By The Way

The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training.  In addition, By the Way highlights the difference credit unions are making on a daily basis.

League News


CUNA Announcements

Education Opportunities

Featured Article

Credit Union News

Compliance Updates



Financial Empowerment Coalition

Treasurer Allison Ball Announces Financial Empowerment Coalition and Database

Kentucky State Treasurer Allison Ball held a press conference on Monday morning in the student-run branch of Class Act Federal Credit Union at Southern High School in Louisville, KY to announce the launch of the Financial Empowerment Coalition and the Financial Empowerment Database, a first-of-its-kind resource for Kentuckians.  

“As a former bankruptcy attorney, I understand the need of greater financial literacy in our state,” Treasurer Ball said. “This is an exciting day in Kentucky, as this coalition and database will help bring greater financial empowerment to Kentuckians. With the passage of HB 132 this session, we now have an opportunity to potentially change the lives of many, many people.”

House Bill 132, sponsored by Representative Jim Duplessis of Elizabethtown, makes financial literacy a graduation requirement for Kentucky public high schools.  The legislation allows local principals to determine how to meet that requirement; the Financial Empowerment Database offers resources for that very purpose. Providing this resource for educators was a deliberate part of the coalition's purpose, but, according to Treasurer Ball, the coalition and the database financially empower more than Kentucky's K-12 students and teachers.

"We have been developing this resource through conversations with community leaders for quite some time," Treasurer Ball said. "The coalition has been hard at work, developing solutions to Kentucky’s need for greater financial literacy and financial empowerment among many different communities. I am proud of this database and the work we have started."

The database is a product of the Treasurer’s work with leaders from numerous fields including educators, financial institutions, advocates for veterans and military personnel, and nonprofits. This online resource has been compiled as part of Treasurer Ball’s Financial Empowerment Coalition, which began meeting informally in 2016, the year she took office.  The coalition, which now boasts more than thirty organizations, has provided over 100 links of financial literacy resources. The database’s resources are divided into six target groups, or Cultivation Communities, which are also the focus of the Financial Empowerment Coalition’s work. These six communities include Aging Kentuckians, Emerging Adults, Kentuckians with Disabilities, Low-Income Families, Student Strategies, and Veterans and Military Personnel. 

"My Role as State Treasurer is to be a watchdog for Kentucky taxpayer dollars and to be a beacon of good government across the Commonwealth," Treasurer Ball said. "A practical way of doing that is by building a network of people and organizations committed to improving the financial livelihood of Kentuckians. HB 132 and the Financial Literacy Coalition and Database are the beginning fruits of that labor."

To learn more about the Financial Empowerment Coalition and Database, visit If you are interested in joining the Financial Empowerment Coalition, email This email address is being protected from spambots. You need JavaScript enabled to view it. .



America’s Credit Union Museum


Who We Are

America’s Credit Union Museum is the only organization in America with the mission of preserving credit union history. 

What We Do

The museum carries out this mission in three different ways: 

  • By acting as the keepers of credit union history
  • By celebrating the achievements of today’s movement
  • By inspiring and preparing credit union leaders of tomorrow 

Through a rich archive and research library, the museum not only houses the credit union movement of the past, it serves as a resource for credit union leaders of today to prepare to face the challenges of tomorrow. Through the museum’s state-of-the-art virtual meeting and conferencing system, credit union professionals can gather to remember their past and prepare for the future.

How You Can Help

Be a leader in your industry and support the museum through an organizational membership. Pledge your support for the museum’s mission and tell your members.   Link:



It’s Time for CUNA and Kentucky Award Nominations

CUNA Awards

We are happy to announce the CUNA awards websites are ready and open for your submissions.  Nominations are open from now until June 30.  

Administered by the Kentucky Credit Union League & Affiliates and CUNA, the Louise Herring, Dora Maxwell and Alphonse Desjardins awards programs are a wonderful way for credit unions to showcase all the great things they do for their members and their communities.

Below you'll find a brief description of each of the programs:

Louise Herring Award
The purpose of this award is to promote credit union philosophy by formally recognizing credit unions that demonstrate in an extraordinary way the practical application of that philosophy for their members.

Dora Maxwell Award
The purpose of this award is to promote social responsibility among credit unions by formally recognizing their community service achievements.

Alphonse Desjardins Award
Alphonse Desjardins was a credit union pioneer who was instrumental in forming the Canadian and U.S. credit union movements. Besides helping to found the first credit unions in Canada and the U.S., Desjardins pioneered youth savings clubs and in-school "banks", known as caisses scolaires. This award honors leadership within the credit union movement on behalf of youth and adult financial literacy.

