The White House’s reconciliation framework does not contain the credit union-opposed provision requiring increased reporting to the IRS, CUNA told credit unions on Thursday. CUNA, Leagues, and credit unions strongly pushed back against the proposed provision since it was first discussed this summer.
The proposal would have required financial institutions to submit reports of most account transactions, which CUNA said was an unprecedented overreach of the federal government and gave rise to numerous cybersecurity concerns with the government hosting the data.
In a letter to legislators in September, William J. Mellin, New York Credit Union Association president/CEO, said that that there is already a robust reporting structure in place ensuring credit unions do their part to report suspicious activity. Specifically, credit unions are subject to the BSA-AML, which are designed to detect tax evasion, money laundering and other crimes.