WASHINGTON (10/17/11)--The Credit Union National Association (CUNA) continued to emphasize the high compliance burdens and increased costs that the Federal Reserve’s proposed remittance changes would impose on credit unions during a meeting with the Consumer Financial Protection Bureau (CFPB) last week. The Fed proposal, which will be finalized by the CFPB, would implement a provision of the Dodd-Frank Act to require credit unions and other remittance providers to provide estimates of fees and exchange rates. The proposal also includes new error resolutions procedures. CUNA specifically noted that the compliance burden would increase for credit unions and others that rely on “open networks,” adding that disproportionately high costs borne by smaller credit unions and other unintended consequences could effectively force many, if not most, credit unions to cease or limit their international wire and international automated clearinghouse (ACH) products. Bill Cheney, CUNA president/CEO, said CUNA “continues to seek a positive outcome on this proposal during the rulemaking process and will follow up with the CFPB to emphasize credit union concerns and to provide additional information.” CUNA last week also met with U.S. Treasury representatives at a Bank Secrecy Act (BSA) Advisory Group meeting. Suspicious activity report (SAR) activity review statistics and law enforcement cases, potential changes to BSA filing procedures, and the Financial Crimes Enforcement Network’s information technology modernization efforts were among the topics covered during the meeting. CUNA Deputy General Counsel Mary Dunn said CUNA’s regulatory advocacy staff will continue to work with the BSA group and their subcommittees, as well as CUNA’s Payments Policy Subcommittee and credit unions, to address further BSA developments and to minimize compliance burdens associated with reporting forms and regulatory proposals.
WASHINGTON (10/17/11)--The concerns of credit unions and the Credit Union National Association (CUNA) will be represented at today’s Financial Accounting Standards Board’s (FASB) private-company accounting roundtable by Patelco CU Chief Financial Officer and CUNA Accounting Subcommittee Chairman Scott Waite. The meeting, which is scheduled for 9 a.m. (PT) in San Francisco, Calif., will allow representatives from private companies, CPAs, and users of private-company financial statements to engage FASB “in a constructive dialogue about private-company accounting and reporting issues” related to U.S. generally accepted accounting principles (GAAP), FASB said in a release. The FASB release said accounting and disclosure requirements relating to variable interest entities, interest-rate swaps, and Level 3 fair value measurements will be among the items covered during the meeting. Waite noted that public and private companies currently abide by the same accounting standards, and many have suggested that changes are needed. Although public companies produce their financial statements mainly to inform their investors, credit union financial statements are mainly produced to inform the National Credit Union Administration and other regulators of their financial status. “The needs of the different types of users are different and so perhaps the standards should be as well,” Waite added. Waite told News Now that his comments will center on the relevancy of these standards, the cost and benefit of the standards and related disclosure requirements, and the rapid change in standards in recent years. The Financial Accounting Foundation earlier this month proposed establishing a new Private Company Standards Improvement Council. FASB in an earlier release said this new group, if approved, would review U.S. GAAP and determine how those standards could be improved to better serve the needs of private companies. The group could then issue modifications, if needed. For more on FASB’s meeting and the potential standards improvement council, use the resource links.