ALEXANDRIA, Va. (6/28/11)--Just two-and-a-half weeks after issuing a cease-and-desist order to the $7 million-asset credit union, the National Credit Union Administration (NCUA) assumed control of Borinquen FCU of Philadelphia on Friday. Under NCUA control, the credit union will continue to provide services to 8,600 Borinquen members, while working to resolve issues the agency said have affected the safety and soundness of the institution. In its cease-and-desist order, the NCUA noted that the credit union has had "serious and persistent record keeping problems" and had failed to perform yearly audits. The NCUA ordered the credit union to:
* Obtain an opinion audit and member account verifications from a certified public accountant; * Reconcile its cash and bank accounts; and * Establish a Bank Secrecy Act compliance program by June 30.
Borinquen FCU is the seventh federally insured credit union placed into conservatorship during 2011. Also on Friday, the NCUA announced it had placed O.U.R. FCU of Eugene, Ore., with $4.3 million in asset, into conservatorship to allow it to continue full operations for its 2,184 members while operating under NCUA control and addressing “previous service and operational weaknesses.” Borinquen and O.U.R. are the seventh and eighth credit unions, respectively, to be placed into conservatorships this year. Use the resource link to see information posted on the credit unions’ websites to help members understand the impact of the conservatorship.