SARs and Elder Abuse

FinCEN issued Advisory FIN-2011-A003 (02/22/2011) to assist the financial industry in reporting instances of financial exploitation of the elderly, a form of elder abuse. Financial institutions can play a key role in addressing elder financial exploitation due to the nature of the client relationship. The guidance shares a number of "red flags" that might signal elder abuse. Here are some examples:

  • Debit transactions that are inconsistent for the elder;
  • Uncharacteristic attempts to wire large sums of money;
  • Closing of CDs or accounts without regard to penalties;
  • The financial institution is unable to speak directly with the elder, despite repeated attempts to contact him or her;
  • The elderly individual's financial management changes suddenly, such as through a change of power of attorney to a different family member or a new individual.

In addition, FinCEN gives guidance on the completion of SARs involving elder abuse. Click here for the full advisory.

For additional information to help your credit union stay in compliance, visit the Suspicious Activity Reports topic on InfoSight.

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

 

Compliance: CFPB updates TILA-RESPA materials with latest revisions

WASHINGTON (3/25/15)--In preparation for the Aug. 1 implementation date for the Consumer Financial Protection Bureau's (CFPB) Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosures rule, the bureau has updated a number of its materials relating to the rule.

The bureau's small entity compliance guide, loan originator small entity compliance guide, guide to forms and example disclosure timeline have all been updated to include two changes that were finalized in January.

These changes extend the timeline by which creditors are required to provide a revised Loan Estimate form to three days, as opposed to the same business day as was originally the rule. The second change creates a space on the Loan Estimate form where language regarding a construction loan can be placed.

CUNA's compliance staff will be updating CompBlog leading up to Aug. 1 with question-and-answer posts about specifics of TILA-RESPA compliance.

Source: CUNA News Now


NCUA Videos on CDFI Fund Certification

A new five-part video series, "CDFI Fund Certification," is now available online on NCUA's YouTube channel. The series shows how Community Development Financial Institution certification opens financial doors to credit unions to help them in serving the underserved.

Source: NCUA


NCUA cites improvements in Corporate Resolution, Guaranteed Notes programs

ALEXANDRIA, Va. (3/18/15)--The upper and lower ends of the projected Temporary Corporate Credit Union Stabilization Fund assessment range remain negative, from a negative $2.5 billion to a negative $700 million, the National Credit Union Administration announced Tuesday.

According to the agency, as long as both ends of the range remain negative, it is unlikely credit unions will be charged future stabilization fund assessments.

The announcement came as part of a release of updated information about the costs of the NCUA's Corporate Resolution Program and the performance of the agency's Guaranteed Notes Program. Credit unions have paid $4.8 billion in assessments since the creation of the stabilization fund in 2009. The fund is scheduled to expire in 2021.

"The good news is that the assessment range became even more negative over the latest six-month reporting period" said Bill Hampel, CUNA's Chief Policy Officer. "From the second to the fourth quarter of 2014, the mid-point of the assessment range 'fell' from negative $1.2 billion to negative $1.6 billion, an improvement of $400 million. Since a negative assessment is a likely future rebate, this is positive news: it means the expected size of future rebates has increased. However, it will likely be several years before any rebate is paid to credit unions."

According to the NCUA, it is still obligated to repay $2.6 billion in outstanding borrowings from the U.S. Treasury. Principal and interest on the NCUA Guaranteed Notes, as well as other obligations of the stabilization fund, also must be fully repaid before NCUA can distribute any remaining funds to credit unions.

"These debts will be paid with proceeds from the legacy assets from the closed corporates" said Hampel. "Funds left over after paying these obligations will be the source of rebates."

The NCUA has pending litigation against several Wall Street firms, seeking recoveries on faulty securities purchased by the failed corporate credit unions as well as separate litigation alleging violations of federal and state anti-trust laws by manipulation of interest rates in the London Interbank Offered Rate (LIBOR) system.

The agency is also pursuing or participating in repurchase actions and litigation against trustees. Net recoveries from this litigation will help reduce the assessments credit unions will need to pay over time.

Source: CUNA News Now


FATF Updates List of Jurisdictions with AML/CFT Deficiencies

WASHINGTON (3/18/15)--The Financial Action Task Force (FATF) has updated its list of jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies. The FATF has urged U.S. financial institutions to impose countermeasures on Iran and North Korea and has called for enhanced due diligence for the jurisdictions of Algeria, Ecuador and Myanmar. In addition, Afghanistan, Angola, Guyana, Indonesia, Iraq, Laos, Panama, Papua New Guinea, Sudan, Syria, Uganda and Yemen have been identified as having AML/CFT deficiencies. The lists, updated Feb. 27, were just made public ...

Source: CUNA News Now


March NCUA Report includes info on laundering scam

ALEXANDRIA, Va. (3/19/15)-- The NCUA Report March issue is available and its lead story examines a growing form of money-laundering activity--the use of funnel accounts.

The accounts, the article notes, usually fly under the Bank Secrecy Act radar by keeping transactions below the $10,000 trigger for suspicious activity reporting. However, a credit union or other financial institution could be tipped off to possible criminal activity by observing this kind of red flag activity: Funds from cash deposits made to an individual consumer or business account in one geographic location are withdrawn at a different location with little time elapsing between the two transactions.

