Credit unions lower source-of-funds threshold

The lower limit for the source-of-funds declaration at some credit unions has been reduced to $10,000.

Donna Peters-Hayde, officer in charge at Agricola Credit Union, said the move was "to safeguard us against fraudulent bills until December 31.”

She added that the organisation does not really deal with cash since it only issues cheques.

“It’s only when customers bring in cash we deal with it, and we have since been getting both the old and the polymer $100 bills.”

The cut-off date for accepting old $100 bills at Agricola is in keeping with the Central Bank’s deadline of December 31.

Peters-Hayde also said, so far the credit union has had no complaints from customers.

Members of the TT Police Credit Union (TTPCU) also have to fill out a source-of-funds declaration for $10,000 and over until the deadline for submitting cotton $100 notes on December 24.

Newsday was told the TTPCU, like Agricola, does not have cash to change, but is accepting cash payments of both cotton and polymer bills until December 24.

A notice posted on the Eastern Credit Unions' Facebook page on Friday told members, all its branches will be open 9 am-1 pm on December 14 to facilitate the transition to the new bills.

The Muslim Credit Union (MCU), not being licensed as a bank, is different. Razia Mohammed said it has to go to the bank like everybody else, so there are some inconveniences.

A subsequent release from its president Jamsheed Khan said: “Although we share the same concern as most of the population and businesses with regards to the short period of time for the transition, our staff is highly trained in anti-money laundering and FIU protocols. All due diligence will be followed to ensure that no improper transactions will be accommodated.

"However, we expect an extra surplus of cash as members with emergency funds, that will normally be kept at home, will now want to make deposits until things ease up with the banks. We intend to have additional security measures put into place to accommodate a smooth operation.”

He also said the MCU will not take cash at the last hour, and members should take advantage of the December 27 deadline.

He said Muslims were not unique in choosing to keep their money at home "for many reasons, fear of interest contamination, personal security, exorbitant bank rates, and long lines."

He said the credit union's core values compelled it to operate as "the only interest-free financial institution governed by the Co-operative Societies Act."

Although the credit union is "member-driven," Khan said, "We will accommodate all Muslims deposits as long as it is genuine."

He said all emergency, hajj, zakaat and sadaka (charity) funds could be deposited at the MCU.