Compliance Update with Amy K
by Amy Kleinschmit
Chief Compliance Officer

BSA Training

On Friday, June 26, the Federal Financial Institutions Examination Council (FFIEC) will be hosting a webinar on the 2020 updates to the FFIEC’s BSA/AML Examination Manual. Specifically, staff will address the BSA/AML compliance program sections and examination procedures relating to: Scoping and planning, BSA/AML risk assessment, Assessing the BSA/AML compliance program, and Developing conclusions and finalizing the exam.

Register for this webinar here.

ICYMI – the NCUA also held a BSA webinar earlier this week that covered elements of a strong BSA/AML program. The NCUA also discussed the top 5 BSA violations that are cited by examiners. This webinar will be archived and available on-demand usually within 3 weeks of when it originally was held. Be sure to catch this very informative webinar if you missed it!


The NCUA recently issued Letter to Credit Unions 20-CU-19 – Additional Guidance Regarding Servicing Hemp-Related Businesses.  In August 2019, the NCUA issued NCUA Regulatory Alert, 19-RA-02, Serving Hemp Businesses, to provide interim guidance related to the passage of the Agriculture Improvement Act of 2018 (2018 Farm Bill). This letter’s purpose is to provide additional information for credit unions that are serving, or considering serving, legal hemp-related businesses, as they too have been affected by the COVID-19 pandemic.


The FBI recently issued a Public Service Announcement concerning the increased use of mobile banking apps that could lead to exploitation. This PSA can be found here.

As explained in the PSA, The FBI advises the public to be cautious when downloading apps on smartphones and tablets, as some could be concealing malicious intent. Cyber actors target banking information using banking trojans, which are malicious programs that disguise themselves as other apps, such as games or tools.

Scammers are also creating fraudulent apps designed to impersonate the real apps of major financial institutions, with the intent of tricking users into entering their login credentials.

The PSA includes a number of tips to protect against this scam such as only obtaining apps from trusted sources; using two-factor authentication; using strong passwords and good password security. The PSA expands on these with several Dos and Don’ts. Education is key – spread the word to help protect against scammers.

NCUA – PCA Letter to Credit Unions

In May, the NCUA approved an interim final rule that made temporary changes to Prompt Corrective Action aimed at providing some regulatory relief to credit unions during this COVID-19 pandemic. Recently the NCUA issued Letter to Credit Unions 20-CU-18 which can be found here.  This letter discusses the administrative order that was also issued by the NCUA that reduces the amount of earnings retention required for credit unions classified as adequately capitalized. Additionally, the letter discusses credit unions’ authority to submit a streamlined net worth restoration plan (NWRP) if their net worth ratio declined to undercapitalized predominantly due to temporary share growth during the COVID-19 pandemic.


The CFPB has issued guidance (found here) related to the TILA-RESPA Integrated Disclosure (TRID) Rule. This guidance includes a Factsheet on how to disclose title insurance on the Loan Estimate and Closing Disclosure, including when a negative owner’s title insurance cost disclosure is appropriate. The CFPB also updated the TRID FAQs to include guidance on the total of payments disclosure, using the optional signature line on the Loan Estimate and Closing Disclosure, and the requirement to include seller information on the consumer’s disclosures if providing separate Closing Disclosures.

CFPB – CAREs Act Credit Reporting FAQs

The CFPB has also issued guidance on consumer reporting during the COVID-19 pandemic. The FAQs address the credit reporting requirements of the CARES Act, including considerations for furnishers when reporting consumers as current as required by the CARES Act. The FAQs also clarify that reporting that a consumer is affected by a natural or declared disaster is not a substitute for complying with the CARES Act credit reporting requirements. In addition, the FAQs address the CFPB’s guidance that provides temporary and targeted flexibility in the event CRAs or the furnisher experience challenges as a result of the pandemic in investigating consumer disputes. All CRAs and furnishers remain responsible for conducting reasonable investigations of consumer disputes in a timely fashion. The Bureau’s statement makes clear that the Bureau expects CRAs and furnishers to make good faith efforts to investigate disputes as quickly as possible. Access the FAQs here.

InfoSight Highlights & Tips

Discussion Boards – Fraud Alerts and Check Fraud threads started. Scammers are out in force, taking advantage of all aspects of the Coronavirus pandemic. These discussion threads were started to share recent fraudulent activity credit unions are seeing.

Please feel free to share any local scams, counterfeit check issues, etc. your credit union has observed so others can be on the lookout too. However – please remember privacy rules and do not include any member/non-public information details

These discussion threads will also serve as a place to aggregate all these fraud alerts instead of having to maintain multiple email alerts. These discussion boards are only for Dakota Credit Unions.

Speaking of fraud – be sure to check out the related article in today’s Memo about money mules moving illicit proceeds from COVID-19 related crimes.

Tips - Here are a few of the many cool features InfoSight has that you may have missed! 

  • Clicking on the “gear” to the right of “Recently Updated” will display a list of all of the Channels in InfoSight.  If you want to be sure you’re seeing content updates for all the channels, check the box to the left of each Channel name.  Or, if you only want to see updates for some of the Channels, select just the ones you’d like to see.  Be sure to click “Save” when you’re done.
  • Selecting the "Checklists" option from the top blue bar on your Home Screen will display the MANY checklists on various topics that are available for your use. Check them out today!

Remember, CUAD members are always welcome to contact me, Amy Kleinschmit, with any compliance related questions. 


<< Go to Memo List