ViClarity Compliance Update

AI risk tips; May Q&As; fintech partnerships; and more!

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 DakCU's John Alexander.​ 

Town Hall Webinar: AI: Risk Mitigation Tactics for Common Implementation Processes
Webinar Date & Time: May 21, 2025 1:00 PM CST / 12:00 PM MST
As Artificial Intelligence (AI) becomes more widely adopted and integral to credit union processes, you need to know how to create appropriate risk mitigation tactics. In this quarter's town hall webinar, ViClarity Compliance Officer Kayley Grant will share how to mitigate potential risks and liabilities in your compliance operations while creating a safe environment for AI to help your credit union prosper. Join us to learn about AI implementation risks and benefits, the AI regulatory landscape, and how it all affects your credit union! Register here. .

May 2025 Q&A
Q1: If a board member is stepping down mid-term and the board has determined a replacement to appoint for the rest of his term, my chair wants to know if they can invite this individual to a board meeting before being appointed to see what it is about. Is this allowed? 
A: There’s nothing that would prohibit this unless there’s specific verbiage in the credit union’s bylaws or policies. Therefore, it would be a business risk decision. That said, it’s not uncommon for the board to invite individuals to sit in on board meetings. Ultimately, they have this discretion. However, based on what is discussed, it might be a good idea to have the prospective director sign a confidentiality agreement prior to the meeting; otherwise, have them sit in on certain parts of the meeting and step out if there is sensitive information that is discussed or voted on. The board will also want to record this individual’s attendance in the board meeting minutes for transparency purposes and ensure this individual does not receive a board packet, does not participate in discussions or have voting authority. Their attendance should only be that as an observer.
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Find more Q&As here.
 
Dynamic Duos: Partnerships Between Fintechs & Financial Institutions Increase
Partnerships. Love them or hate them, an extension of operations can be a necessity in volatile times, whether it involves a third-party vendor offering a digital payments solution or compliance services. Learn more here.

Debanked! DOJ Creates Task Force Targeting Debanking
The term “debanking” has been developed in recent years to signify a loss of banking services or privileges at a financial institution, including the ability to have a credit card or hold an account due to an individual’s political, religious, or other prohibited factors. The process divests the account holder of their right to hold an account based on the premise that the account holder’s beliefs expose the financial institution to increased risk. Find out more here. 

To Be or Not to Be? Things to Consider When Deciding if Implementing AI is the Right Choice
Have you ever Googled “types of AI”? When you do, there will be a litany of results that both overwhelm and amaze. When there’s that many options to choose from, how does your financial institution know which one is the most appropriate for its day-to-day operations? Read more here. 
 
You Take That Back! CFPB Asks Court to Vacate Medical Debt Rule
The Consumer Financial Protection Bureau (CFPB) has asked the U.S. District Court for the Eastern District of Texas to vacate the medical debt rule in a joint filing motion. The Medical Debt rule was finalized January 2025 and prohibits financial institutions from considering outstanding medical debt in credit eligibility decisions and prohibits credit reporting agencies from furnishing the information to financial institutions. Continue reading here.
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