March 03, 2014

March Monitor focuses on NCUA, data breaches

March 4, 2014 – NAFCU's March issue of the Compliance Monitor focuses on NCUA's supervisory focus for 2014, dealing with the examination process, and regulations most important to credit unions in dealing with data breaches.

NAFCU Regulatory Compliance Counsel Brandy Bruyere wrote about NCUA's focus on potential risks and compliance with new rules. Bruyere explained: "Given that risk can threaten credit unions' viability and the solvency of the share insurance fund, one area NCUA will prioritize this year is the management of potential risk.

"The agency identified several important areas of risk: interest rate risk, cybersecurity threats, money services businesses and private student lending," she continued.

Regulatory Affairs Counsel Alicia Nealon wrote on data security breaches, including last year's massive Target Corporation breach, and what compliance measures credit unions should be looking at now. "NAFCU has led the way in efforts to raise merchant security standards," Nealon wrote. "Until Congress passes new legislation to ensure merchants have effective safeguards in place to protect consumer information, there are a few existing regulations the compliance community should consider when a breach of information by a merchant occurs in order to protect both the credit union and its members."

The Compliance Monitor also features updated information on NAFCU education opportunities and upcoming compliance deadlines. NAFCU's compliance team also answered questions in the "Compliance Forum" section on share insurance coverage, advertising and the Real Estate Settlement Procedures Act.