Van Beek explains “culture of compliance” in CUInsight
NAFCU Vice President of Regulatory Compliance Steve Van Beek
Aug. 28, 2013 – NAFCU Vice President of Regulatory Compliance Steve Van Beek wrote an editorial for CUInsight on Monday explaining the ways a credit union can foster a “culture of compliance” by incorporating compliance concerns and risk management into project development from the start.
“In the past, a compliance officer would be brought into a discussion at the tail end of a project’s development, to give approval or disapproval. In today’s world, a compliance officer needs a seat at the table to help evaluate the various risks of a new product or service,” Van Beek wrote. “The Consumer Financial Protection Bureau is not just rule- and requirement-focused – it is principle-focused. Their offices want to know not only if a credit union’s product or service is compliant with rules and guidance, but if that product or service provides a real benefit to members.”
Van Beek suggested credit unions consider several questions while developing a product or service to reduce potential regulatory issues and ensure that the credit union is providing good service. His questions included: “Is the product or service understandable and fair to members? Could what we’re doing pose a risk under the CFPB’s test for ‘unfair, deceptive and abusive practices?”
Van Beek encouraged credit unions to go beyond a “checklist” approach to compliance, and to remember that member service requires an awareness of the regulatory environment. He also reminded NAFCU members that the association has a “host of compliance resources and guides” on its website, in addition to direct access to NAFCU’s compliance team.
NAFCU compliance team