The Office of the Comptroller of the Currency recently released updated guidance for national banks and federal savings associations for assessing and managing the risks associated with third-party relationships. The guidance does not directly apply to credit unions, but they still may find it useful.
What do we need to do when contracting with a third-party vendor?
If your credit union engages a third party to help review your fidelity bond and other insurance protections, CUNA Mutual Group explains why you should find out whether the third party is an independent consultant for a fee or a broker working on commissions from carriers.
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.
John M. Floyd, chairman and CEO of Strategic Link business partner JMFA, explains that credit unions must be mindful of how their overdraft program processes and fees affect members, especially in light of the CFPB’s efforts to protect consumers.
The CFPB recently issued a bulletin reminding credit unions that they can be held responsible for the actions of third-party contract service providers and that they are expected to have an effective process of managing risk in these relationships.