Final Regulation Summaries

The final rule would require all BSA reports, other than the Report of International Transportation of Currency or Monetary Instruments and the Report of Cash Payments over $10,000 Received in a Trade of Business (Form 8300), to be filed electronically.

The rule applies to traditional remittances as well as international ACH wire transfers. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) defines “remittance transfers” broadly and this rule covers nearly any electronic transfer of funds sent by consumers in the United States to recipients abroad.

The NCUA has issued a final rule that requires federally-insured credit unions (FICUs) to adopt and implement a written interest rate risk (IRR) policy and management program. The requirements would apply to all FICUs with assets over $50 million and FICUs with assets between $10 and $50 million if the total of first mortgage loans held plus total investments with greater than 5 years maturities is equal to or greater than 100% of net worth.

The final rule is a technical correction. There is no practical change for federal credit unions.

NCUA has issued a final rule amending its regulations that govern the process by which the agency solicits, receives, evaluates and acts on credit union applications for loans and technical assistance from the NCUA's Community Development Revolving Loan Fund (CDRLF).

The Stabilization Fund Expenditures Act amended the Federal Credit Union Act (FCU Act) by clarifying the NCUA's authority to make stabilization fund expenditures without borrowing from the Department of Treasury. It also amended the FCU Act's definition of “net worth” and “equity ratio.” Lastly, it directed the General Accountability Office (GAO) to conduct a study on NCUA's handling of the corporate credit union crisis.

The interim final rule conforms NCUA‟s § 701 to amendments made to the Federal Credit Union Act (FCU Act) by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to add remittance transfers, as now defined under the Electronic Fund Transfer Act (EFTA), as an example of money transfer instruments that federal credit unions may provide to persons within their field of membership.

The rule adds new content requirements to existing adverse action disclosures required by the Fair Credit Reporting Act (FCRA).

The rule adds new content requirements to existing risk-based pricing disclosures.

Generally, a FICU that is insolvent, in conservatorship, rated CAMEL 4 or 5 (CRIS 4 or 5 for corporate credit unions), or in an otherwise troubled condition would be prohibited from making golden parachute payments.

Under the final rule, member vote on conversions to mutual savings banks must be conducted by secret ballot and by an independent entity.

The final rule clarifies how to determine if a credit union qualifies for a low income designation under the definition of “low-income members.”

The final rule covers two matters: “reasonable and proportional” interchange fees; and network routing restrictions.

Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the net amount maintained in a noninterest-bearing transaction account at an insured credit union is fully insured by the NCUA.

The final rule would scale back or eliminate three current exemptions from the requirement that federally-insured credit unions use NCUA's official advertising statement or a specifically-permitted alternative.

The Treasury Department is seeking comment on the type of information the Consumer Financial Protection Bureau (CFPB) should request from consumers filing complaints.

The rule establishes new audit and reporting requirements for corporates, requires the disclosure of a corporate employee's compensation received from a corporate credit union service organization, requires that “no” votes and abstentions by corporate board members be recorded, and expands the role of corporates' supervisory committee.

FASB has issued Accounting Standards Update 2011-02 to provide guidance to credit unions and other financial institutions on the determination of whether a restructuring or modification of a debt constitutes a Troubled Debt Restructuring (TDR).

The rule clarifies the Board's previous rules regarding the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act).

These rules expand regulations of consumer protection to include credit transactions and leases of higher dollar amounts.