Customer Due Diligence and Beneficial Ownership (NEW InfoSight Topic!)

On May 11, 2016, FinCEN published a final rule regarding Customer Due Diligence (CDD) Requirements for Financial Institutions.  This rule amends the Bank Secrecy Act regulations and formalizes several existing practices related to the monitoring of customer activity, and adds new requirements that covered financial institutions establish and maintain written procedures that are reasonably designed to identify and verify the beneficial owners of legal entity customers.   Financial institutions must comply with this new rule by May 11, 2018.

Four core elements of CDD described in the final rule are required for all AML programs, those being the:

  1. Identification and verification of customers;
  2. Identification and verification of beneficial owners of legal entity customers, subject to certain exceptions;
  3. Development of a customer risk profile through an understanding of the nature and purpose of the customer relationship, and
  4. Ongoing monitoring for reporting suspicious activity, and on a risk basis, maintaining and updating customer information.

Several of these elements are part of the existing customer identification program (CIP) rules, with others implied through suspicious activity reporting (SAR) requirements.  The beneficial ownership identification requirement is new and not part of any existing rule.

For additional information, click here for the topic.

Review the information today to help your credit union remain in compliance.


TRID Rule Revision Proposal Published with Request for Public Comment

The CFPB has published in today's Federal Register, at 81 FR 54317, the proposal it announced on July 29 to amend Regulation Z to clarify and refine the Bureau's TRID Rule. Comments on the proposal are due by October 18, 2016.

Source:  CFPB

NCUA Warns of Text Phishing Scam

The National Credit Union Administration has received consumer calls about a suspicious text message claiming to come from the agency.

The message reads: “National Credit Union Administration Alert for (recipient's phone number). Contact 844-234-5445.”

This is not a communication from NCUA. The agency does not seek personal information through the internet or on the telephone.

Please contact NCUA's Consumer Assistance Center at 1-800-755-1030 between 8 a.m. and 5 p.m. Eastern if you receive one of these messages. NCUA also recommends contacting your credit union and local law enforcement.

You may also contact the Internet Crime Complaint Center, a partnership between the Federal Bureau of Investigation and the National White Collar Crime Center.

NCUA operates an online Fraud Prevention Center that offers information about avoiding frauds and scams on its​ website.

If you suspect you may have become a victim of identity theft as a result of this scam, you should immediately contact the three major credit bureaus and request a fraud alert be placed on your credit report: Equifax (866-640-2272), Experian (888-397-3742), and TransUnion (855-681-3196).

Source:  NCUA

FCC Hosts First “Robocall Strike Force” Meeting

On Friday August 19, the FCC hosted the first meeting of the "Robocall Strike Force," a telecommunications and technology-led industry group that is "committed to developing comprehensive solutions to prevent, detect, and filter unwanted robocalls."

FCC Commissioner Tom Wheeler sent letters to the CEOs of major wireless and wireline phone companies in July, calling on them to offer free robocall-blocking services to their customers. He also sent letters to intermediary carriers that connect robocallers to phone companies "reminding them of their responsibility to help facilitate the offering of blocking technologies." The companies were asked to respond in 30 days with concrete call-blocking solutions and technologies to prevent caller ID "spoofing."

More than 30 major technology and communication companies responded to Wheeler's "call to action," including AT&T, Google, Apple, Microsoft, Verizon and Comcast, to name a few. The first portion of this meeting was open to the public and is available here

The strike force will report to the FCC by Oct. 19 on "concrete plans to accelerate the development and adoption of new tools and solutions," said the group's chairman, AT&T Chief Executive Officer Randall Stephenson. Stay tuned for more developments.

Fannie Mae and Freddie Mac Publish Redesigned Uniform Residential Loan Application Form and Dataset

Fannie Mae and Freddie Mac announced Tuesday the publication of the redesigned Uniform Residential Loan Application (URLA), the standardized form used by borrowers to apply for a mortgage loan. This is the first substantial revision made to the form in more than 20 years and the changes will allow lenders to deliver an easier, more consumer-friendly loan application experience. The redesigned URLA form includes a reorganized layout, simplified terminology, and new data fields that capture necessary information in an easy-to-read format.

Additionally, the GSEs worked together to create a common corresponding dataset, called the Uniform Loan Application Dataset (ULAD) to ensure consistency of data delivery. The documents are being published now, in an effort to provide the industry with ample time to become familiarized with the URLA and ULAD updates and plan necessary changes to their systems.

Lenders may begin using the redesigned URLA on January 1, 2018. A timeline for required use of the redesigned URLA and ULAD will be established at a later date. The forms are preliminary, and could still be updated after a CFPB review.

Source: Fannie Mae

Q&A: Share Insurance & Inherited IRAs  

Q:  Will an IRA account continue to receive NCUA share insurance coverage after the owner's death if a designated beneficiary who inherits the IRA is a non-member?

A: Yes. According to NCUA's rules, share insurance coverage will continue for a designated beneficiary regardless of membership status.  In a 2007 comment letter, NCUA noted that share insurance for traditional and Roth IRAs "is based on the present vested ascertainable interest of a participant or designated beneficiary."  The agency clarified that while the participant or original owner of the IRA would have to have been a member to open the account in the first place, the regulations provide coverage to a designated beneficiary without specifically requiring the designated beneficiary to be a member.  (12 CFR 745.9-2(c)(2).

Source:  CUNA Compliance Community

CUNA Needs Your Feedback Regarding the CFPB Small Dollar Loan Proposal:

CUNA is currently seeking widespread feedback from credit unions about how the CFPB's small dollar proposed rule would impact credit union operations, and the ability to offer products and services. CUNA will continue to educate the Bureau about problems this rule could cause for credit unions and their members. Please check out the comment call and send comments, questions or concerns to Leah Dempsey.

