Washington DFI Bulletin on Obtaining Audit Reports from Third-Party Providers
The Washington State Department of Financial Institutions (DFI) has released DCU Bulletin B-17-06 regarding obtaining audit reports from third-party providers.
The Bulletin covers the National Credit Union Administration’s (NCUA) announced change in its supervisory policy that requires its examiners to obtain a copy of a newly completed audit directly from the outside audit firm for all federally insured credit unions.
NCUA examiners conduct off-site reviews for all federally insured credit unions once a quarter. These reviews primarily consist in studying the most recent Financial Performance Report and 5300 Call Report. In addition, and as part of the off-site monitoring process, NCUA now requires its examiners to review each credit union’s Online Profile to determine if the credit union has reported a newly completed annual audit completed by a third-party. If so, the NCUA examiner is required to contact the auditor, supervisory committee, and/or audit committee to obtain a copy of the audit report directly from the auditor. Once received, the examiner will read the audit report, and if material problems are identified, will follow up as necessary.
To prevent credit unions (and third-party audit providers) from receiving multiple requests for audit reports by both the Division of Credit Unions (DCU) and the NCUA, DCU will coordinate the audit report requests as a single point of contact.
Compliance Question of the Week
Can I advertise my certificate account as a CD or Certificate of Deposit?
This depends on whether the credit union is state chartered or federally chartered. Oregon, Washington, and Idaho state chartered credit unions are permitted to pay interest and/or dividends on accounts, while federally chartered credit unions are only permitted to pay dividends. CD’s, or Certificates of Deposit, are interest bearing accounts. Therefore, if a credit union is state chartered AND offers interest account, it can offer a CD, or Certificate of Deposit. However, if a credit union is federally chartered, it cannot offer a Certificate of Deposit or CD because federally chartered credit unions cannot pay interest.
It is important to note that Truth in Savings states that an advertisement must never be misleading, inaccurate or misrepresent a credit union’s account agreement.
National Credit Union Administration (NCUA)
The NCUA announced the release of its 2016 Annual Report, which highlights the NCUA’s activities, policy initiatives, and accomplishments for 2016.
The NCUA released information for Q4 2016, which shows positive loan and asset growth, along with 81% of credit unions reporting positive net income.
The video from the February 2017 NCUA Board meeting is now available.
Consumer Financial Protection Bureau (CFPB)
The CFPB announced plans to review its Remittance Transfer Rule.
Federal Reserve Board (FRB)
Federal Deposit Insurance Corporation (FDIC)
The FDIC released the agenda for its March 21, 2017 board meeting.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of March 17, 2017. The last update prior to this was March 14, 2017.
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.