Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB celebrated its first birthday on July 21.  Hard to imagine, but the CFPB opened its doors for business on July 21, 2011, just one year after the Dodd-Frank Act established the Bureau.

National Credit Union Administration (NCUA)

The NCUA has published Letter to Federal Credit Unions 12-FCU-02, providing guidance on Multi-featured open end lending.  Under the letter, verifying credit on individual advances is not permissible.  Closed end advances in an overall open end plan are, however, compliant.

The NCUA’s letter to Federal Credit Unions 12-FCU-03 highlights the new Small Credit Union Examination Program.  Under that program, well-run credit unions under $10 million in assets will receive a streamlined exam.

The Federal Credit Union 18 percent loan rate cap has been extended by the NCUA for 18 more months.  If the cap had not been extended, the maximum rate federally chartered credit unions could charge on their loans would be 15 percent.

The NCUA issued a proposed new rule requiring credit unions to plan for emergency liquidity needs.  Under the proposed rule all credit unions would need to have a written policy and the largest credit unions would need to demonstrate access to at least one federal liquidity source option. Comments are due within 60 days.

Under current rules, only the state regulatory agency can make the determination that a state chartered credit union is in a troubled condition.  The NCUA proposed rules to allow the NCUA to declare a state chartered credit union to be in a troubled condition based on the CAMEL rating NCUA assigns.  Comments are due within 60 days.

The NCUA released the July economic update.  The video reviews the latest in economic trends and how they are affecting the credit union industry.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: July 18, 2012.

The Electronic Payments Association (NACHA)

NACHA has developed Sound Business Practices for Implementing the FFIEC Internet Banking Authentication Supplement.  The business practices provide credit unions with a clear framework to implement the FFIEC guidance by offering side-by-side representations of key points of the Supplement, parties that are affected, and applicable NACHA rules and practices.

Financial Crimes Enforcement Network (FinCEN)

FinCEN released Advisory FIN-2012-A006.  The advisory is to remind financial institutions of previously published information regarding restrictions imposed on Mexican financial institutions for transactions in U.S. currency.

FinCEN Advisories FIN-2012-A007 and FIN-2012-A008 both address countries with higher risk of money laundering and terrorist financing.  Among others, the countries included are Nepal, Cuba, Afghanistan and Cambodia.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Advocacy News, Awards, Compliance News, CUNA, Federal, NCUA, NWCUA.