Compliance News

May 31, 2018 – Compliance Update

FinCEN Ruling

The Financial Crimes Enforcement Network (FinCEN) has issued FIN-2018-R002 regarding the Customer Due Diligence/Beneficial Owner Rule. The ruling provides a 90-day limited exceptive relief for certain financial products and services that automatically rollover or renew (i.e., certificates or loan accounts) if they were established prior to the Beneficial Ownership Rule’s effective date of May 11, 2018. This exception begins, retroactively, on May 11, 2018, and will expire on August 9, 2018.

Elder Abuse Webinar

The Bureau of Consumer Financial Protection and FinCEN will host a webinar on their Joint Memorandum (issued August 30, 2017) to encourage coordination among financial institutions, law enforcement, and adult protective service agencies (APS) to protect older adults from financial exploitation. The webinar will be held on Thursday, June 7, from 2:00 -3:30 PM EDT. Register to attend this free webinar.

The webinar will focus on the importance of Suspicious Activity Reports (SARs) and the role that they may play in aiding law enforcement’s investigation of elder financial exploitation cases with an emphasis on collaboration. Don’t forget to take advantage of CCUA’s online training certification resource on the subject of elder financial exploitation and CCUA’s compliance toolkit on this subject.


The Bureau of Consumer Financial Protection has updated the TRID Small Entity Compliance Guide and Guides to Forms. This update reflects the recent final rule that was issued on May 15, 2018.


Low-income federally insured credit unions interested in becoming certified community development financial institutions can apply to use the National Credit Union Administration’s streamlined application process beginning June 4. The streamlined application period closes June 22.

NCUA Proposed Rule on Payday Alternative Loans

At this month’s NCUA board meeting, the Board issues a proposed rule that would create an additional option for Payday Alternative Loans. Comments must be receiving within 60 days after publication in the Federal Register.

The proposed terms of this new option (PALs II loans) would provide for more flexibility and potential for more profitability for FCUs.  The Board notes that PALs II would not replace PALs I. Rather, PALs II would be an additional option FCUs could choose in making PALs loans to their members. An FCU could choose to make PALs I loans, PALs II loans, or both.

The PAL II loan would permit loans in amounts up to $2,000 and would not include a minimum loan amount. A maximum loan term of 12 months is being proposed with a minimum term of one month. FCUs would be free to choose an appropriate loan term, provided the loan fully amortizes. FCUs are encouraged to select loan terms that are in the best financial interests of borrowers. There would be no minimum length of membership requirement for a PAL II loan – PAL I loans require membership for at least one month.

Finally, the Board proposes no limitation in the the number of PALs II loans made by the FCU to one member in a rolling six-month period. This limitation is applicable to PALs I loans and permits FCUs to make one loan at a time to a a borrower and no more than three in any rolling six-month period. Under this proposal, FCUs would be permitted to only make one loan at a time to any one borrower, but would be able to make additional loans to that borrower with no time restrictions provided there is only one loan outstanding at a time to that borrower.

InfoSight Highlight

InfoSight contains a channel completely dedicated to checklists. From Account Aggregation to Vendor Due Diligence and Employee Privacy and Monetary Instruments and everything in between, over 60 checklists are available for your use.  Be sure to stay up-to-date with your checklists today!

Interested in learning more about CCUA’s Compliance Department and resources? Be sure to check out the CCUA website or contact the Compliance Hotline at 800-842-1242, press 4.

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