Does my credit union still need a Compliance Officer if we use outsourced solutions?

Generally, the answer is “yes”. However, it will depend on the nature of the outsourced solution. The role of a Compliance Officer is multi-faceted. A Compliance Officer must monitor new and changing regulations and determine whether they affect credit union operations. He/she must keep senior management and the Board apprised of regulatory changes and must ensure that staff members are trained on any new or changing regulatory requirements. He/she must ensure that the regulatory requirements are implemented in a timely and accurate manner. He/she must Continue reading →

What is Consumer Regulatory Compliance?

In the financial services area, consumer regulatory compliance refers to compliance with those laws and regulations that have been enacted to protect the unwary consumer and to ensure that consumers make informed financial decisions. There are a host of laws and regulations that have been enacted for this purpose, including among others the Truth-in-Lending Act (Regulation Z), the Truth-in-Savings Act (Part 707 of the NCUA Rules and Regulations), the Equal Credit Opportunity Act (Regulation B), the Home Mortgage Disclosure Act (Regulation C), the Electronic Fund Continue reading →

What Questions Should My Credit Union Ask When Choosing a Compliance Solution?

Like any good solution, the key is fit. The compliance solution should be scalable to meet the dynamic needs and risk factors of the Credit Union while remaining within the Credit Union’s financial capacity and/or constraints. Finally, a good solution must be a fit with respect to the organizational approach of the Credit Union and serve as a strong complimentary partner in the Credit Union’s overall Compliance Management System including key aspects such as monitoring, reporting and detection.

Focusing on the Fit of the solution Continue reading →

Why Should My Credit Union Consider a Shared Compliance Officer Solution?

Even the best compliance officer remains largely isolated within their credit union. While peer groups, conferences, and informal exchanges with other credit unions unquestionably aid the compliance officer, there remains a limit to those interactions. This is in contrast to the benefits of a shared compliance officer solution. The credit union gains exponential experience through combined synergistic efforts vs. relying on one individual.

A strong and shared compliance officer solution approach gives a credit union access to multiple applied reviews of key aspects of compliance. Continue reading →

Spring Cleaning: A Refresher on 2016 Regulation Adjustments

We’ve plowed right in to 2016 and groundhog day has come and gone. Everyone’s favorite Punxsutawney Phil luckily did not see his shadow, predicting an early thaw. However, the compliance new year brought about minor new regulatory changes; changes that could be casting their own shadow on your institution’s regulatory efforts. A quick review will help us all breathe a little easier as we look forward to April showers and May flowers.

We typically see a number of minor regulatory changes made effective on the first day of Continue reading →

CIP Requirements for Prepaid Cards: Keeping Up with the Bad Guys

As financial institutions become ever more vigilant in monitoring for suspicious activity, it seems that criminals find ever more inventive ways to launder money and commit financial crimes. One of the more recent tactics involves using “dirty” money to purchase prepaid cards that can then be used by, sold by, or transferred to other parties.

As a result, federal regulatory agencies recommend financial institutions apply their Customer Identification Program (CIP) when they issue prepaid cards.

A Joint Guidance

On March 21, the federal financial regulatory agencies issued a joint Continue reading →