Going “regtech” for compliance

Going “regtech” for compliance

Is your credit union compliant?

February 15, 2021

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:

  • Establishes a credit union's compliance responsibilities.
  • Communicates those responsibilities to employees.
  • Ensures that responsibilities for meeting legal requirements and internal policies and procedures are incorporated into business processes.
  • Reviews operations to ensure responsibilities are carried out and legal requirements are met.
  • Takes corrective action and updates tools, systems, and materials as necessary.

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:

  • Learn about the components of a CMS.
  • Understand the federal regulatory requirements related to compliance management systems.
  • Get insight into the impacts on your credit union’s compliance management program.
  • Learn how the agencies approach compliance management and how to mitigate potential issues

Join live on March 9, 12, and 19 for CUNA Compliance Management eSchool or register for the recorded compliance eSchool.