§1772d Forfeiture of Organization Certificate for Money Laundering or Cash Transaction Reporting Offenses

Summary

If a credit union is convicted of a crime under 18 U.S.C. 1956 or 1957, the Attorney General must send the Board a written notice and a certified copy of the court’s conviction. After that notice, the Board must tell the credit union it plans to end the credit union’s charter and official authority to operate, and it must set a hearing before doing so. If the credit union is convicted under 31 U.S.C. 5322 or 5324 after the Attorney General’s notice, the Board may (but does not have to) do the same. Proceedings must follow 1786(j). In deciding whether to end the charter, the Board will look at who knew about or took part in the wrongdoing (including directors, committee members, and senior executive officers — top managers defined by the Board), whether the credit union had prevention policies, how much it cooperated with law enforcement, what new internal controls it added afterward, and whether closing it would harm local banking services. A good‑faith buyer or successor who did not acquire the credit union to avoid this rule is not covered.