Criminal organizations use larger institutions as well as small- and medium-sized ones for different forms of the funnel account schemes. The article said that credit unions that participate in shared branching are also vulnerable to the schemes.

To read more about warning signs of funnel accounts and associated reporting requirement, see this month's issue of The NCUA Report.

Source: CUNA News Now

 

CUNA Requests Comments on NCUA’s Fixed Assets Proposal

CUNA has posted a Comment Call for NCUA’s latest fixed asset proposal, which would make two important improvements to the 2014 fixed assets proposal. The new proposed rule would only apply to federal credit unions and would: Eliminate the 5% aggregate limit on investments in fixed assets that is currently in place for federal credit unions with $1,000,000 or more in assets. (CUNA urged the Board to remove the 5% limit in the comment letter on the 2014 proposal.) Instead of applying the current aggregate limit, the Board proposes to oversee ownership of fixed assets through the supervisory process and guidance. Remove the waiver provisions regarding the aggregate limit. Establish a single six¬ year time period for partial occupancy of premises and discontinue the 30¬month requirement for partial occupancy waiver requests. NCUA has indicated that if the proposal is adopted, it will issue new supervisory guidance on fixed assets to examiners, which will be available to federal credit unions. During the Board meeting, Board Member Mark McWatters cautioned that the guidance should not, in effect, impose additional limitations. CUNA applauds the new proposed changes but agrees that implementation of the rule will be critical. The proposal will have a 30¬day comment period once published in the Federal Register.

Positive Report on Condition of Corporate Stabilization Fund

During last week’s NCUA Board meeting, agency staff reported on the condition of the Temporary Corporate Credit Union Stabilization Fund. For 2014, year ¬to ¬date, the Fund’s total income was $60.3 million, which is down from $761.6 million for 2013 due primarily to a lack of special assessments in 2014. However, outstanding borrowings from Treasury decreased to $2.6 billion as of December 31, 2014, from $2.9 billion outstanding at the end of 2013. Commenting on the positive trend of the Fund, Chairman Matz asked staff about the possibility of a refund to credit unions. Consistent with previous comments, staff indicated that any such refund would not come until 2021 when the Fund will sunset.

Source: CUNA


April 27 is RBC2 comment deadline

The comment deadline is April 27 for the revised risk-based capital plan proposed Jan. 15 by the National Credit Union Administration.

As expected, the proposal was printed in today's issue of the Federal Register, thereby kicking off the 90-day comment period set by the agency.

The Credit Union National Association has noted "significant improvements" in the agency's revised plan and is seeking credit union comment on how the new proposal will affect their operations, and what further improvements are necessary. CUNA soon will issue a Comment Call for credit union views.

See related story for more details: RBC2 changes, improvements, outlook detailed in CUNA webinar.

For more information, check's CUNA's Risk-Based Capital Action Center, Risk-Based Capital blog and future issues of News Now.

Source: CUNA


Regulatory Advocacy Report

The CUNA Regulatory Advocacy Report 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. You can view the current report and past reports from the archive.

InfoSight
Compliance eNEWSLETTER

March 27, 2015
Vol. 9, Issue 12

Created in partnership with the

Credit Union National Association

CU Compliance Connection – CFPB Integrated Mortgage Disclosure

The CFPB Integrated Mortgage Disclosure requirements are effective August 1, 2015. To be prepared for the changes, review the disclosures requirements by watching this CU Compliance Connection presentation.

Click here for the video

April, 2015 May, 2015
  • May 25th, 2015: Memorial Day - Federal Holiday
July, 2015 August, 2015 September, 2015

CUNA AND CUNA Webinars

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!

New Accounts for the Frontline – Compliance Issues to Watch For webinar 4/1/2015

CUNA Regulatory Compliance School (Spring Las Vegas) 4/12/2015

Cyber Crime - No Gun Needed, Detecting and Preventing a Corporate Account Takeover webinar (5/13/2015

CUNA Consumer Lending eSchool (2015) 6/1/2015

The Basics of Consumer Lending – Part 1 webinar 6/1/2015

Home Equity Lending webinar (2015) 6/4/2015

The Basics of Consumer Lending – Part 2 webinar 6/8/2015

Consumer Lending Compliance 101 webinar 6/11/2015

Top 100 Trends in New and Used Car Lending - Plus Unsecured Lending webinar 6/15/2015

Advanced Exceptions with International ACH Transactions (IAT) - OFAC Compliance webinar 6/17/2015

Financial Counseling - What to Look for and What to Know as a Lender webinar 6/18/2015

Use of Loan Guaranties Instead of Co-Signers webinar 6/25/2015

CUNA Residential Mortgage Lending eSchool 7/7/2015

Minimizing the Risk of Mortgage Fraud webinar 7/7/2015

Growing Your Purchase Loan Volume - Building Market Share webinar 7/9/2015

Seizing Market Share in a Purchase Market webinar 7/14/2015

Putting Common Sense in Underwriting - Will the Loan Be Repaid or Not webinar 7/16/2015

What is New in Mortgage Lending Compliance webinar 7/21/2015

CUNA Marketing Compliance eSchool 7/22/2015

Appraisal Madness - How to Know if the Value is Supported webinar 7/23/2015

Custom Construction Lending - An Introduction webinar 7/28/2015