America's Credit Unions Backs End Of Federal Paper Checks, Expanded Fraud Info Sharing
By CU Today Staff —
WASHINGTON—America's Credit Unions is backing the Treasury Department's plan to phase out paper checks for federal payments, while also applauding new FinCEN guidance that expands the ability of financial institutions to share information related to fraud.
In a letter to Treasury, ACU said it supports implementation of Executive Order 14247, which directs the federal government to transition federal disbursements to electronic payments where permitted by law. America's Credit Unions said electronic fund transfers offer greater convenience for credit unions and consumers, reduce operational burdens and provide stronger fraud protections than paper checks.
The trade group acknowledged that some recipients could face challenges as paper checks are phased out, but urged Treasury to monitor the impact on populations that remain dependent on checks. It recommended that Treasury share demographic data on affected communities to help credit unions identify markets where additional financial education and resources may be needed to support the transition to electronic payments.
Separately, America's Credit Unions welcomed new guidance issued Friday by FinCEN expanding the fraud information-sharing program under Section 314(b) of the USA PATRIOT Act. The guidance clarifies that financial institutions may share information related to suspected fraud, reflecting recommendations made by the organization's Fraud Task Force during FinCEN's review of anti-fraud measures.
"Fraudulent activity often involves multiple financial institutions," said Andrew Morris, director of innovation and technology at America's Credit Unions. "FinCEN's updated guidance regarding information sharing across institutions will allow credit unions to more easily act when fraud is detected."
Morris said ACU supports continued efforts by FinCEN to strengthen voluntary information-sharing mechanisms between government agencies and financial institutions when suspicious activity is identified.
Originally reported by CU Today.