In an effort to streamline the submission process for our member credit unions and to reduce financial and human resources spent on the submission process, CUNA and the Leagues have collaborated to produce one standardized format and online submission process for our member credit unions.

Submission Instructions
You will automatically establish an account when you create an application to submit your first project by clicking on the designated link below. You may save your work and return to the submission site as often as needed as long as you complete and submit all parts of the project submission by the due date of June 30, 2018. State winners will advance to national competition for judging.

KY Homepage

KY Louise Herring

KY Dora Maxwell

KY Desjardins

Kentucky Awards

Each year, your League hosts an Awards Banquet to recognize the achievements of individuals, credit unions, and chapters.  Your League sponsors several different awards programs to recognize these achievements.

Click HERE to view each award category.

The deadline to submit nominations for the Kentucky Awards is August 31, 2018.  

If you have any questions you can contact Vicki Hall at the League office at 502-855-8202 or This email address is being protected from spambots. You need JavaScript enabled to view it. .



Register Southeast Regional Directors’ Conference

the breakers home hero2

July 15-18 | The Breakers in Palm Beach 

1 S County Rd
Palm Beach, FL 33480

Attendee Registration: $879
Guest: $359


Save the date and make plans to join your peers from credit union boards across the Southeast for the 2018 Southeast Directors Conference, set for July 15 – 18, 2018. This conference features a full range of informative sessions on critical, timely issues, with first-rate speakers to address the economy, lending environment, and much more.

The Southeast Regional Directors Conference is designed for credit union directors and committee members. The conference location rotates among the ten Southeastern states, giving each state an opportunity to host their fellow credit union volunteers and showcase the best of what their state has to offer. This conference features a full range of informative educational sessions that provide a conduit for learning about critical issues important to today’s ever-changing financial industry.

The 2018 program will be hosted by the League of Southeastern Credit Unions and held at The Breakers in West Palm Beach, Florida. One of America’s legendary resort destinations, The Breakers is a modern-classic resort situated on 140 acres on the island of Palm Beach, Florida; conveniently located six miles from Palm Beach International Airport, 42 miles from Fort Lauderdale International Airport and 72 miles from Miami International Airport.  Both Interstate 95 and the Florida Turnpike provide easy access to South County Road), which leads to the entrance of The Breakers.


CUNA Financial Counseling Certification Program (FICEP)

Uncover New Possibilities

American consumers continue to need reliable financial advice from budgeting to navigating financial hardships. CUNA Financial Counseling Certification Program (FiCEP) provides credit union staff with the skills and knowledge required to guide members to financial security.

With certified financial counselors on staff, credit unions are better able to:

  • Help those experiencing financial difficulties
  • Demonstrate the credit union difference
  • Attract new members
  • Grow product and service revenue
  • Reduce delinquencies and charge-offs

Who should get certified?

FiCEP is designed for credit union staff who work in the financial counseling, collections and loan departments, or any other staff members who are committed to helping members gain control of their financial future.

Through FiCEP training you will discover the:

  • Three types of counseling options: remedial, preventive and productive
  • Myths and truths about money
  • First steps in counseling a member and analyzing their financial condition
  • Systematic plan for spending, bill-paying and saving that reduces debt
  • Importance of encouraging members to review their credit report on an annual basis
  • Ability to "enter the member's world" and connect the impact of their perceptions to their financial well-being
  • Six-step process can help your endeavors by building a strong counseling relationship

The Certified Credit Union Financial Counselor (CCUFC) designation is earned by passing two proctored exams. The designation requires recertification every three years. Learn more about proctored exams.

Click here for further information.



Mortgage Compliance School

June 6, 2018 | League Office

3615 Newburg Road
Louisville, KY 40218

Educational Investment: $239

(Includes continental breakfast, lunch, breaks and handouts.)

This training session lead by Jeremy Smith, Compliance Manager with PolicyWorks, will focus on the role regulations play within the lending process. 

Agenda Summary

  • The regulations that impact Fair Lending
  • The regulation lifecycle – How the regulations impact each section of the lending lifecycle
  • A refresher on the recent change to the Mortgage Servicing Rule
  • A recap on the changes to TRID that go into effect later this year
  • Lending compliance hot topics


About Our Presenter, Jeremy Smith

As Compliance Manager, Jeremy Smith oversees compliance services for PolicyWorks' partner Credit Union Leagues. Jeremy provides regulatory compliance guidance and training on current laws and regulations to credit union professionals.

Before coming to PolicyWorks, Jeremy worked in regulatory compliance developing policies, coordinating and communicating with state and federal examiners, developing and monitoring the company’s compliance risk assessment and developing a compliance management system.

