Compliance Update with Amy K

​Free webinar from NCUA on Small CU Challenges; common cryptocurrency scams discussed by the FTC; and comments wanted for NCUA’s regulatory review. 

FREE “Small Credit Union Challenges” Webinar
The National Credit Union Administration (NCUA) will be hosting a free webinar on June 22 titled “Small Credit Union Challenges.” Registration can be found here.

The webinar will focus on areas including strategic planning, succession planning, using technology, credit union operations, and warning signs credit unions should heed. Participants can submit questions anytime during the presentation or in advance by emailing WebinarQuestions@ncua.gov. The email’s subject line should read, “Small Credit Union Challenges.”
 
“Preparing for the June 2022 Call Report Cycle” Webinar
The NCUA will also be hosting a free webinar for the upcoming June 2022 Call Report on June 23. Staff from the NCUA’s Office of Examination and Insurance will cover questions most asked during the March 2022 Call Report Cycle and discuss the improvements implemented for the June cycle. Register for this webinar here.
Participants can submit questions anytime during the presentation or in advance by emailing FAQ@ncua.gov. The email’s subject line should read, “Call Report Changes.”
 
Crypto Scams
The Federal Trade Commission (FTC) recently discussed the most common cryptocurrency scams that are being reported to them. The FTC reports that “since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams…The top cryptocurrencies people said they used to pay scammers were Bitcoin (70%), Tether (10%), and Ether (9%).”

Nearly half the people who reported losing crypto to a scam since 2021 said it started with an ad, post, or message on a social media platform.

From January 2021 to March 2022, the top frauds by reported cryptocurrency losses are – Investment related fraud ($575M); romance scams ($185M); business imposter ($93M); and government imposters ($40M).

Tips from the FTC –

• Only scammers will guarantee profits or big returns. No cryptocurrency investment is ever guaranteed to make money, let alone big money.
• Nobody legit will require you to buy cryptocurrency. Not to sort out a problem, not to protect your money. That’s a scam.
• Never mix online dating and investment advice. If a new love interest wants to show you how to invest in crypto, or asks you to send them crypto, that’s a scam.

The FTC has a number of resources to help consumer spot crypto scams that can be found here. Share with staff and members to educate them on how to avoid losing money to these scammers.
 
NCUA Regulatory Review – Comments Wanted
Every year the NCUA reviews one-third of its existing regulations. Comments are due August 16, 2022. As explained by the NCUA – “The NCUA’s goal is to ensure that all of our regulations are clearly articulated and easily understood. Comments are welcome on that aspect, as well as substantive suggestions for regulatory changes.”

The entire list of regulations under review this summer can be found here, but it includes regulations relating to FCU bylaws, FCU chartering and field of membership manual, loans to members and lines of credit to members, services for nonmembers within field of membership, truth in savings, mergers of insured credit unions into other credit unions.

If you have any thoughts or suggestions on potential improvements or changes, please submit them either directly to NCUA or feel free to send your thoughts to me and I will incorporate them into our comment letter.
 
Compliance Solution Highlight
AffirmX Risk Intel Center helps credit unions adhere to government regulations in a proactive and cost-efficient manner through a patented, cloud-based platform that is customized and branded for your institution.
The platform draws on internal and external data sources to develop risk-based priorities to help you quickly identify issues, reduce costs, and streamline compliance management practices.

Unlike checklist-based systems that place the burden for understanding compliance requirements on your team, Risk Intel Center combines easy-to-use workflows with expert analysis and a risk-based dashboard to help your team stay on top of compliance issues ranging from BSA and IT Security to Fair Lending and Enterprise Risk.
Don’t forget AffirmX can be tailored to meet the needs of your credit union including offering individual audits – such as BSA Independent Audit, Annual ACH Independent Audit, Annual SAFE Act Independent Audit and Website Compliance Review. Pick just one or bundle the four audits together!

For questions or pricing – contact Amy Kleinschmit at akleinschmit@dakcu.org.

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