ViClarity Compliance Update

Credit unions facing regulatory turmoil, AI challenges, and fraud risks amid evolving oversight and legal battles.

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.

Artificial Intelligence Regulations: Showdown at the O.K. Corral
Artificial Intelligence (AI) is the emerging technology version of the wild west. From the notable lack of regulatory framework to the over-generalized mitigation of risk, implementation can often look like a showdown at the O.K. Corral, rather than a focused, well-reasoned procedure. This is true of the credit union industry and of many others. Further, the extent to which AI is embraced varies greatly from industry to industry. Some industries seem to disregard the use of AI altogether while others are waiting for AI to generate a clone that can go to work in their place. Read more here.

Fraud: Credit Unions’ Least Favorite “F” Word
The word “fraud” is financial institutions’, including credit unions, least favorite “f” word. This past year, unfortunately, data breaches leaking sensitive consumer information have led to increased instances of fraud. Find resources here. 

Over It! Repeal of the CFPB’s Final Overdraft Rule and Other Regulatory Updates
The House Financial Services Committee has adopted a resolution to repeal the final overdrafts lending for very large financial institutions rule issued by the Consumer Financial Protection Bureau (CFPB) in December 2024. The Resolution, H.J. Res 59 was adopted in a 30-19 vote and had been introduced by Chairman French Hill. In order to continue the process to repeal the final rule, the resolution will now proceed to the House floor, where it can be adopted by a simple majority. Find more here. 

Workin’ 9 to 5: CFPB Subject to Lawsuit Over Legally Required Supervisory Activities
The federal regulatory landscape has been interesting lately. From instant changes of heads of agencies to a regulatory freeze, financial institutions, including credit unions, have been dealing with a litany of changes. Read more here.