Dec. 23, 2020) – The National Credit Union Administration Board unanimously approved, by notation vote, a notice of proposed rulemaking that would amend the agency’s Suspicious Activity Report (SAR) regulation.

The proposed regulation would permit the NCUA to issue, on a case-by-case basis, exemptions from SAR filing requirements to federally insured credit unions, when the exemption is consistent with safe and sound practices and can improve the effectiveness and efficiency of Bank Secrecy Act reporting. The proposed rule would also make it possible for the NCUA to grant exemptions, in conjunction with the Financial Crimes Enforcement Network, to federally insured credit unions that develop innovative solutions to meet Bank Secrecy Act requirements.

The NCUA expects these amendments will reduce regulatory burdens on federally insured credit unions and encourage technological innovation within the credit union system.

These proposed changes are part of a coordinated effort between the NCUA, FinCEN, and the federal banking agencies to improve the efficiency and effectiveness of Bank Secrecy Act compliance programs and facilitate greater innovation within the banking sector.

Comments on the proposed rule will be accepted for 30 days after publication in the Federal Register.

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