ALEXANDRIA, Va. (7/16/14)--Credit unions that were late filing their first quarter call reports and have received letters from the National Credit Union Administration describing penalties the agency is planning to assess have until close of business today to submit an agreement of consent with the regulator.
Credit unions that do not file their 5300 reports on a timely basis and evade the consent agreement could possibly find they are subject to other agency sanctions.
According to the NCUA, 104 credit unions filed late in the first quarter, down 80% from the previous quarter but unacceptable still to the NCUA with a stated goal of 100% compliance.
The NCUA announced civil money penalties for late filers in January, with several exceptions made for credit unions able to document filing hardships, such as a natural disaster or an unforeseen incapacitation of a key employee (News Now Jan. 16). However, for the most part penalties will be assessed per day according to ranges set out in the Federal Credit Union Act and based on a credit union's asset size.
The NCUA explains its zero-tolerance policy by noting late filings impact its ability to conduct effective off-site supervision and delay the release of quarterly industry data to the general public.
The NCUA is expected to have final information on late filers posted on its website within the next few days. Second quarter call report filings are due July 25.