Compliance Update with Amy K

FREE webinar on share insurance; reporting guidance for businesses from FinCEN; compliance bulletin from the CFPB; and a solution for DakCU members. 

​by Amy Kleinschmit, Chief Compliance Officer 

NCUA Share Insurance Webinar
The National Credit Union Administration (NCUA) recently announced a free webinar relating to share insurance. As explained in the announcement, “share insurance is fundamental to the credit union system, and it’s a complex topic. To help credit unions better understand share insurance, the National Credit Union Administration has scheduled a webinar for Thursday, April 13, to discuss how member accounts are covered.”

NCUA staff from the Office of Credit Union Resources and Expansion will discuss topics including:

• Types of accounts covered by share insurance;
• What happens to share insurance coverage when credit unions merge;
• What happens to insurance of accounts if a member passes away; and
• General information about trusts.

The webinar takes place on Thursday, April 13 at 1:00 p.m. CT and will last approximately one hour. Register here.  
 
FinCEN Reporting Guidance for Businesses
The Financial Crimes Enforcement Network (FinCEN) recently issued guidance aimed at businesses to provide information for the beneficial ownership information reporting that is effective at the end of the year. The announcement, which can be found here, includes FAQs, informational one-pagers, and videos. Your small business members may have questions concerning this upcoming requirement; providing them these one-pagers may be helpful to start the educational process on what they will need to do to comply.

As you will recall – last year FinCEN issued their final rule concerning beneficial ownership information (BOI) which will be effective January 1, 2024. The announcement, final rule and fact sheet can be found here.

Briefly, this final rule identifies two types of reporting companies: domestic and foreign. A domestic reporting company is a corporation, limited liability company (LLC), or any entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe. A foreign reporting company is a corporation, LLC, or other entity formed under the law of a foreign country that is registered to do business in any state or tribal jurisdiction by the filing of a document with a secretary of state or any similar office. Under the rule, and in keeping with the CTA, twenty-three types of entities are exempt from the definition of “reporting company.”

Reporting companies created or registered before January 1, 2024, will have one year (until January 1, 2025) to file their initial reports, while reporting companies created or registered after January 1, 2024, will have 30 days after receiving notice of their creation or registration to file their initial reports.

Furthermore, reporting companies have 30 days to report changes to the information in their previously filed reports and must correct inaccurate information in previously filed reports within 30 days of when the reporting company becomes aware or has reason to know of the inaccuracy of information in earlier reports.

Please note – this rule does not change any requirements for credit unions to collect beneficial ownership information from your business members as required in FinCEN’s 2016 rulemaking. As discussed in the final rule, FinCEN intends to revise the 2016 CDD Rule through a future rulemaking process that will provide the public with an opportunity to comment on the effect of the final provisions of the BOI reporting rule on financial institutions' customer due diligence obligations.
 
CFPB Compliance Bulletin
The Consumer Financial Protection Bureau (CFPB) recently issued a compliance bulletin, which can be found here, regarding “Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts.”

Through its supervisory activities, CFPB examiners found that servicers of various types of student loans failed to maintain policies or procedures for distinguishing between loan types that are discharged in the regular course of a bankruptcy proceeding (generally, non-qualified education loans) and loan types that require consumers to initiate an adversarial proceeding and meet the “undue hardship” standard to receive bankruptcy relief.

CFPB examiners determined that student loan servicers engaged in an unfair act or practice, in violation of the Dodd-Frank Act, when they resumed collection of debts that were discharged by bankruptcy courts.
 
Compliance Solution – CU Policy Pro
CU PolicyPro provides credit union specific model policies and procedures and a full content management system! Be sure to take advantage of this dues supported member resource.

• Policies and procedures can be customized to fit your credit union's unique operations.
• Auditing tools make it easy to track and document changes, view activity dates, and view and restore previous versions.
• Assignments notify and remind users of upcoming policy and document reviews.
• Documents can be securely uploaded for viewing by authorized staff.
• Model content is updated to keep current with laws and regulations.

Contact Amy Kleinschmit with any questions.