Washington and Oregon Allow “X” Designation on IDs for Gender Identification

Credit unions should consider upgrading systems to include more options when entering members’ gender information.

12/17/2019

Compliance imageOn Nov. 12, the Washington State Department of Licensing adopted rulemaking allowing for the designation of “X” on state issued driver’s licenses, instruction permits, and identification cards. The “X” means a gender that is not exclusively male or female.

Washington joins a growing list of states that legally recognize gender-neutral identifications. The other states that offer gender X IDs includes: Arkansas, Oregon, Minnesota, Maine, Utah, Colorado, California, Indiana, Nevada, Vermont, Maryland, New Hampshire, and Pennsylvania. In addition, Washington, D.C., and New York City also offer the option.

Building on this trend, businesses such as United Airlines are offering non-binary gender options through their booking channels.

In order to ensure their record-keeping systems keep up with member wishes, credit unions may wish to have conversations with their core provider about upgrading systems to include more options when capturing the gender information off a member’s identification.

After a conversation with FinCEN regarding the proper selection when it comes to gender on Currency Transaction Reports and Suspicious Activity Reports, FinCEN advises using the option “c – unknown” when completing those reports. FinCEN may look at updating their reports in the future, at which time the new designation would be appropriate. But currently there are only three options to choose from.  Male, Female, and Unknown.

Question of the Week

Q. What is the time period for the de minimis exception found in the SAFE Act?

A. The SAFE Act provides a de minimis exception to the registration requirements for mortgage loan originators when the originator has never been registered, and when he or she has acted as a mortgage loan originator for five or fewer residential loans during the past 12 months (a rolling 12 months, not a calendar year). 12 CFR 1007.101(c)(2)

Legal Briefs

National Credit Union Administration (NCUA)

Delay of Effective Date of the Risk-Based Capital Rules

The NCUA has delayed the effective date of the Risk-Based Capital Rules until January 1, 2022.

Consumer Financial Protection Bureau (CFPB)

Supervisory Highlights Consumer Reporting Special Edition

The CFPB released a special issue of Supervisory Highlights that focuses on examination findings in the areas of consumer reporting and furnishing information to consumer reporting agencies. Some of the issues observed at furnishers include: Reasonable, written policies and procedures; prohibition of reporting information with actual knowledge of errors; duty to correct and update information; duty to provide notice of delinquency of accounts; and obligations upon notice of dispute.

Quarterly Consumer Credit Trends Report

This ninth report looks at the National Consumer Assistance Plan (NCAP) public records provision’s effect on the relationship between credit scores and consumer’s credit performance for consumers that had a civil judgment or tax lien removed from their credit report and those that did not. The report concludes that the public records provision of the NCAP did not seem to have a large effect on the relationship between credit scores and consumer’s credit performance. Within credit score categories, the differences in delinquency rates across these groups of consumers did not change dramatically over time on all loans or new loans.

Washington State Labor & Industries (L&I)

Changes Made to Washington’s Overtime Rules

Under the final rule changes, the minimum pay a salaried worker must receive to be considered exempt will increase incrementally over time until 2028. The minimum pay threshold is set using a multiplier of the state’s minimum wage. Starting with a multiplier of 1.25 times the minimum wage in 2020 ($675 a week or $35,100 a year) and increasing until it reaches the multiplier of 2.5 times the minimum wage in 2028 ($1,603 a week or $83,356 a year).

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Dec. 16. The last update prior to this was Dec. 9.

Questions? Contact the Compliance Hotline: 1.800.546.4465; [email protected].