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News Now

Washington
Late call report filers will be fined by NCUA--starting soon
ALEXANDRIA, Va. (1/16/14)--Procrastinators beware: The National Credit Union Administration will begin to impose civil money penalties against federally insured credit unions (FICUs) that do not meet their quarterly call report filing deadlines.

In a Letter to Credit Unions (14-CU-03) released last night, the NCUA called tardy filing is "a serious problem" and financial penalties will be assessed starting in the second quarter of this year.

The agency first informed credit unions of its plan to charge such fees in a letter to credit unions in October.

The agency reported that  more than 1,000 FICUs of all asset sizes filed their call reports after the 2013 third quarter deadline had passed, with a large percentage of these late filers being chronically late. "Such late filing impacts NCUA's ability to conduct effective off-site supervision and delays the release of quarterly industry data to the general public," and is a drain on NCUA resources.

The agency said it plans to charge:
  • Up to a maximum of $2,000 per day for each day a required report is "minimally" late or contains uncorrected false/misleading information if the late or false/misleading filing is unintentional and the credit union has reasonable procedures in place to avoid such errors;
  • Up to a maximum of $20,000 per day for each day a required report is late or contains false/misleading information if the late or false/misleading filing is not covered by the "unintentional" safe harbor outlined above;
  • Up to a maximum of $1 million, or 1% of total assets, whichever is less, per day if a federally insured credit union knowingly or with reckless disregard for accuracy submits a false or misleading report and fails to correct it.
To determine the size of the fine, the NCUA said it will consider:
  • The size of financial resources and good faith of the credit union;
  • The gravity of the violation;
  • The history of previous violations; and
  • Other matters as justice may require regarding the circumstances of late or false/misleading submissions, such as natural disasters and incapacitation of key employees.
Proceeds from the fines will go to the U.S. Treasury, the NCUA said.

Those that file late in the 2014 first quarter will receive warning letters with an estimate of what the assessed penalty would have been.

The Call Report filing deadlines for 2014 are:
  • Jan. 24 for 2013 fourth quarter filings;
  • April 25 for 2014 first quarter filings;
  • July 25 for 2014 second quarter filings; and
  • Oct. 24 for 2014 third quarter filings.
For the full NCUA letter, use the resource link.
Other Resources

NCUA Letter
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