2012 Third Quarter Compliance and Regulatory Issue Review.

2012 Third QuarterCompliance and

Regulatory Issue Review

Overview of 3rd Quarter Compliance Issues

• Bank Secrecy Act – Electronic Filing/New Formats

• FCC Telemarketing Rules

• NCUA – Interest Rate Risk

• NCUA – Troubled Debt Restructuring

BSA E-Filing Guidance

• Electronic filing required by July 1, 2012

• New CTR and SAR formats

• CTR filing within 15 days – required by March 31, 2013

• SAR continued activity filing clarification

For additional information: http://www.fincen.gov/forms/e-filing/And CUBE TV: http://mi.cubetvonline.com/cubetv/index.php?view=video&id=763

FCC’s Telemarketing Rules

• Opt-out must be provided for prerecorded telemarketing calls

For additional information: http://www.gpo.gov/fdsys/pkg/FR-2012-06-11/pdf/2012-13862.pdf

And: http://www.fcc.gov/document/fcc-strengthens-consumer-protections-against-telemarketing-robocalls-0

Interest Rate Risk Policy & Program• NCUA Letter to Credit Unions 12-CU-05

• Comprehensive IRR written policy;

• Accountable oversight by the Board and management;

• Measurement and monitoring systems;

• Internal controls; and

• Decisions based on IRR measurement results.

For additional information: http://www.ncua.gov/Resources/Pages/LCU2012-05.aspxAnd CUBE TV: http://mi.cubetvonline.com/cubetv/index.php?view=video&id=834

TDRs - Loan Workouts – Nonaccrual• NCUA – 12 CFR 741 - Troubled Debt

Restructuring and Loan Workout and Nonaccrual Policy

Relaxed reporting requirements

New written loan workout policies

Loans over 90 days past due must be on nonaccrual

For information on TDR’s: http://www.ncua.gov/Legal/Documents/Regulations/PR20120126LoanWorkouts.pdfAnd CUBE TV: http://mi.cubetvonline.com/cubetv/index.php?view=video&id=790

Fourth Quarter Compliance Issues

• Required reviews and audits

ACH

S.A.F.E. Act

• Unlimited share insurance for non-interest bearing accounts expires

For information on Share Insurance: http://www.ncua.gov/Legal/GuidesEtc/GuidesManuals/NCUAHowYourAcctInsured.pdf

CFPB Focus as of June 2012:

For additional information: http://www.consumerfinance.gov/notice-and-comment/And: http://www.consumerfinance.gov/regulations/fall-2011-statement-of-regulatory-priorities/

• Electronic fund transfers• RESPA• Equal Credit Opportunity

Act• Fair Credit Reporting• Privacy of consumer

financial information• Truth in Savings & Lending

• S.A.F.E. Act• Home Mortgage Disclosure

Act• Fair debt collection practices• Private education lending• Pre-dispute Arbitration • Overdraft programs• Prepaid cards• Elder Abuse

CFPB

NCUA Pending Changes

Information on Fleet: http://www.ncua.gov/News/Press/NW20120918CUFlex.pdfInformation on Reg. Relief: http://www.ncua.gov/about/Pages/Board%20Actions/BAB20120920.aspx

• Fleet Vehicle definition amended – 5• Newly Proposed Rules for Regulatory Relief

“Small Entity” – from $10M to $30M Rural District Definition Variable-rate TIPS Investments Payday Alternative Lending

Thank you for joining me for this 3nd Quarter Review

of compliance issues important for your credit union!