ARLINGTON, Va.—Credit unions will again have flexibility in 2021 to host their annual meetings and board meetings virtually, according to NCUA. Separately, the agency also joined other regulators in issuing clarifications related to the Bank Secrecy Act.
As previously released, a federal credit union may adopt a bylaw amendment by a two-thirds vote of its board of directors to hold its annual meeting virtually.
"The NCUA hereby notifies all federal credit unions that, if they have adopted this bylaw amendment, it is appropriate to invoke its provisions at any point in 2021 for meetings occurring in that year, if a majority of the board of directors so resolves for each such meeting," the NCUA stated in a Letter to Credit Unions. "General quorum requirements must still be met for all-virtual meetings."
The updated letter also adds language that allows for all board of directors meetings to be held virtually throughout the year.
“NCUA is also adding optional language related to board of directors’ meetings to the amendment. A federal credit union may choose to adopt the amendment with or without the underlined language related to board of directors’ meetings,” the letter states.
Clarifications Around BSA
Separately, federal financial institution regulatory agencies, including NCUA, have issued a joint fact sheet clarifying that credit union and compliance efforts to meet Bank Secrecy Act (BSA) due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship.
The fact sheet highlights the importance of legitimate charities and nonprofit organizations having access to financial services and being able to transmit funds through legitimate and transparent channels, especially in the context of responding to the coronavirus pandemic, CUNA said.
Other Clarifications
It also clarifies that charities and nonprofit organizations as a whole do not present a uniform or unacceptably high risk of being used or exploited for money laundering, terrorist financing, or sanctions violations, and that financial institutions must develop risk profiles that are.
The fact sheet does not alter existing BSA/anti-money laundering legal or regulatory requirements or establish new supervisory expectations, CUNA noted.
The fact sheet was developed by NCUA, the Federal Reserve, the FDIC, the Financial Crimes Enforcement Network and the Office of the Comptroller of the Currency.