Agencies Release Fact Sheet to Clarify Bank Secrecy Act Due Diligence Requirements For Banks and Credit Unions that Offer Services to Charities and Non-Profits

November 2020
Agencies Release Fact Sheet to Clarify Bank Secrecy Act Due Diligence Requirements For Banks and Credit Unions that Offer Services to Charities and Non-Profits

(Nov. 19, 2020) – Federal financial institution regulatory agencies today issued a joint fact sheet clarifying that bank and credit unions compliance efforts to meet Bank Secrecy Act due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship.

The fact sheet highlights the importance of legitimate charities and nonprofit organizations having access to financial services and being able to transmit funds through legitimate and transparent channels, especially in the context of responding to the coronavirus pandemic. It also 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. Additionally, it provides examples of customer information that may be useful to banks and credit unions in determining those risk profiles.

The fact sheet does not alter existing Bank Secrecy Act/anti-money laundering legal or regulatory requirements or establish new supervisory expectations. It was developed by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Attachment
Joint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Non-Profit Organizations

Agency Contact Phone
Federal Reserve Darren Gersh 202.452.2955
FDIC LaJuan Williams-Young 202.898.3876
NCUA Laura Todor 703.518.1149
OCC Stephanie Collins 202.649.6870
Last modified on
11/19/20