DCUC Urges Congress To Modernize AML Rules, Expand AI Use In Fight Against Fraud
By CU Today Staff —
WASHINGTON— The Defense Credit Union Council on Monday urged Congress to modernize anti-money laundering oversight, telling a House Financial Services subcommittee that credit unions serving military members and veterans are increasingly on the front lines of combating sophisticated financial crimes.
In comments submitted ahead of the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions' hearing on FinCEN oversight, DCUC said defense credit unions are regularly confronting money laundering, identity theft, cybercrime, synthetic identity fraud and romance scams targeting servicemembers, veterans and their families.
“Financial readiness is military readiness,” said Jason Stverak, DCUC chief advocacy officer. “When a servicemember or military family becomes the victim of fraud, the consequences can extend far beyond the financial loss. Fraud can disrupt deployments, damage credit, affect security clearances, and undermine family stability. Defense credit unions are on the front lines of this fight, and they need a modern regulatory framework that helps them identify and prevent criminal activity rather than forcing them to spend limited resources on outdated, duplicative, or low-value compliance exercises.”
DCUC expressed support for FinCEN's mission while encouraging Congress to advance a modern, risk-based anti-money laundering framework that enables financial institutions to focus resources on preventing criminal activity rather than outdated compliance requirements.
Among its recommendations, DCUC urged Congress to:
Military families remain frequent targets for organized fraud due to predictable pay schedules, frequent relocations, overseas assignments, and increased reliance on digital financial services. DCUC stressed that coordinated action among Congress, FinCEN, the Department of War, the Department of Veterans Affairs, financial regulators, and industry stakeholders is essential to protecting those who serve.
"Protecting military families from financial crime requires more than enforcement, it demands collaboration, innovation, and a regulatory framework that keeps pace with today's evolving threats," said Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. "Credit unions remain committed partners to our Nation’s military communities and when safeguarding America's financial system. We look forward to working with Congress and federal agencies to strengthen national security while preserving access to safe, affordable financial services."
Originally reported by CU Today.