June 23, 2021

3 compliance hotspots for your credit union in 2016

first_img2015 culminated with one of the biggest changes to ever impact mortgage lending, the disclosure integration of Truth in Lending and the Real Estate Settlement Procedures Act. Full compliance with the new rule is something many credit unions are still working on and that will continue to be the case in 2016. Beyond that, though, three areas stand out as compliance hotspots for 2016: the implications of money service businesses on your Bank Secrecy Act program, compliance management expectations, and the complaint management process.MSBs and Your BSA ProgramMSBs are entities that generally provide products and services involving money orders, traveler’s checks, currency exchange, check cashing, and the like. These products and services often involve cash and currency and can correspond to a greater risk of fraud and money laundering. Consequently, more due diligence is required to manage that risk and avoid BSA violations.A phenomenon among mega-banks known as “derisking” increases the likelihood MSBs will approach credit unions to establish account relationships. When mega-banks “derisk” an MSB, they decide the BSA risk is too great to provide account services to that MSB. Further, instead of spending the time and resources necessary to conduct initial and ongoing due diligence on individual MSBs and manage the risk, mega-banks may decide to not work with any MSBs and avoid the due diligence and BSA risk all together. continue reading » 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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