regulatory and compliance issues and considerations

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In addition, each Credit Union should review NCUA Letter 03-FCU-07 and the Appendix thereto with regard to other audit, management and operational considerations. The audit function is becoming more and more important with the need to insure an thorough and un-conflicted audit process. This ranges from independent to internal audit functions. Beware of Rubber Stamps or other indicia of activity not strictly within the bounds of a thorough and independent process: In the world or Enron, Sarbanes-Oxley and NCUA Letter 03-FCU-07 (and the Appendix thereto), the Credit Union should watch out for any rubber stamps. A modest example: Under the Am. Bar Association Standards and in consideration of the foregoing, we and other attorneys who choose to follow appropriate practices, take these issues seriously. This includes responses to Auditor's Inquiry Letters. For the last 18-years, we have followed the practice of reviewing our annual relations with the Credit Union (or the audit period as noted in the letter), which includes reviews of files as needed and interviews with personnel that have handled Credit Union matters when we are asked to respond to such letters. This process can take anywhere from 1 to 4 hours depending on the client and the scope of the matters we have handled. (Retainer Clients: This is handled as a part of your annual retainer // Non-Retainer: We cap billing at a maximum of .75 hours regardless of the time required). In this process we will note any items that fall within the potential loss-contingencies applicable per the ABA Statements of Policy as well as any item that we feel necessary to accurate disclosure per the considerations noted (while at all time retaining attorneyclient privilege). If there is an item that requires disclosure, we will consult with the Credit Union before preparing our response. You should be aware of these requirements; and perhaps question any "rubber stamps" should you become aware of any such possibility. Not every item below will apply to every Credit Union. This is intended as a “guide.” Specific issues and questions should be discussed with compliance, legal and employment advisers as applicable. Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 4
I. POLICY AND GUIDELINES Portions Omitted ABC Federal Credit Union and any CUSO or Affiliates policies and guidelines respecting compliance with the bank bribery statute and conflicts of interest are set out below. Maintaining a Positive Workplace II. ACCEPTING GIFTS MAY BE A CRIME It is a federal crime for any representatives of ABC Federal Credit Union or any CUSO or affiliates to seek or accept anything of value, for themselves or others, in connection with business of ABC Federal Credit Union or any CUSO where there is a corrupt intent that such representatives shall be influenced or rewarded related to ABC Federal Credit Union or any CUSO business. It is also a crime for anyone (including members, vendors and others) to offer or give anything to representatives of ABC Federal Credit Union or any CUSO with corrupt intent. This is provided in Title 18, section 215 of the United States Code (The Bank Bribery Act). Violations are punishable by fines and imprisonment. Section 215 applies to all officers, directors, employees, agents or attorneys of ABC Federal Credit Union or any CUSO and affiliates. Such persons are referred to below as "representatives of ABC Federal Credit Union or any CUSO.”. III. POLICY REGARDING ACCEPTING GIFTS A. General Policy No representative of ABC Federal Credit Union may solicit or accept anything of value (except normal compensation or fees) in connection with business of ABC Federal Credit Union or information about ABC Federal Credit Union or its business, except as provided below. Gifts or benefits may not be solicited or accepted, either personally, or on behalf of any other person or entity. This policy applies to gifts or favors from: 1. anyone who is seeking to obtain a loan from ABC Federal Credit Union or any CUSO ; 2. anyone who has or is seeking to obtain business or financial relations of any type with ABC Federal Credit Union or any CUSO ; 3. anyone who has interests that may be substantially affected by decisions or actions of ABC Federal Credit Union or any CUSO ; Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 5
Page 1 and 2: Compliance Update - I REGULATORY AN
Page 3 and 4: Introductory Notes: Basic Obligatio
Page 5 and 6: performed by boards of directors. T
Page 7 and 8: What if an applicant “volunteers
Page 9 and 10: Please answer the following questio
Page 11 and 12: MULTIPLE ISSUES AND RESOURCES - SOM
Page 13 and 14: • Review of the negative shares r
Page 15 and 16: illustrates how certain provisions
Page 17 and 18: SAMPLE CREDIT UNION BUSINESS PLAN M
Page 19 and 20: EMPLOYMENT AGREEMENT Revise to addr
Page 21 and 22: 13. Evaluate the job performance of
Page 23 and 24: 2. By Employer For No Cause. Employ
Page 25 and 26: Vendor Due Diligence II Security As
Page 27 and 28: Vendor Due Diligence VII TERM AND T
Page 29 and 30: Vendor Due Diligence XII Backgroun
Page 31 and 32: Monitoring the Vendor At a minimum,
Page 33 and 34: NOTE: The BSA also contains a “wh
Page 35 and 36: (5) Confidentiality of reports. SAR
Page 37 and 38: PRIVACY - INFORMATION SECURITY Priv
Page 39 and 40: Disposal of Consumer Reports and Ot
Page 41 and 42: Compliance Update - II REGULATORY A
Page 43: Introductory Notes: Knowing if you
Page 47 and 48: any CUSO. [Gifts may not be accepte
Page 49 and 50: Conference and Seminar Costs Fees f
Page 51 and 52: We have stated that there must be a
Page 53 and 54: IV. POLICY REGARDING CONFLICTS OF I
Page 55 and 56: public, even though, such relatives
Page 57 and 58: and other relatives who live in the
Page 59 and 60: protection, and the reimbursement o
Page 61 and 62: Legal / Compliance Consultation Not
Page 63 and 64: MERGER AND CONSOLIDATIONS ISSUES NO
Page 65 and 66: information of which unauthorized d
Page 67 and 68: A Review of ‘Red Flags’ and wha
Page 69 and 70: Business Depositors: Understanding
Page 71 and 72: WHAT POLICIES, PROCEDURES AND RISK
Page 73 and 74: 16. Conflict of Interest/Code of Et
Page 75 and 76: Union Assessment 33. Identity Theft
Page 77 and 78: Procedures 60. Training Policy See
Page 79 and 80: Also - consider the other changes c
Page 81 and 82: policies, procedures and documents
Page 83 and 84: Underwriting Advertising In July 20
Page 85 and 86: 135-2009 Community Notice // OE/CE
Page 87 and 88: Credit Union’s lien right are not

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