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NAFCU Statement in Response to Report of Possible NCUA Encryption Rule

Washington (Jan. 7, 2015) - National Association of Federal Credit Unions (NAFCU)Director of Regulatory Affairs Alicia Nealon issued the following statement in response to National Credit Union Administration (NCUA) Board Chairman Debbie Matz's comments, as reported in Credit Union Times, of a possible encryption rule following an agency examiner's loss of a thumb drive containing sensitive credit union member data.

"Credit unions must already follow stringent data security and privacy requirements, and they have a strong track record of regulatory compliance with these requirements. Credit unions also constantly strive to implement the highest safeguards for their members' data," said Nealon. "A recent survey of NAFCU's member credit unions found that credit unions not only meet the regulatory requirements, but also voluntarily implement many of NCUA's suggested best practices in order to better safeguard their members. Rather than promulgating additional regulatory burdens on credit unions, NCUA should take alook internally at what actions the agency cantake to better protect thecredit unionsdata in its care."

Contact: Patty Briotta | 703-842-2820 | pbriotta@nafcu.org