WASHINGTON–CUNA and NAFCU have each sent letters to NCUA regarding the list of regulations scheduled for review this year.
Each year, NCUA examines one-third of its regulations as part of its annual review process.
Saying NCUA is aware that the “cumulative regulatory burden on credit unions is at an all-time high,” CUNA called on the agency 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, CUNA said.
Specifically, CUNA offered input on Part 748: Security Program, Report of Suspected Crimes, Suspicious Transactions, Catastrophic Acts and Bank Secrecy Act Compliance, and Part 760: Loans in Areas Having Special Flood Hazards.
For CUNA's full comment letter and its suggestions on numerous ways the trade group said NCUA could minimize compliance burdens, see CUToday.info’s The Gov.
Among several points NAFCU is making, the trade association is urging NCUA to coordinate with the Financial Crimes Enforcement Network to ensure "sensible regulation and exams are tailored to actual risks." NAFCU Senior Regulatory Affairs Counsel Michael Emancipator, who signed the letter, added that examiners should focus on the intent and usefulness of suspicious activity reports (SARs) rather than zero-tolerance, technical compliance.
"We recommend that NCUA amend Part 748 to reflect the spirit of the law while still ensuring safeguards are in place to inhibit bad actors from exploiting the financial system," he wrote. He also requested that NCUA support improvements to FinCEN regulations, such as increased thresholds for filing currency transaction and SARs.
Other key points:
Record retention and catastrophic preparedness guidelines: The NCUA should align these requirements with statutes of limitations. "Maintaining records indefinitely is an administrative burden that exceeds the reasonable intentions of record retention rules," Emancipator noted.
Flood insurance regulation: NAFCU recommends that the agency provide more flexibility with respect to the delivery and timing of required notices. The NCUA should support legislative efforts that would achieve long-term authorization of the National Flood Insurance Program.
Emancipator also reviewed NCUA's board rulemaking process and FOIA requests.
Among other comments, the NAFCU letter urges that the NCUA codify interpretive rulings and policy statements and standardize publication of legal opinion letters. It also reiterates NAFCU's recommendations regarding model bylaws and the payday alternative loan (PAL) program. Emancipator wrote that NCUA's "efforts to coordinate with other financial banking agencies to avoid regulations that would surely hamstring credit unions’ efforts to lend are appreciated."
For NAFCU'S Full comment letter and its suggestions on numerous ways the trade group said NCUA could minimize compliance burdens, see CUToday.info’s The Gov.