Removing Barriers Blog

CUNA Offers Suggestions as Part of NCUA’s Annual Regulatory Review
Posted August 11, 2017 by CUNA Advocacy

Earlier today, CUNA’s Senior Director of Advocacy and Counsel Luke Martone, sent a letter to the NCUA in regard to the Office of General Counsel’s list of regulations scheduled for review this year. 

In the letter, CUNA reminds the NCUA of that the cumulative regulatory burden on credit unions is at an all-time high and urged the NCUA to promulgate new or expand existing rules only if such rules are clearly warranted based on a compelling need. Similarly, the agency should strongly consider the current regulatory burden on credit unions as it proceeds with this and future regulatory reviews. 
One of the main points of the letter is requesting the NCUA to minimize compliance burdens related to the Bank Secrecy Act (BSA).  Compliance with BSA and anti-money laundering (AML) requirements remains a substantial regulatory issue for a number of credit unions. The letter highlights a number of the compliance burdens and also gives ideas and suggestions on how to reduce the regulatory burden for BSA/AML compliance.   
The letter also reiterates CUNA’s concerns with a yet-finalized joint proposal issued at the end last year that would mandate acceptance of private flood insurance under certain circumstances. CUNA urges the agency to use its discretion to adopt changes that will not unduly increase the compliance burden on credit unions or detract from their ability to independently manage their institutions. 
CUNA appreciates the opportunity to share insights regarding NCUA’s 2017 regulatory review. While CUNA recognizes that some of the concerns and suggestions detailed in the letter are outside NCUA’s sole authority, we continue to urge the agency to work with its federal partners, including Congress, to achieve meaningful regulatory relief for credit unions.