CFPB, FDIC release resource for older, Spanish-speaking adults
WASHINGTON (10/8/14)--A financial resource designed to help older, Spanish-speaking adults has been released jointly by the Federal Deposit Insurance Corp. (FDIC) and Consumer Financial Protection Bureau (CFPB).
The English-language version of the "Money Smart for Older Adults" resource was released last year as a tool to help those over age 62 and their caregivers prevent elder financial exploitation.
"We know that senior citizens are increasingly targeted for financial exploitation," said FDIC Chair Martin Gruenberg. "With nearly 4 million Spanish-speaking older adults across the country, this tool adds a new resource to help Spanish-speaking seniors prevent, respond to and report abuse."
The educational module is designed to be delivered to older adults and their caregivers by representatives of financial institutions, adult protective service agencies, senior advocacy organizations, law enforcement and others that serve this population.
The resource also includes a participant/resource guide and PowerPoint slides in Spanish that can be downloaded for free.
Source: CUNA News Now
IRS Releases Revised 'Certificate of Foreign Status' Form for Individuals
The IRS has a issued a new form that individuals who are not U.S. citizens or resident aliens can use to claim an exception from information reporting and backup withholding for certain types of income, including financial-institution deposit interest.
The IRS has issued a new Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting), which should be used exclusively for individuals. Entities documenting their foreign status, FATCA status, or making a claim for treaty benefits will use a new Form W-8BEN-E, which has not yet been finalized.
Individuals who are not U.S. citizens or resident aliens may be subject to U.S. tax at a 30-percent rate on income they receive from certain U.S. sources. These individuals can use Form W-8BEN to claim an exception from information reporting and backup withholding for certain types of income, such as financial-institution deposit interest.
The new form is very similar to the old Form W-8BEN. References to anything other than individuals have been deleted, and the new form requires the individual’s date of birth (Box 8).
For more information, see the updated W-8BEN Instructions.
ALEXANDRIA, Va. (10/8/14)-- The National Credit Union Administration has posted a supervisory letter and white paper to its website that offer examiner guidance for evaluating the capital planning efforts of credit unions with $10 billion or more in assets, i.e., the few very largest credit unions.
The letter reminds that a credit union's capital policy should "outline its process for capital planning and analysis, and must be consistent with the financial condition, size, complexity, risk profile, scope of operations, and level of capital of the credit union." It also notes that a credit union's board of directors is "ultimately responsible for overseeing the capital planning and analysis process, while senior management administers a comprehensive, integrated, and effective process that fits into the broader risk management of the credit union ... Senior management responsible for capital planning and analysis must provide regular reports on capital planning and analysis must provide regular reports on capital planning and analysis to the credit union's board of directors (or a designated committee of the board."
The guidance notes that the NCUA Office of National Examination and Supervision will evaluate each covered credit union's capital plan within the context of the organization's unique needs and circumstances and will apply the following three standards in performing the evaluation: The capital planning process is based on a sound foundation; the capital plan meets all the requirements of the regulation, and; the capital plan involves safe and sound practices ...
Source: CUNA News Now
Deadline for 3Q call reports is Oct. 24
ALEXANDRIA, Va. (10/8/14)--Oct. 24 is the deadline for credit unions to submit their third quarter 5300 Call Reports to the National Credit Union Administration. After Oct. 24, credit unions could be assessed a civil money penalty for non-compliance.
The NCUA began fining credit unions that file late call reports this year.
The 2013 third quarter saw more than 1,000 credit unions miss the filing deadline and, according to NCUA Chair Debbie Matz, a large percentage of those filers were "chronically late, repeatedly filing after each quarterly deadline throughout the year."
"Such late filing impacts NCUA's ability to conduct effective off-site supervision and delays the release of quarterly industry data to the general public," Matz wrote in a Letter to Credit Unions.
Going forward, credit unions filing reports late can be subject to civil money penalties. Each quarter, after the agency determines which credit unions missed the deadline, it assesses each case if there were extenuating circumstances, such as a natural disaster, or incapacitation of key employees. Without extenuating circumstances, a late filer is likely to be fined.
The problem of tardy filing has improved significantly since last year, but the NCUA has said it wants full compliance.
In the first quarter of 2014, 104 credit unions missed the deadline, and 62 were eventually fined a total of $57,750. The agency reported 75 credit unions filed late reports in the second quarter and has not released the final number of credit unions that will ultimately end up paying civil penalties.
Use the link below to access an NCUA video explaining the online submission process for 5300 Call Reports.
Tips for using online call report submission
Source: CUNA News Now
Inside Washington (10/06/2014)
WASHINGTON (10/6/14)-- Technical amendments approved by the National Credit Union Administration board at its September meeting have been published in the Federal Register , making the changes effective as of Oct. 3 . The Dodd-Frank Act repealed NCUA's rulemaking authority under the Federal Trade Commission Act, and as a result, the NCUA board has repealed the agency's regulations governing unfair or deceptive acts or practices. Other technical amendments conform regulations to the agency's current central and field office structures, as well as amend the payday alternative loans regulation to replace all references to "short-term, small amount loans" and "STS loans" with corresponding references to "payday alternative loans" and "PAL loans" ...
Source: CUNA News Now
What CUs Need to Know About U.S. Sanctions on Russia
In July, the U.S. Treasury Department imposed a broad-based package of economic sanctions on entities in the financial services, energy, and arms or related sectors of Russia, and on those undermining Ukraine’s sovereignty or misappropriating Ukrainian property.
Treasury’s Office of Foreign Assets Control (OFAC) introduced the Sectoral Sanctions Identifications (SSI) List to identify these sanction targets. The SSI List is not part of OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List), although some SSI targets may also appear on the SDN List.
Generally, U.S. persons are prohibited from providing debt financing longer than 90 days or new equity to any person/entity on the SSI List. But targets’ assets under U.S. jurisdiction aren’t “blocked” (i.e., frozen) under this particular sanction program. OFAC posted detailed information on how to handle SSIs on its website.
Earlier this year, OFAC issued another non-SDN List —the Foreign Sanctions Evaders (FSE) List— targeting individuals and entities involved in violating U.S. sanctions on Syria or Iran. Transactions by U.S. persons or within the United States involving FSEs are prohibited (CU Mag 4/14, p. 39). Make sure your OFAC software vendors are tracking the SSI and FSE Lists in addition to the SDN List.
Source: Credit Union Magazine