Credit unions manage their exposure to compliance risk through a wide variety of systems, ranging in complexity and effectiveness.
The National Credit Union Administration and Consumer Financial Protection Bureau expect every credit union to have an effective compliance management system (CMS) that meets regulatory criteria. A CMS should address all compliance responsibilities, according to the NCUA.
According to the CFPB, a CMS:
There are two primary ways to implement and manage a CMS: workforce and technology. Workforce means policies and procedures set up by the credit union board are managed and monitored by credit union team members. Technology refers to software tools that assist with monitoring and tracking compliance updates and regulatory milestones. Most effective systems combine workforce and technology approaches to ensure compliance.
To learn more about the advantages of a CMS, attend the CUNA Compliance Management eSchool. Attendees will: