Links in “Credit Unions”

The Federal Financial Institutions Examinations Council (FFIEC) announced that it is launching a pilot program in which it will assess the sufficiency of the financial institution’s cybersecurity policies and procedures. The Council stated that, of the 500 financial institutions to be reviewed, half will be credit unions of various assets sizes. [7/2/14]

NAFCU’s comment letter on NCUA proposed rule on associational common bonds relates concern with the threshold requirement to determine an association’s independence and purpose. Specifically, NAFCU is questioning the need for the one-year operation period before a new association can be considered for a membership expansion request. [7/1/14]

Three cases that reflect insider and vendor fraud highlight the need for strong internal controls and effective vendor oversight. In one case a used auto dealer engaged to sell a credit union’s repossessed cars sold the cars for one price, told the credit union the price was less and pocketed the difference. In another case, a credit union assistant branch manager discovered fraud on the part of one of her member services representatives and decided to cash in on the fraud, as well. [7/1/14]

NCUA has approved a charter for First Unity Federal Credit Union in McComb, Mississippi. The new credit union, which expects to open its doors in August, will serve three underserved counties. [7/1/14]

NCUA meant business when it said it would fine credit unions for filing their 5300 Call Reports after the filing deadline. Last month 84 credit unions were assessed fines with the largest individual fine being $10,000. [7/1/14]

CUNA has submitted a comment letter to NCUA in response to the proposed associational common bond rule in which it recommends that existing association groups that have already been approved be grandfathered in under the new rule. In the addition, CUNA has requested further information on several points, including the actual review process for new association groups and an appeal process. [6/30/14]

President Obama has issued a message from the president praising credit unions on the 80^th anniversary of the Federal Credit Union Act for their dedication to providing affordable financial services to their members. NCUA is marking the anniversary through a new video that draws attention to the credit union mission of promoting thrift. [6/30/14]

The Maryland DC Credit Union Association, the California Credit Union League, and the New Jersey League are looking at the feasibility of a collaborative enterprise to form a CUSO-like back office entity. The goal would be to standardize the three leagues IT, HR, and accounting and finance operations. [6/30/14]

Smaller banks and credit unions that lack the cybersecurity resources of the megabanks are not, nevertheless, excused from putting in place an adequate program to fight cyber risk. Regulators are now piloting cybersecurity assessments for more than 500 community-sized institutions. [6/30/14]

While this holiday isn't technically until June 30, we're celebrating early with a new episode of Risk Watch: E-SIGN in 5 Minutes or Less (Director's Briefing). Because more and more of our daily lives are moving online, including banking, E-SIGN is becoming more—not less—important. In this episode, AffirmX Analyst Dustin Stanley provides a high-level overview of this pertinent regulation. [6/27/14]