Jeremy has an undergraduate degree in Business Administration from Drake University in Des Moines, Iowa.



2018 Volunteer Leaders Conference

2018-04-27 15-40-15

August 3-5, 2018 | French Lick Springs Hotel 

8670 IN-56
French Lick, IN 47432

As a volunteer, no one is better positioned to affect the future of your credit union than you are. You have accepted a major responsibility in guiding your credit union.  Ongoing education is important to reach the next level of challenge and opportunity.

Whether you're just getting started at your credit union, or you're a seasoned veteran, our conference offers valuable learning opportunities to help sharpen your skills to make your leadership role more effective.

The conference is designed to help you understand changes in the credit union industry and recognize challenges facing your credit union. We'll discuss the issues that are most important to you. In addition, you'll have plenty of opportunities to "network" with other volunteers from across the region, ask the burning questions, and discover how you can more effectively serve your credit union and its members.

find out more 




Your Brand is Not a Promotion

by Mark Arnold, On the Mark Strategies

One key challenge facing many credit union executive leaders is maintaining the momentum of their unique brand culture. A way to address this issue comes from the following key brand tenet: “your brand requires a long-term view and uncompromising values.”

Let’s focus on the “long-term view” portion of this edict. For many banks and credit unions still working on the old-school “marketing calendar flavor of the month” promotion-based culture this is a challenge.

Branding, when done well, blows away the traditional marketing calendar in favor of promoting your credit union brand culture over products and services (the logic here being that, if all staff does a terrific job living the brand, members and potential members will come to you for that outstanding retail experience regardless).

However, old habits die hard (trust me, after spending many years working inside credit unions in marketing roles, I understand this first-hand). When a credit union transitions from a promotion-based culture to a brand-based experience, it can feel a little scary. After all, your marketing staff may have run essentially the same calendar and/or promotions for many years and with familiarity comes comfort. Branding, with all its immense potential for deeper and more meaningful relationships, is a change from the old school and requires adaptability.

A brand culture is not a promotion. You do not start branding one day and then finish it a month or six weeks later. Your credit union’s brand, once clearly defined, trained to staff and launched to the public, is evergreen. As the brand tenet above indicates, your credit union brand requires a long-term view. That means you stick to the brand, including every single granular detail of it, as a team. The brand is also unlike a promotion in that it is not meant as a “shot in the arm” to the bottom line like a promotion is typically viewed. Your brand is a long-term investment in the strength of your credit union culture and its ability to weather the storms of business change such as new products and services, new competitors, new technology, etc. Your brand, with a degree of adaptability, will weather these changes whereas a promotion is simply meant for a specific time or season.

Not every day in branding is easy. You’ll likely have to make tough decisions and enforce brand policies and guidelines that may not prove popular with every person and/or department. But stick to it you must. Staff must also fully understand (and this is best expressed in initial and ongoing brand training) that your credit union brand culture isn’t going away and isn’t just another “bee in the bonnet” the leadership team is currently hot-to-trot about. Of course, if your credit union is just rolling out a new brand culture, you cannot expect all staff to live it perfectly immediately. You must give them time and training in order to get online with the new brand (and express the opportunity for this learning curve during your initial all-staff brand training).

Your brand is not a promotion. It’s not a jug of milk with an expiration date or coupon good only until the end of the month. Your brand is a promise, your brand is a culture and your brand is an experience that staff and members must live every day, in every way. If you treat your brand like a long-term relationship instead of a weekend fling, it has a much better chance of taking root and flourishing in the hearts and minds of your members.

Mark Arnold is an acclaimed speaker, brand expert and strategic planner helping businesses such as credit unions and banks achieve their goals with strategic marketing insights and energized training.  Mark will be presenting at the 2018 Management Conference in French Lick Resort on May 15th




ACU On the Go Opens at Ashland Town Center

Ashland Credit Union is excited to announce the opening of our ACU On The Go office at the Ashland Town Center mall. The new office is aimed at taking the ACU experience outside the walls of the traditional branch and meeting our members where they are.

