Newsroom

November 18, 2015

Vault disasters, security covered in NAFCU webcast

With safe deposit vault burglaries on the rise, a credit union's only defense against a burglary is an adequate alarm system and internal security procedures that will hold up in court, Safe Deposit Specialists President David McGuinn told NAFCU webcast attendees Tuesday.

During Tuesday's webcast, "Pitfalls of Vault Security, Disasters and Self-Service Boxes," viewers examined what steps to take after a burglary or natural disaster impacts a credit union's vault and the types of disclosure notices that should be provided to new box renters. Viewers also learned how to properly train their staff on how to answer their members' security and disaster questions.

McGuinn also covered what must be in a safe deposit vault disaster (fire or flood) manual, including written notification letters, handling of box content removal, drying or cleaning box contents and addressing health concerns.

He also noted that more than 50 percent of credit unions' box holders mistakenly believe the credit union or NCUA insures the contents. McGuinn said members need to be informed that their contents are not insured. He said credit unions can offer their members special insurance for their box contents and should provide clear disclosures when members open a box.

During tomorrow's webcast, NAFCU's regulatory compliance team will update credit unions on the compliance side of recent CFPB and NCUA rules, regulations and guidance. Speakers include NAFCU Director of Regulatory Compliance Brandy Bruyere; and Regulatory Compliance Counsels Eliott Ponte, Elizabeth LaBerge and Victoria Daka.