Washington DFI Issues Final Rule

The Washington State Department of Financial Institutions today issued a final rule outlining the process for requesting powers and authorities authorized in other states. The rule goes into effect 31 days from November 13, 2019.

The DFI sought input and held a public meeting prior to finalizing the rule. Based on feedback, the DFI made changes to the initial proposal. Key changes included eliminating a provision that would have required a credit union to submit a full set of policies and procedures as part of the request to implement another state’s power or authority. Instead credit unions are asked to describe the implementing policies and procedures when they make a request to utilize another state law.

“We update our state credit union acts every two years,” said John Trull, Vice President,  Regulatory Advocacy, Northwest Credit Union Association. “Our expectation is that this new rule will provide an incentive to credit unions to review state acts and adopt the best provisions. Once the efficacy has been demonstrated to the satisfaction of legislators, the next step would be to adopt the best of other state laws into the Washington Credit Union Act which is already one of the most progressive in the nation.”

The rule-making stemmed from the legislation that the Washington Legislature adopted in 2018, legislation that was developed with the Washington State Issues Work Group and negotiated with the DFI and legislators.

Posted in Advocacy on the Move.