Compliance Center: NCUA Releases Regulatory Alert on IOLTAs and CUSO Registry Will Open in February

NCUA provides updated guidance on enhanced share insurance coverage for IOLTA and other similar escrow accounts; your question answered about safe deposit boxes and BSA compliance, plus this week’s legal briefs.

Compliance Center: FinCEN Issues Guidance on Human Smuggling and Human Trafficking

FinCEN issues guidance on recognizing human trafficking; tools for detecting representative payee fraud; and this week’s legal briefs.

FinCEN ‘Unlocks the Door’ to Serving Marijuana-Related Businesses, Attorney Says

FinCEN’s guidance for credit unions that want to serve marijuana-related businesses certainly provides clarity, attorney Hal Scoggins writes, but it brings minimal regulatory relief.

FinCEN Issues Guidance on Offering Financial Services to Marijuana-Related Businesses

Washington credit unions can provide financial services to marijuana-related businesses, the federal Financial Crimes Enforcement Network said in a guidance issued Friday afternoon, but the decision to do so comes with increased due diligence and very specific risk-analysis requirements.

Target Confirms Massive Data Breach; 40 Million Cards May Be Affected

Financial institutions and consumers are reeling this morning from news of a massive data breach at Target stores nationwide that could affect as many as 40 million credit and debit card accounts, making it potentially one of the largest retail breaches in U.S. history.

Technology Security Expert: Our Opponents are not Complacent

Financial institutions are attractive targets for cyber criminals. A technology security expert is sharing insight with Northwest credit unions at the next Tech/Security council. Don Rudolph says the financial industry is well prepared now but can take additional steps to stay ahead of attackers.

Credit Union Security Vigilance Urged as New Cyber Attack Warnings are Issued

The FBI has warned financial institutions of the possibility of a Sept. 11 cyber attack. The NWCUA’s compliance team continues to track internet chatter warning of cyber attacks and offers security information to member credit unions.

NCUA Updates Exam Guidance on Loan Workouts, Nonaccrual, TDR Reporting

In a letter issued last week, the NCUA shared with credit unions the same TDR guidance it shared with its examiners, describing in detail how examiners will apply the regulatory improvements approved last year by the NCUA board of directors.

FinCEN Issues Advisory on Tax Refund Identity Theft

Credit unions are critical in identifying tax refund fraud, and to assist credit unions in identifying potential cases, FinCEN has identified a number of red flags to bear in mind during tax season.

Credit Unions’ Ability to Bank Marijuana Businesses Still Hazy

The passage of I-502 in Washington last November has prompted extensive discussion regarding how credit unions should handle requests to open a business account for a business in the newly legal “marijuana industry.” The NWCUA’s David Curtis offers several factors to consider before deciding whether or not to bank these types of businesses.

Compliance Question of the Week

Are we required to implement policies and procedures specifically relating to safe deposit boxes and Bank Secrecy Act (BSA) monitoring? We have heard rumors that the NCUA is asking credit unions to produce and monitor reports that monitor safe deposit box activity.

Compliance Question of the Week

What activities are considered “suspicious” when I’m considering whether or not to file a SAR?

FinCEN Issues Advisory on Risk Associated with Third-Party Payment Processors

FinCEN has released an advisory providing guidance to financial institutions when filing SARS on activities related to third-party payment processors. It is designed to further the Department of Treasury’s efforts to protect against money laundering and terrorist financing.

Administrative Ruling Regarding the Participation of Associations of Financial Institutions in the 314(b) Program

FinCEN has defined the term “association of financial institutions” as “a group or organization the membership of which is comprised entirely of financial institutions.” An association of financial institutions may share information under section 314(b) of the USA PATRIOT Act.

Legal Briefs

Your weekly update on the regulatory landscape.

FinCEN Addresses Tax Refund Fraud Prevention and Detection

Credit unions are well positioned to discover instances of tax refund fraud, and FinCEN issued an advisory last week with several signs of potential fraud to be wary of in the coming weeks.

Mortgage-fraud SARs Increased in the Third Quarter of 2011

FinCEN recently reported that 19,934 mortgage loan fraud SARs were filed during the third quarter of 2011, representing a 20-percent increase over 2010’s third-quarter total and 10 percent of all SARs filed during the quarter.

Legal Briefs – Dec 28, 2011

Your rundown on the regulatory landscape.