Compliance Center: Federal Regulators Issue Guidance on Youth Savings Programs

The National Credit Union Administration (NCUA), along with the other four federal financial regulators, recently issued guidance to help encourage financial institutions to develop and implement programs to expand the financial capability of youth and build opportunities for financial inclusion for more families. 

The guidance contains answers to some of the frequently asked questions regarding young members’ accounts, such as:

  • Banking activity questions
  • Customer Identification Program (CIP) Questions
  • Third-Party Deposit Relationships

Many credit unions already collaborate with schools to establish programs that allow students in elementary, middle and high school to open and manage savings accounts and to learn good savings habits early. Research indicates that school-based youth savings programs—when combined with financial education—can be effective in helping students to improve their long-term financial and education prospects.

The guidance does not create any new regulatory policy or establish new industry expectations. In addition to the NCUA, the guidance also was sent out by the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corp.

Compliance Question of the Week

If a check is made out to two people, can the credit union accept it for deposit with only one signature?

If a check is made out to two or more people and indicates that the funds are jointly owned (for instance, with an ‘and’ joining the parties), all parties are required to sign the check. If, on the other hand, the check indicates that the funds belong to any one of the people on the check (for instance, with an ‘or’ joining the parties), any one of the signatures is required.

When it is impossible to determine whether the funds are jointly or alternatively owned (for instance, with only a comma separating the parties), the assumption is that the check is payable to the people alternatively and therefore only one signature is required.  


Legal Briefs

National Credit Union Administration (NCUA)

The NCUA, along with the other financial regulators, issued guidance to encourage financial institutions to offer youth savings programs.

Consumer Financial Protection Bureau (CFPB)

The CFPB announced that it will hold a Credit Union Advisory Council meeting in Washington, DC on Thursday, March 12, 2015.

The CFPB posted tips on its blog about saving for certain financial goals and encouraged readers to take the America Saves pledge.

CFPB Director Cordray delivered prepared remarks at the Financial Literacy and Education Commission Meeting.

The CFPB issued a proposal that would suspend the required submission for consumer credit card agreements to the Bureau. The proposal is aimed at creating a more efficient system for consumer credit card agreements to be submitted and retrieved. 

Federal Deposit Insurance Corporation (FDIC)

The FDIC released its Quarterly Banking Profile that summarizes the financial results for all FDIC-insured institutions.

Federal Communications Commission (FCC)

The FCC released a Summary of FCC Commissioner Pai’s Oral Statement Dissenting from the FCC’s Decision to Adopt President Obama’s Plan to Regulate the Internet. 

Financial Action Task Force (FATF)

The FATF has released several documents detailing the different outcomes of the Plenary Meeting held in Paris last month. The documents include Action on Terrorist Finance, FATF Public Statement, Improving Global AML/CFT Compliance, Financing of the Terrorist Organisation Islamic State in Iraq and Levant, and Outcomes of the Plenary meeting.  

Financial Crimes Enforcement Network (FinCEN)

FinCEN launched a new webpage for FBAR filers.

Federal Reserve Bank (FRB)

The FRB published a set of FAQs relating to the Dodd Frank Act’s Volcker Rule.

The FRB has released information on its upcoming check debit transaction code changes as part of the Part II of the Payment System Risk Policy.

The FRB released the February 2015 Monetary Policy Report, which was submitted to the Senate Committee on Banking, Housing and Urban Affairs and the House Committee on Financial Services.

The FRB released the minutes of its January Discount Rate Meeting Minutes.

Department of Housing and Urban Development (HUD)

HUD issued guidance on lending to LGBT Americans aimed at ensuring housing across HUD programs are open to all eligible individuals.

Federal Trade Commission (FTC)

The FTC released its Consumer Sentinel Network Data Book for January through December 2014. The book compiles unverified complaints reported by consumers to various law enforcement partners and agencies.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of February 26, 2015. The last update prior to this was February 24, 2015.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal.