Prior to a July 12th Congressional hearing with Treasury Secretary Steven Mnuchin, U.S. Congressman Barry Loudermilk (R-11) engaged credit unions to gain insight into compliance issues felt by the industry. Secretary Mnuchin testified before the House Financial Services Committee, of which Rep. Loudermilk is a member. During the hearing Rep. Loudermilk posed questions to help address those issues on behalf of credit unions and banks on the burdensome requirements of the Custom Due Diligence (CDD) rules that recently went into effect from the Federal Financial Institutions Examination Council (FFIEC) on beneficial ownership. Our thanks to Rep. Loudermilk for reaching out to the industry to gain perspective and context on the impact of the recent rules and regulations, and to all the credit unions who have engaged with him to create a positive working relationship. Rep. Loudermilk represents Bartow, Cherokee and parts of Cobb and Fulton counties; through in-district meetings, Hike the Hill visits and regular communication with the Congressman and his staff, credit unions have developed a strong connection.
This hearing was the annual update on the state of the international financial system, and provided an opportunity to help illustrate the need for common sense regulations. During the hearing Mnuchin shared with the committee that they were looking at reform to the Bank Secrecy Act (BSA) among others, as well as providing consistency across regulators. The consistency perspective could be interesting, as Mnuchin also is head of the Financial Stability Oversight Council, a body of federal financial regulators that oversees systemic risk in the financial markets.
