ViClarity Compliance Update

​Comprehensive virtual training course for new compliance officers; August Q & A sessions; and a FREE webinar on P2P fraud claims. 

Compliance 101: An Essential Guide for New Compliance Officers
School is officially in session! This comprehensive, four-hour virtual training course is designed for aspiring or new compliance officers seeking to build a solid foundation. Whether you’re just starting to learn the regulatory ropes, need a refresher, or are transitioning from another role in the credit union, ViClarity's team of experts will equip you with essential knowledge, enhance your decision-making skills, and provide strategies for effective leadership. Register by September 6 for early bird pricing of just $299 – after September 6 price increases to $349. Limited spots available! Sign up today!
 
August 2024 Q & A
Q: If the member’s account is closed at the time of a Regulation E dispute, is the credit union required to conduct an investigation?
A:  Yes, the credit union is required to comply with procedures when an error is properly asserted to a member’s closed account. Source: CFPB Section 1005.11
 
Q: Can a Trusted Contact Person be added to a trust account or joint account?
A: Yes, that said, all parties on the account should provide authorization prior to adding a TCP and providing any account information. All parties must consent or the TCP cannot be added. Source: NCUA Trusted Contact
 
Q: What should a financial institution report for race or ethnicity when the information provided on a written application is illegible?
A: Instruction 8 of Appendix B to Regulation C, 12 CFR Part 1003 states that a financial institution “must report the ethnicity, race, and sex of an applicant as provided by the applicant.” The rule does not address illegibility. Issues associated with illegible applicant information may be addressed by a financial institution’s compliance management system. For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.
 
Free Webinar: Cracking the Case - A Closer Look at Fraud Claims & P2P Services
Is your credit union unsure of how to handle peer-to-peer (P2P) claims, or when you are required to investigate? Ponder no more! Join ViClarity Compliance Officer Sabrina Ducksworth-Brown as she explains the regulatory landscape surrounding P2P transfers, common P2P payment platform scams, the nuances of P2P transfers and how to handle fraud claims for Zelle, Cash App, Apple Pay, Venmo and other P2P payment platforms. The webinar takes place on Thursday, September 26, at 1:00 p.m. (CT). Register here.
 
CFPB to Propose Rule Addressing the use of “Doom Loops” and Chatbots
The Consumer Financial Protection Bureau (CFPB) is poised to address “doom loops” and the use of Artificial Intelligence in financial institutions after being charged to do so by the current administration. The White House published a Fact Sheet describing a new government-wide effort to control the use of “doom loops” in customer service and to manage the use of chatbots. The term “doom loop” refers to the maze of menu options and automated recordings that a consumer has to navigate before getting a live customer service representative. More on the topic here.
 
CFPB Issues Filing Information Guide for Small Business Lending Rule
The Consumer Financial Protection Bureau (CFPB) has issued the filing instructions guide for small business lending data collected in 2025. The guide includes directions meant to help small businesses subject to the rule in filing lending data with the CFPB in 2026. Full article here.
 
FinCEN Requests Comment on the Proposed Renewal of Record Retention Requirements
The Financial Crimes Enforcement Network (FinCEN) is requesting comments on a proposed renewal, without change, of existing information collection mandates as required by the Bank Secrecy Act (BSA). According to the regulatory provisions of the BSA, certain financial institutions are required to make and retain records associated with certain types of transactions, including funds transfers, transmittals of funds, and prepaid access transactions. The deadline for comment is October 15, 2024. Details available here.
 
NCUA Proposes Interagency Rule to Implement Data Standards
The National Credit Union Administration (NCUA) has proposed a rule, in conjunction with other federal agencies, that would establish data standards for certain information collections submitted to the NCUA and other financial regulatory agencies. The proposed rule is a requirement of the Financial Data Transparency Act (FDTA), which was passed in 2022. The rule is intended to promote interoperability of financial regulatory data across the agencies through the establishment of data standards for identifiers of legal entities and other common identifiers. Essentially, the NCUA, in conjunction with other federal agencies, is standardizing data to facilitate the ability to share information across federal agencies subject to the act. Read more here.
 
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.