Compliance is always top of mind for credit unions. The scope and scale of requirements today demands a comprehensive approach to compliance, with an eye toward issues that regulators prioritize.
CUNA News recently spoke with CUNA Chief Compliance Officer Jared Ihrig about the compliance landscape for credit unions in 2018.
CUNA News: In general, what should credit union compliance staff be thinking about most this year?
Ihrig: Credit unions should definitely focus on the areas outlined in NCUA’s supervisory priorities letter (No. 17-CU-09), paying close attention to Bank Secrecy Act (BSA) compliance, cybersecurity, Home Mortgage Disclosure Act (HMDA), and Military Lending Act (MLA) requirements.
In addition, website accessibility under the Americans with Disabilities Act (ADA) should remain a high priority with the recent spate of predatory lawsuits targeting credit unions and other businesses. The Web Content Accessibility Guidelines (WCAG) 2.0 developed by the World Wide Web Consortium (W3C) have become the de facto standard in the absence of regulatory guidance from the Department of Justice.
Credit unions operating in the commercial and member business lending areas should pay close attention to NCUA’s examiner guidance, issued in late 2016. Among other things, credit unions should make sure they include an adequate level of content and detail in the policies and procedures called for in the guidance.
CUNA News: What new compliance requirements should credit unions be focused on in 2018?
Ihrig: Complying with FinCEN’s Customer Due Diligence (CDD) rule that goes into effect on May 11, 2018, should be on a credit union’s to-do list this year.
In addition, credit unions will be focusing on implementing the new HMDA requirements that took effect on January 1, 2018, and they’ll continue to work through the MLA’s credit card provisions, which went into effect in October 2017.
Credit unions also should give serious consideration to their compliance with Fair Lending laws and regulations. Any credit union looking to serve (or already serving) members in the marijuana or marijuana-related business industry should take a very close look at Attorney General Jeff Sessions’ rescission of the Cole Memos, and make sure they’re paying attention to any potential changes in the FinCEN guidance that might come along with that.
CUNA News: What questions are credit unions posing to CUNA for 2018 and beyond?
Ihrig: Credit unions ask CUNA all types of compliance questions on every regulation, from “A-to-Z.”
Some popular topics include questions regarding BSA compliance, adverse action notices, advertising requirements, what is and isn’t a finance charge under Reg Z, member business loans, loans to servicemembers under the Servicemember Civil Relief Act—the list is endless.
CUNA News: What are CUNA’s plans to ensure it remains the No. 1 resource for credit union compliance this year?
Ihrig: We’re working on some extremely exciting developments in CUNA Compliance that I’m not yet at liberty to discuss more broadly.
But suffice it to say, we understand and appreciate the level of burden that credit unions face to ensure they’re in compliance with the myriad laws and regulations thrown at them.
On a daily basis, we strive to ensure that our compliance resources are as accurate and informative as possible, to make compliance a little bit easier for credit unions to serve their members and assist with keeping ahead of the game.
CUNA News: Where is the best place for credit unions to go to ensure they’re getting the latest compliance information from CUNA?
Ihrig: Be sure to stay on top of CUNA’s CompBlog and the discussion feeds on CUNA’s Compliance Community. And, for more in-depth research, check out CUNA’s e-Guide to Federal Laws and Regulations.