One of the benefits of your credit union's League membership is access to InfoSight--a valuable online compliance resource. This newsletter contains some timely highlights, and access to InfoSight is a benefit of League affiliation, so it is password-protected. If you have a specific compliance issue or concern, contact our Consulting Department at (800) 285-5300. Replies to this email will be directed to SVP, League Services & Regulatory Analysis Joe Guilfoy .
InfoSight Highlight
Record Retention
The purpose of record retention requirements and a record retention program is to provide a comprehensive and cost-effective way to promote effective member service by providing credit unions access to important member information. It also provides credit unions and their members protection in the event of damage or disaster, and ensures compliance with claims, litigation and/or IRS demands.
State laws provide procedural guidelines, and federal laws mandate record retention time periods. Although neither the National Credit Union Administration (NCUA) nor the Indiana Department of Financial Institutions (DFI) regulate record retention, both outline provisions related to the practice of retaining records.

What are the NCUA Record Retention Requirements?
Part 749 of the NCUA Rules and Regulations requires all federally insured credit unions to maintain a records preservation program to identify, store and be able to reconstruct vital records in the event that the credit union's records are damaged or destroyed and includes recommendations for restoring vital member services. The regulation provides flexibility as far as the format credit unions may use for maintaining writings, records or information required by other NCUA regulations. Part 749 also provides an appendix, which provides guidance on the appropriate length of time credit unions should retain various types of operational records. For further details on NCUA record retention guidance, please see the Detailed Analysis of the Records Retention section.

How do these requirements affect credit unions?
Federally insured credit unions are required by law to maintain such programs. However, even without regulatory requirement, a records retention program would be imperative. Credit unions have a responsibility to be able to reconstruct their records in order to protect their assets as well as their member's funds in the event of a disaster such as fire, flood, storm or malicious destruction. This is only prudent and sound business practice.

What must credit unions do to comply?
A federally insured credit union is required to establish and maintain a vital records preservation program. The program must be in place, not later than 6 months, after the credit union is insured. The vital records preservation program must:

  • Be in writing and contain procedures for storing duplicate vital records at a vital records center;
  • Designate the staff member responsible for carrying out the vital records duties;
  • Provide a schedule for the storage and destruction of records; and
  • Contain a records preservation log detailing for each record stored, its name, storage location, storage date, and name of the person sending the record for storage.

Click here to view the topic , and to ensure your credit union is in compliance.
Compliance Videos
Compliance Outlook for Q4 2017
In this video, Glory LeDu provides a brief summary of the key changes of the new HMDA rules that became effective January 1, 2018. You won’t want to miss this important overview!

Just a reminder that Compliance videos since 2016 can be found on YouTube at the Compliance Connection channel , where they are generally updated quarterly.
Compliance News
NCUA Adjusted Civil Monetary Penalty
Effective January 15, 2018, the NCUA Board (Board) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. This action, including the amount of the adjustments, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.   Click here to view the updated chart
 
Source: NCUA
New Withholding Tables Issued by IRS
The  Department of the Treasury has announced   that the IRS has sent   new tax withholding guidance   to employers to implement tax cuts and other provisions of the Tax Cuts and Jobs Act. Treasury encouraged employers to start using the new withholding tables as soon as possible, but no later than February 15, 2018. The IRS intends to release a new withholding calculator by the end of February, for employees to use to update their withholding information as needed. The IRS said the tables are designed to produce the correct amount of tax withholding, and to avoid over- and under-withholding of tax as much as possible.
 
Source: Department of Treasury
Weekly Regulatory Advocacy Report
The Weekly Advocacy Report provides links to information about a number of recent League, CUNA and NCUA regulatory and advocacy activities. 
   
Upcoming Education Sessions
The League has several education sessions coming up. Several focus on compliance issues. They are listed in calendar format on the League website.
   
League Consulting Department Staff
(800) 285-5300
Compliance Calendar
January
  • January 28, 2018: 5300 Call Report Due to NCUA
February
  • February 19, 2018: President's Day - Federal Holiday
March
  • March 16, 2018: Same-day ACH (NACHA) – Phase 3 of the implementation period for the rule.
April
  • April 1, 2018: Prepaid Accounts under the Electronic Fund Transfer Act/Regulation E and the Truth In Lending Act/Regulation Z (Date Extended)
  • April 29, 2018: 5300 Call Report Due to NCUA
May
  • May 11, 2018: Customer Due Diligence – CDD (FinCEN) – Effective date
  • May 28, 2018: Memorial Day - Federal Holiday
July
  • July 4, 2018: Independence Day - Federal Holiday
  • July 29, 2018: 5300 Call Report Due to NCUA
September
  • September 3, 2018: Labor Day - Federal Holiday
October
  • October 8, 2018: Columbus Day - Federal Holiday
November
  • November 12, 2018: Veterans Day (observed) - Federal Holiday
There's more available from InfoSight
InfoSight content is available from the League's website . Visit anytime to get sample policies, links to federal regulations and summaries of issues that are hot-topics at your credit union. 
 
Access to InfoSight is a benefit of League affiliation, so it is password-protected. If you don't have a password or if you have forgotten yours, click on the tan "Log In" button in upper right corner of the site; a box will open. Click on the blue wording to get your password.