Source:  CUNA Advocacy

CUNA Advocacy Update

The Regulatory Advocacy Report is now combined with CUNA’s Legislative Update into a comprehensive CUNA Advocacy Update.  The new Advocacy Update is published at the beginning of every week, is accessible here and keeps you on top of the most important changes in Washington for credit unions--and what CUNA is doing to monitor, analyze, and influence government agencies and federal law.

Prior CUNA Regulatory Advocacy Reports have been archived and are available here.

ComplySight: 30 Day Free Trial!

Would you like to get email notifications when regulations change? Small to large credit unions across over 30 different states do - and that's just one of the benefits. See for yourself with a free, 30-day trial of ComplySight.

ComplySight provides visibility, tracking, measuring and reporting for compliance activities through a single application. It is an affordable solution that:

  • Notifies users when regulations are finalized.
  • Assists in tracking Examiner and Audit findings.
  • Provides a summary of applicable regulations to test against existing policies, practices and procedures.

Compliance doesn't have to be overwhelming and this is a great opportunity to make things easier on yourself. 

League InfoSight is offering a free, 30-day trial of ComplySight so you can see the benefits first hand. It's easy to get started. Just visit us online.

FREE Webinars on ComplySight, the League's latest compliance resource

Registration is now open for your front row seat to learn about ComplySight, League InfoSight’s newest addition to your compliance toolbox. If you're looking for a solution to the compliance tidal wave, this system is for you!


For “recorded” webinars, click on the title of the webinar to listen.  Users may be asked to download WebEx, which is a safe download for viewing the webinars.  These are also available on the Dashboard in ComplySight and are available 24/7! 

Introduction to ComplySight
Designed to introduce and show the many features and benefits of ComplySight.

ComplySight Training & TipsWhere to Start?
This webinar will: suggest a starting point as a new ComplySight user, discuss how Factor Grading works, review the Action Item Build/Edit process, and discuss the need for a compliance management tool that regulators - and you - will appreciate.

ComplySight Training & Tips Regulatory Alerts, Assigning Employees, Preview of L2.5, Tools in the Help Area
What should be done when you get an email about a Regulatory Alert?  Where are “old” Regulatory Alerts? How do I assign an employee to an Area, and what will be different with the upcoming Level 2.5?  And – what tools are available in the Help area?  This webinar will explore all of this – and more!

ComplySight Training & TipsHow to Export Data
When you need to archive or copy data out of ComplySight for a fresh start or to provide information for a Board meeting, this webinar will explain the process.

ComplySight Training & TipsReports in ComplySight
What information is contained on the reports in ComplySight and how are they used?

Compliance eNEWSLETTER

August 26, 2016
Vol. 10, Issue 34

Created in partnership with the

Credit Union National Association

Military Lending and 3rd Quarter 2016 Review

This video provides an overview of the key changes made to the Military Lending Act that credit unions are going to need to consider and implement prior to the compliance effective date of October 3, 2016.  View the video here.

Be sure to view this new video, where Glory LeDu, Manager of League System Relations provides an overview of the compliance challenges your credit union is facing now in the 3rd quarter of 2016. 

Same Day ACH Preview

In this newly released video Amy Smith, VP and Executive Director of The Clearing House Payments Authority, provides background information on the current batch-and-forward ACH payment system and introduces the “Phased Approach” of the Same Day ACH program, which will begin in September of 2016.  You will want to pay special attention to Amy’s suggestion to review current ACH files you may be transmitting.  View the video here.

September, 2016 October, 2016 November, 2016
  • November 6th, 2016: Daylight Savings Time Ends
  • November 11th, 2016: Veterans' Day - Federal Holiday
  • November 24th, 2016: Thanksgiving Day - Federal Holiday
December, 2016
  • December 1st, 2016: Overtime Rule (Department of Labor) – Effective date
  • December 25th, 2016: Christmas Day - Federal Holiday
January, 2017

CFPB’S Payday, Small Dollar and Vehicle Title Proposed Rule Webinar (Recorded)

This recorded event will be available from July 7, 2016 until July 7, 2017.

FREE WEBINAR - This is a complimentary webinar offered to affiliated credit unions, however registration is required to attend.

The Consumer Financial Protection Bureau's (CFPB) Payday, Small Dollar and Vehicle Title Proposed Rule has the potential to affect credit union lending of all types, including small dollar, installment and auto refinances, and could have a significant impact on operations as well. Join us to learn about potential upcoming changes to better prepare and position your credit union for the future.

During this webinar, you will:

  • Learn about this significant proposal from the CFPB and how it will affect your credit union
  • Obtain insights into the various provisions of the proposed rule
  • Encourage participation in the rulemaking process to minimize the impact on credit unions
  • Obtain strategies for preparing for the upcoming rule

Attendees will also receive a session handout and a list of resources to help prepare for the rule. 

Articles of interest:

Who Should Attend

This webinar is beneficial for credit union CEOs, CFOs, CLOs, compliance officers and lending professionals needing to learn about the new CFPB proposed rule.

Source:  CFPB/CUNA

NCUA Webinars - Regulatory Compliance Training

Hot Topics in Compliance (click to register)

  • An overview of the Bank Secrecy Act, with discussion of requirements and common violations; 
  • Monitoring of money laundering; 
  • Suspicious Activity Reports; 
  • Equal Credit Opportunity Act adverse action notice requirements; and 
  • Office of Consumer Protection contact information. 

Cybersecurity – Intrusion threats and vulnerabilities


CUNA offers hundreds of online training events that make it easy for you to learn right at your desk. Whether you are looking for a beginner course or want a comprehensive understanding on a specific topic, CUNA webinars, audio conferences and eSchools have what you need. 

Click here for updates on compliance, operations, lending topics and more!