NCUA Board Meeting Agenda Set; Spitzer, SARs and Members; Fishy Wedding Stuff
NCUA has released the agenda for this Thursday's NCUA Board meeting. You can access it here. Of note, the Board will consider a proposed Interpretive Ruling and Policy Statement, which would be proposed IRPS 08-1, Guidance Regarding Prohibitions Imposed by Section 205(d) of the Federal Credit Union Act. That section addresses prohibitions from credit union service arising from a criminal offense. You can access that section of the Federal Credit Union Act here. (Note that under the U.S. Code, this section is 12 U.S.C. 1785(d).)
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We've heard from some credit unions that are concerned about potential member questions arising from the Elliot Spitzer situation. As press reports detail how bank filings led to his demise, members may ask credit unions exactly what they monitor and report. I always think it is better to arm front-line staff with a pre-arranged answer to such questions. Confident and accurate answers always save the day. Here's the rub: credit unions would want to draft a response that is accurate, but doesn't: 1) scare the pants of members; or 2) give them too much information about how the credit union monitors and reports. Ultimately, whether you choose to create a statement or how one would look is up to you. But here are a few to get the creative juices flowing.
Example 1: Our credit union monitors your every move with a supercomputer. If anything seems "fishy," we will alert law enforcement by filing a report. These are the same reports that led to the resignation of Governor Spitzer. Why do you ask? Hmmmm?
No good.  Such a response might create waves of paranoia within your membership.Â
Example 2: Our credit union is required by law to maintain certain records and make certain reports to federal agencies to help prevent or deter money laundering and financial crimes. For example, if you deposit more than $10,000 in currency in one business day, we'll file a CTR. If, however, you deposit $9,999.99 in currency in one business day, we won't file a CTR. But we'd file a SAR. Your best bet is to deposit no more than $900 a day."
No good. Such a response gives members far too much information, and could even be seen as aiding and abetting money launderers. (On a side note, the term "aiding and abetting" is one of my favorites.)
Example 3. Our credit union is required by federal law and regulations to maintain certain records and make certain reports to help law enforcement detect and prevent money laundering and other financial crimes. If you are interested in additional information, you can visit the Financial Crimes Enforcement Network's website at www.fincen.gov.
Better. I think this type of response strikes a good balance.
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The Compliance Guy just picked up his wedding license. While I'm sure that license requirements vary from place to place, I could not help wondering why I had to answer more questions to obtain a fishing license last summer in Maine. This might have something to say about marriage, fishing, or Maine. Or perhaps all three.