Compliance Blog

On June 14^th, the Office of Information and Regulatory Affairs released the Spring 2023 Unified Agenda of Regulatory and Deregulatory Actions. This Agenda includes expected regulatory actions for the rest of the year and beyond. Here are the expected final rules, pre-rules, and proposed rules for the Consumer Financial Protection Bureau (CFPB), Financial Crimes Enforcement Network (FinCEN), and the National Credit Union Administration (NCUA).  In this blog, we’ll go over NCUA’s planned agenda.

The agenda lists one pre-rule, seven proposed rules, and nine final rules for NCUA. The expected or actual issuance dates are in parenthesis.

·       Climate-Related Financial Risk (June, 2023): NCUA is planning on releasing an Advanced Notice of Proposed Rule Making (ANPRM) that will seek input on current/prospective climate-related financial risks to federally-insured credit unions.  

·       Automated Valuation Models (June 1, 2023): This proposed rule deals with automated valuation models (AVMs) and was published on June 1^st. The rule implements quality control standards required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) for AVMs. You can find NAFCU’s summary of the proposed rule here.

·        Investment and Deposit Activities (October, 2023): NCUA is considering amending Part 703 to modernize NCUA’s investment rule. 

·       Digital Assets and Related Technology (January, 2024): NCUA is considering a proposed rule on digital assets building off of its previous Request for Information and the 2022 Executive Order on Ensuring Responsible Development of Digital Assets.

·       Procedures for Monitoring Bank Secrecy Act Compliance (December, 2023): This expected proposed rule would amend NCUA’s BSA supervision program to comply with the Anti-Money Laundering Act of 2020.  

·       Simplification of Share Insurance Rules (July, 2023):NCUA is considering a proposed rule amending and simplifying its share insurance rules. This rule would establish a trust accounts category to govern both revocable and irrevocable trusts and provide consistent treatment for mortgage servicing account balances that are held to satisfy principal and interest obligations to a lender.

·       Incorporation of Existing Statement of Policy Regarding Exceptions to Employment Restrictions Under Section 205(d) of the Federal Credit Union Act (July, 2023): NCUA is considering a proposed rule that would amend prohibitions on certain persons from participating in the affairs of a federally-insured credit union. 

·       Charitable Donation Accounts (May 25, 2023):This proposed rule proposes to add 501(c)(19) veteran’s charities as permissible charities for charitable donation accounts. Here is a NAFCU summary of the proposal. 

Temporary Regulatory Relief in Response to COVID-19 Prompt Corrective Action (January, 2024): This final rule will deal with Covid-19 related relief that was previously made available to credit unions. 

·       Overdraft Policy (January, 2024): This final rule would modify the time limit requirements for a member to deposit funds or obtain a loan after overdrawing an account. The proposed rule can be found here and NAFCU’s summary can be found here.

·       Bank Secrecy Act (June, 2023): The final rule would amend suspicious activity report (SAR) requirements to allow for certain exemptions to the SAR filing requirements. The proposed rule can be found here. 

·       Uniform Rules of Practice and Procedure (June, 2023): The final rule would update the Uniform Rules of Practice and Procedure. The proposed rule can be found here. 

·       Subordinated Debt (March 16 2023): The final rule amends the rules governing subordinated debt and grandfathered secondary capital. NAFCU’s final regulation summary can be found here.

·       ACCESS Initiative: Chartering and Field of Membership (FOM) Regulations (September, 2023): This final is aimed to “remove outdated requirements, simplify the charter approval process, and clarify regulatory language.” The proposed rule can be found here and NAFCU’s summary can be found here. 

Fintech (September, 2023): This final rule would amend rules regarding loan participations and the purchase/sale/pledge of eligible obligations to better allow credit unions to make use of opportunities provided by fintechs. The proposed rule can be found here.

·       Technical Amendments (November, 2023): NCUA is notifying credit unions that it will be making technical and non-substantive changes to various regulations. 

·       CUGMA (June, 2023): Final rule that would amend the model bylaws to make it easier for a board of directors to expel certain members. The proposed rule can be found here and NAFCU’s summary can be found here.  

--------

SAVE 10% OFF Online Compliance Training Subscriptions: Save up to hundreds off with code SAVE10 for a limited time. Subscribe now!