Compliance

New NCUA rule addresses criminal background checks for staff, volunteers

ANALYSIS:  The NCUA Board recently approved a final rule that allows people with convictions for certain minor or older offenses to work and volunteer for federally insured credit unions (FICUs) without applying for NCUA approval.

The rule says that all credit unions must “make a reasonable, documented, inquiry” into an applicant’s criminal history to ensure that a person who has a “covered offense” is not hired or permitted to participate in a FICU’s affairs without the written consent of the NCUA.

Because the rule largely follows existing policy guidance that the NCUA issued in 2019, many of the requirements are not exactly “new.” However, the rule relaxes some of the NCUA standards that had been in place.

The rule applies to all Wisconsin credit unions, state-chartered or federally chartered, regardless of asset size. It takes effect on Oct. 30, 2024.

Be careful when accepting check deposits from new businesses

TIP:  This Compliance Courier was adapted (with permission) from a recent blog post written by Shelli Clarkston, an attorney with the Spencer Fane law firm in Kansas City, MO.

Recently, credit unions and other financial institutions have faced losses because of a growing fraud scheme. Credit unions should understand this scam and take precautions to protect themselves.

America's Credit Unions is ending CU CMS

FinCEN provides "informal" guidance on completing CTRs for deposits into business accounts