WASHINGTON— Congressional action may be needed for NCUA to achieve full modernization with industry standards and practices, NAFCU told the agency in a letter.
The letter was sent in response to NCUA’s 2021 regulatory review of one-third of its regulations.
In the letter, Director of Regulatory Affairs Ann Kossachev urged NCUA to work with members of Congress and support legislation to update the Federal Credit Union Act.
For instances where the NCUA has full authority to make changes, Kossachev outlined recommendations NAFCU wants NCUA to consider. The recommendations include focusing on intent and usefulness of SARs rather than technical compliance, including clear instructions for credit unions on addressing AML/CFT priorities in their risk assessments, considerations for flexibility on post-employment benefit offers, and more.
Update Needed
Kossachev wrote there is a need to update procedures on record retention for credit unions, and she called on the agency to align record retention requirements with statutes of limitations based on product and information type, provide guidance on corporate governance documents from merged credit unions, including whether they fall under the record requirements and if so the length of time the records should be retained.
“NAFCU appreciates the opportunity to provide comments on regulations under consideration in this year’s annual regulatory review,” Kossachev concluded. “NAFCU looks forward to future opportunities to work with the NCUA to achieve the modernization of the regulations affecting America’s credit unions.”