January 15, 2014

Civil money penalties ahead for late 5300 filers

NCUA plans to begin assessing civil money penalties against credit unions filing their call reports late beginning this April, the agency said in a Letter to Credit Unions Wednesday.

The letter says credit unions that filed their fourth-quarter 2013 call reports late will receive "warning" letters this February about the plan for future penalties. Those letters will be addressed to credit union boards and CEOs.

In April, after first-quarter 2014 reports are due, the agency will begin to assess civil money penalties against those filing late. The letter sets out a sliding scale of penalties based on a number of factors, including the seriousness of the violation. Penalties could be quite severe in the worst cases.

The civil money penalties will be paid to Treasury and not NCUA.