Fact sheet aims to clarify BSA due diligence requirements when dealing with charities, non-profits

The federal banking and credit union regulators Thursday released a fact sheet meant to clarify Bank Secrecy Act due diligence requirements for credit unions and banks that offer services to charities and non-profits.

The fact sheet issued by the agencies – including the Federal Reserve, Federal Deposit Insurance Corp. (FDIC), National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) – highlights the importance of legitimate charities and nonprofit organizations having access to financial services.

In a joint release, the agencies said the fact sheet also addresses the ability of those groups to transmit funds through legitimate and transparent channels, especially in the context of responding to the coronavirus.

Further, the agencies said, the fact sheet clarifies that charities and nonprofit organizations as a whole do not present a “uniform or unacceptably high risk of being used or exploited for money laundering, terrorist financing, or sanctions violations, and that banks and credit unions must develop risk profiles that are appropriate for the risks presented by each customer.”

Agencies release fact sheet clarifying BSA requirements with charities, non-profits

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