DCUC Brings Credit Union Perspective to House Subcommittee Hearing, Calls for Modernized Anti-Financial Crime Framework

Comments to House Subcommittee call for smarter regulation, stronger public-private partnerships, and enhanced tools to combat evolving fraud threats targeting servicemembers and veterans. 

WASHINGTON, DC – Today, the Defense Credit Union Council (DCUC) submitted official comments, on behalf of credit unions serving military and veteran members, to the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions ahead of its July 21 hearing, "Oversight of the Financial Crimes Enforcement Network (FinCEN)." ​

​Within its letter, DCUC highlighted how credit unions are on the front lines of combating financial crime often targeting servicemembers, veterans, and their families. These increasingly sophisticated schemes include money laundering, identity theft, cybercrime, synthetic identity fraud, and romance scams. 
 
“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framework that helps them identify and prevent criminal activity rather than forcing them to spend limited resources on outdated, duplicative, or low-value compliance exercises.”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 strong 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laundering framework that enables financial institutions to focus resources on preventing criminal activity rather than outdated compliance requirements.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: 
 

• Modernize the Bank Secrecy Act to prioritize intelligence-driven supervision. 
  

• Strengthen information sharing between government, law enforcement, and financial institutions. 
  

• Support the responsible use of artificial intelligence to detect fraud and suspicious activity. 
  

• Tailor regulatory expectations based on institutional size and risk. 
  

• Increase coordinated efforts to combat scams targeting military and veteran communities. 
  

• Reduce duplicative regulatory burdens on community-based financial institutions. 
  

• Expand public-private partnerships to strengthen the nation's defenses against financial crime. 
  

 
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," says 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." 
 
DCUC concluded its comments by reaffirming its commitment to working alongside Congress, FinCEN, the National Credit Union Administration, the Department of the Treasury, and other federal partners to strengthen anti-money laundering efforts while ensuring regulatory policies remain effective, efficient, and appropriately tailored for credit unions serving military and veteran communities.