In the good old days of compliance, credit union regulators often placed little to no emphasis on consumer compliance issues.
But with the advent of the Bureau of Consumer Financial Protection and more emphasis on consumer protection, other regulators have stepped up their compliance game “to ensure they are meeting their prudential regulatory obligations,” says Jared Ihrig, CUNA’s chief compliance officer, who spoke at the co-located CUNA Technology Council and CUNA Operations & Member Experience Council Conferences in San Francisco.
“Credit unions need to consider developing compliance management systems. For many credit unions, it is no longer sufficient to just have one compliance person. The fire is getting hotter.”
This new atmosphere has created several new “compliance truths,” Ihrig says:
Proper compliance management is crucial, Ihrig says. Look no further than recent events involving Wells Fargo, which resulted in 61 publicly reported consequences in the first 30 days following the announcement of sanctions, Ihrig says.
Avoiding such consequences requires instilling a “culture of compliance” at your credit union, Ihrig says.
He suggests starting with a compliance risk assessment that examines six things, including:
“It’s always better to find compliance issues internally,” Ihrig says, “rather than an examiner, an external auditor—or having a consumer file a lawsuit.”
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