NCUA Releases Examination Guidance for Customer Due Diligence on FinCEN’s Beneficial Ownership Rule

The recently released letter highlights the examination expectations of NCUA examiners as well as considerations for credit unions to protect themselves against FinCEN penalties.

9/4/18

The National Credit Union Administration (NCUA) recently issued its Letter to Credit Unions 18-CU-02. The letter provides Examination Guidance for Bank Secrecy Act Customer Due Diligence and Beneficial Ownership Compliance. The letter also includes four enclosures:

  • Supervisory Letter – Bank Secrecy Act Customer Due Diligence and Beneficial Ownership Rules
  • BSA – Questionnaire
  • Customer Due Diligence and Exam Procedures – Overview
  • Beneficial Ownership Requirement for Legal Entity Customer – Overview

The NCUA issued examination procedures for their field staff, and the supervisory letter provides credit unions with the examination expectations of the NCUA examiners. While the NCUA has instructed its examiners to accept a credit union’s reasonable and good faith efforts to comply with the new rule through 2018, it also notes that the credit unions should understand that the NCUA’s acceptance of good faith efforts for supervision purposes does not shield a credit union from FinCEN penalties that could arise from failing to comply with all BSA/AML requirements.

Credit unions can find more information on the Customer Due Diligence and Beneficial Ownership requirements on the Northwest Credit Union Association’s InfoSight webpage. The topic includes an overview and background of the requirements, CDD FAQs, Checklists, and links to additional resources.

Question of the Week

Is a will naming someone as the executor of the estate enough documentation to allow access to a deceased member’s account?

Letters Testamentary is a court-issued document that proves that the person named is the executor of the estate in question. It is the probate court’s job to look at the will, determine if it is valid and current, and issue the letters to the appropriate person. It is only after your credit union has received the Letters Testamentary that it should provide access to the deceased member’s accounts. Letters Testamentary are sometimes called Letters of Administration.No. In order to access the deceased member’s account, the person claiming to be the executor of the estate needs to provide your credit union with a copy of the member’s death certificate and Letters Testamentary.

Related Links:

RCW 11.20.020

RCW 11.11.100

ORS 113.035

ORS 113.125

IDS 15-3-103

IDS 15-3-102

 

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA issued Letter to Credit Unions number 18-CU-02, which provides examination guidance for Bank Secrecy Act Customer Due Diligence and Beneficial Ownership Compliance.

Bureau of Consumer Financial Protection (BCFP)

The BCFP issued an interpretive procedural rule to implement and clarify the recent amendments made to HMDA by S2155.

Federal Reserve Board (FRB)

The FRB released the minutes from the July 9th, 23rd, and Aug. 1st, 2018,  discount rate meetings.

Financial Crimes Enforcement Network (FinCEN)

FinCEN announced a new insignia designed to better reflect FinCEN’s mission.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of August 24, 2018. The last update prior to this was August 21, 2018.

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