regulatory and compliance issues and considerations
regulatory and compliance issues and considerations
regulatory and compliance issues and considerations
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WHAT POLICIES, PROCEDURES AND RISK ASSESSMENTS<br />
ARE WE REALLY REQUIRED TO HAVE?<br />
AND<br />
WHAT SOULD IT HAVE?<br />
Policies, Procedures <strong>and</strong> Assessments<br />
Many Credit Unions are confused by the myriad “requirements,” advice, rules,<br />
regulations, instructions as to what policies, procedures <strong>and</strong> assessments it is required<br />
to implement <strong>and</strong> maintain. (Out of Date Matters Such as Y2K Related <strong>issues</strong>; <strong>and</strong><br />
Items that are replaced by more current st<strong>and</strong>ards (Example: 1989 NCUA Letter<br />
on Technology Matters) are omitted from this Resource as not being applicable).<br />
To help I provide the following chart that provides:<br />
NOTE ONE: Generally, procedures are recommended in most instances based upon various legal<br />
liability <strong>and</strong> <strong>compliance</strong> <strong>considerations</strong>. Thus, the third column below is used for emphasis on<br />
areas where we consider such to be of particular importance. When properly drawn – <strong>and</strong> when<br />
combined with proper forms, procedures <strong>and</strong> other related tools – Credit Union procedures may<br />
provide a great deal of protection from liability claims <strong>and</strong> potential <strong>regulatory</strong> fines.<br />
NOTE TWO: References are to General Federal Laws / Regulations or to NCUA Regulatory Alerts,<br />
Letters to Credit Unions; Supervisory Letters; <strong>and</strong> the NCUA Field Examiners Guide. References<br />
are only to Active NCUA Resources. Retracted or Inactive Letters have not been used in this<br />
assessment.<br />
Policy / Procedure /<br />
Assessment<br />
Board Policy or<br />
Approval Required<br />
(as to Assessment<br />
<strong>and</strong>/or Procedures)<br />
Generally -- Left to<br />
Credit<br />
Union/Management<br />
– Board Approval or<br />
Assessment<br />
Generally Not<br />
Required<br />
NOTES <strong>and</strong>/or<br />
Recommendations<br />
per Legal /<br />
Compliance or as a<br />
Significant Liability<br />
Protection Tool<br />
1. Bank Secrecy Act 12 CFR 748, 31 CFR<br />
103 (Primary<br />
Regulation) - The Law<br />
states that the general<br />
BSA/AML program is<br />
to be Approved by the<br />
Board. The Board<br />
also appoints the BSA<br />
Officer. NOTE A.<br />
2. Bank Secrecy Act<br />
Risk Assessment<br />
For the most part the<br />
day-to-day<br />
procedures are<br />
addressed in several<br />
procedures; <strong>and</strong> via<br />
the Credit Union<br />
training materials <strong>and</strong><br />
record of training.<br />
NOTE B.<br />
Must be presented to <strong>and</strong> approved by the Board. NOTE C.<br />
No Further Comment.<br />
Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved.<br />
Revised February 2010<br />
31
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