Compliance Briefs: Updating the REAL ID Act

Your Association’s Compliance Team offers a three-state summary of what Northwest credit unions need to know.

6/5/18

Picture of REAL ID logo with US mapIf you have been in an airport recently, you have probably seen the signs indicating that drivers’ licenses from certain states will soon no longer be permitted as acceptable identification for boarding airplanes unless the state is deemed to be in compliance with the REAL ID Act.  Idaho, Oregon, and Washington have varying degrees of compliance and it is important for credit union team members that review IDs for various purposes to know about the upcoming changes.

A few things to know about the REAL ID requirements in general include the fact that they are not required if an individual doesn’t wish to access a site (commercial airline, federal facility) that requires a REAL ID. This means that you will continue to see drivers’ licenses as they are currently issued. Additionally, the REAL ID cards have specific identification documentation requirements that must be satisfied before the cards can be issued. These documentation requirements include documents that verify the individual’s identity and legal presence (U.S. birth certificate or valid U.S. passport), social security card, and address (utility bill and vehicle registration, for example).

In Idaho, the change is very simple and should not impact the IDs that branch staff are familiar with. The REAL ID compliant IDs simply have a star on the top, right hand side of the card that indicates that the card is compliance with the REAL ID Act. Idaho has a lot of information about their program available through the Idaho Transportation Department.

In Oregon, credit unions can expect to see the REAL ID compliant cards beginning in mid-2020. At this point, Oregon hasn’t released information detailing what the cards will look like. We will publish information about their card updates as it becomes available. Credit unions can stay apprised of changes by visiting Oregon’s Department of Transportation REAL ID FAQs.

While Washington State does expect to be in compliance with the REAL ID Act by fall of 2018, standard driver’s licenses issued on July 1, 2018 or later are expected to include the language “federal limits apply.” Credit unions can stay up to date on the process in Washington by visiting the Department of Licensing website.

Question of the Week

We have looked at the Record Retention Guidelines but cannot find a particular record that we keep here at the credit union. What should we do?

Credit unions often look to NCUA for guidance on the appropriate length of time to retain various types of operational records. The NCUA has published record retention guidelines addressing which records must be maintained, and for how long. However, the NCUA does not have an exhaustive list of all records that a credit union may produce.

There are several resources that provide record retention timelines including the Record Retention Guideline treatise in InfoSight and the guides in CU PolicyPro that supplement the sample record retention policy. However, these guides do not purport to list everything a credit union uses, keeps, or generates in its daily business. Try to find the item/record that most closely resembles your record and use that retention timeframe. If in doubt, err on the conservative side or contact your legal counsel.

Related Links:

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA board announced that it approved changes to the member business lending rule, removing the occupancy requirement for 1-to-4 unit dwellings to be counted as member business loans. These loans will no longer count toward the aggregate member business loan cap for federally insured credit unions. The rule will become effective upon publication in the Federal Register.

The NCUA announced that it is holding a webinar on Wednesday, June 13 at 2 p.m. EST. The webinar, NCUA Grants Assist with Strategic Initiatives, will share information about the grants program and include success stories from prior grant awardees. Interested credit unions can register for the webinar here.

The NCUA announced the release of its second quarter edition of The NCUA Report.

Consumer Financial Protection Bureau (CFPB)

CFPB Acting Director Mick Mulvaney delivered a statement on the Economic Growth, Regulatory Relief and Consumer Protection Act that was signed into law on May 24, 2018.

The CFPB announced the availability of its latest complaint snapshot, which focuses on debt collection.

Federal Reserve Board (FRB)

The Federal Open Market Committee has released its tentative meeting schedule for 2019.

Th FRB has released the minutes from its April and May discount rate meetings.

The FRB has released the May 2018 issue of its Beige Book.

The FRB announced that it is seeking comment on its proposed rule to simplify compliance related to the Volcker Rule.

Internal Revenue Service (IRS)

The IRS issued a Notice of Proposed Rulemaking that seeks to amend rules for determining whether information returns must be filed electronically. The amendment would also require those filing corrected information returns file them electronically, if the original was filed electronically, regardless of the amount of correct information returns being filed.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of May 31, 2018. The last update prior to this was May 30, 2018.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.