ViClarity Compliance Update

Round II Q & As on Privacy Policy, Change in Terms notice; and error resolution. Plus, FinCEN issues fraud notice; CFPB supervisory highlights, and elder fraud data.  

The Dakota Credit Union Association’s dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance. To read the complete articles/answers that are linked, you will need to log in with your username and password. If you have questions about establishing your members-only account with ViClarity, click here for detailed instructions or contact John Alexander in the DakCU office.
 
Q: When sending a Change in Terms notice for share accounts, does notice need to be sent to entire membership?
A: Truth in Savings states the advance Change in Terms notice needs to be sent to affected members. Since the notice is only required to be sent to those affected, the credit union is not required to send advance notice to its entire membership. However, from a member service perspective, the credit union is welcome to do so if it would like.
 
Q: What changes made to the Privacy Policy require the credit union to notify its membership?
A: The credit union must notify its membership of changes made to the Privacy Policy if any of the changes were made regarding disclosing any nonpublic personal information about a consumer to a nonaffiliated third party, other than as described in the initial notice provided to the consumer. The following are examples of when a revised Privacy Policy must be provided to the credit union’s membership:

• Disclose a new category of nonpublic personal information to any nonaffiliated third party;
• Disclose nonpublic personal information to a new category of nonaffiliated third party; or
• Disclose nonpublic personal information about a former customer to a nonaffiliated third party, if that former customer (i.e. member) has not had the opportunity to exercise an opt out right regarding that disclosure.

 
A revised notice is not required if you disclose nonpublic personal information to a new nonaffiliated third party that you adequately described in your prior notice.
 
Q: Can a financial institution require a consumer to file a police report or other documentation as a condition of initiating an error resolution investigation?
A: No. A financial institution must begin its investigation promptly upon receipt of an oral or written notice of error and may not delay initiating or completing an investigation pending receipt of information from the consumer.
 
Read more on these Q & As here.
 
FinCEN Issues Notice of U.S. Passport Fraud
The Financial Crimes Enforcement Network (FinCEN) has released a notice providing financial institutions with information regarding fraud schemes and identify thefts perpetrated with and through the use of fake passport ID cards. Working in close connection with the U.S. Department of State’s Diplomatic Security Service (DSS), FinCEN is putting financial institutions on notice to be on the lookout for counterfeit U.S. passport ID cards which can be used to perpetrate identity theft and various fraud schemes. Read more on the topic here.
 
CFPB Releases Supervisory Highlights Detailing Inaccuracies in Credit Reporting
The Consumer Financial Protection Bureau has published the spring edition of the 2024 Supervisory Highlights in which it details continuing issues with accuracy in credit reporting. According to the publication, the CFPB determined that consumer reporting companies were not reporting accurate information as they failed to exclude information resulting from alleged identity theft or human trafficking. In addition to supplying inaccurate information, the CFPB also found that companies that provide information to consumer reporting companies did not correct false or fraudulent information to consumer reporting companies. Review the full article here.
 
FinCEN Releases Analysis Highlighting Elder Fraud Data
The Financial Crimes Enforcement Network (FinCEN) has released a Financial Trend Analysis which focused on patterns and trends identified in the Bank Secrecy Act (BSA) data which were related to Elder Financial Exploitation (EFE). FinCEN and the U.S. Department of Justice – Elder Justice Initiative define EFE as the illegal or improper use of an older adult’s funds, property, or assets. The full article with findings can be found here.
 
NCUA Approves Notice of Proposed Ruling on Vital Records Program
The National Credit Union Administration (NCUA) Board approved an Advanced Notice of a Proposed Rulemaking (ANPR), which would update the record-keeping provisions of Part 749, and other similar provisions. The proposed rule specifies that the rules and regulations surrounding Part 749, as well as other record-keeping provisions, had not been reviewed for some time and may need to be adapted to the current times. Read more here.