Compliance Blog

NCUA recently issued this legal opinion letter to address whether a credit union could provide cash to a non-member third party ATM holder.  NCUA held that the credit union could not for the following reason:

You have asked if an arrangement between your client, a federal credit union (FCU), and a third party owner of ATMs in which the FCU provides cash to stock the ATMs is permissible under the FCU’s express or incidental powers. Based on the information you provided and our review of the proposed contract governing the relationship, we conclude this is not a permissible activity. While an FCU may provide ATM services to its members, the arrangement appears to be in the nature of an impermissible business service provided to the third party and only incidentally focused on assuring member access to the ATMs.

The letter provides an interesting discussion regarding whether credit unions can provide services to nonmembers. It is a good read.

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Overheard at NAFCU's Regulatory Compliance Seminar:

• Insider abuse, for the purposes of SAR filings, does not include when someone steals bacon out of a credit union's shared refrigerator.  Yes, someone did file a SAR for that reason, according to FinCEN.
• The Delicious service can help you better manage your compliance related bookmarks.

• Lots of discussion regarding share insurance.