"Banking continues to evolve." says Candace Stanley, ACU's Business Development Analyst. "But we also know that the banking experience can't simply be technology driven. Members still look for a personalized experience where they can sit down and have a face-to-face talk with a real person about their finances. It's not always convenient to make it to a branch, so we wanted to bring the branch to a place where our members already spend their time. Ashland Town Center gave us a great location and opportunity to accomplish this."

acu-on-the-goLocation, Services, & Hours
The mall location where the new office is located is seasonally available space, so ACU has arranged to occupy the space from April 25, 2018 through the end of August, when the location will be returned to the mall for seasonal retailers. Hours of operation will be Tuesday thru Saturday, 10:00 AM to 6:00 PM. It will be the only Ashland-area location to offer Saturday hours. Visitors to the On The Go office can:

- Learn about ACU membership

- Open new accounts and apply for loans

- Make cashless transactions on existing accounts

- Get advice and analysis of their current credit score

- Attend periodic financial education seminars

Visitors should note that due to the site being only a temporary seasonal location, cash services will not be available. However, small On The Go loans done in the office may be done directly to a Visa gift card for immediate availability.

"We have been serving our community for years," says Larry Lucas, ACU President/CEO. "We are excited to reach out to our existing members in a new and innovative way where they already are so that they don't have to go out of their way to find us."

The new office can be found at the Ashland Town Center Mall, 500 Winchester Ave, Ashland, KY 41101 between Buckle and FYE. 



MCCU Interns Learn About More than Just Money

Whether you’re starting a new career, bettering your current job, or picking up the pieces after getting laid off, Ashland Community and Technical College (ACTC), along with Members Choice Credit Union have opened the doors to these opportunities for three interns.

For the first time, Members Choice Credit Union has partnered with ACTC to create an Internship program to help students perfect their resumes, get hands-on experience and learn the ins and outs of financial institutions.

“This program has been in the works for a while,” Governance, Risk & Compliance Manager David Deborde said.  “Not a lot of people know what we do or how to do it.”

Currently, the internship program has three mentees learning the different aspects of the job, throughout the curriculum they have worked on marketing projects, pitch projects and will also end the program by giving the pitch of their lives hoping to convince the Members Choice Credit Union board to hire them.

“In their final projects, they are creating a position that is needed and could potentially fill,” Deborde said.

For intern Ben Hawking, it’s a second chance.  Hawking was laid off from AK Steel and returned to school to continue to provide for his family.

“This has been a great experience,” Hawking said.  “I have always had an interest in finances but we have learned so much more than that.”  Hawking shared the internship has taught him different marketing strategies, and how to sell himself to future employers.

“One project I created a flyer that was shared throughout the company and its branches,” Hawking said.

Intern Blake Justice has also been hard at work with projects soaking in every moment, so hopefully one day he can start his own business.  “I have worked in retail a little, and it has always been a dream of mine to open my own business,” Justice said.  “The great thing about this internship is it doesn’t just focus on financial information but also about improving yourself.”

Justice referred to several books that were purchased for them through the program that teaches, how to sell themselves to future employers, have the best resumes and finding the perfect job.  “Everyone here has been great; it’s like a real family here,” Justice said.

Intern Hobert Waugh also has dreams of securing a brighter future.  Waugh has worked several jobs throughout the region but is hoping after the completion of the internship he will be able to find a more permanent position.  “One of the biggest challenges for me was the social aspect,” Waugh said.  “This internship has taught me now to be more social, and I feel like I can talk to anyone.”

While each intern has separate goals of what they want to do after they graduate, one thing they all can agree on is the internship program has helped them better themselves.  “All three of the will be great assets to the community no matter where they go,” Members Choice Credit Union President, Cheryl Deborde, said.  “We look forward to seeing great things for them.”

Plans are already in the works to continue the internship program with ACTC for the upcoming semesters.

“I would recommend this internship to everyone,” Waugh said.  “It has been a great experience and taught me so much.”

Watch the video



Park Community Credit Union Provides Transportation to a Lexington Non-Profit

On March 14th at 10:30 am, Park Community Credit Union presented the Refuge for Women with a Chrysler minivan.  The presentation took place at Park Community’s Hamburg branch located at 2217 War Admiral Way in Lexington, KY.  

PCCU-TRANSPORTATIONRefuge for Women is a non-profit that provides a safe place for women who have escaped human trafficking or sexual exploitation. They provide counseling, training, and job placement assistance.  Their program is conducted in 3 phases: the first is to stabilize and provide safety to rebuild trust to help with healing, the second is to equip the women with tools, training, and job placement assistance, and the third is an optional program which provides reduced living expenses and additional life skills classes. The van will help relieve some of the organization’s transportation challenges and help further their cause.

Park Community Credit Union has made it a mission to help the communities we serve. The concept to provide vehicles was a suggestion from Park Community’s Executive Vice President, Dave Shadburne.  He stated, “This is just one more way that we can help the community, in addition to helping another worthy organization.” Park Community will be co-branding future vehicles with the Park Community logo and the phrase, “Community Passion in Motion.” The phrase captures the credit union’s desire to help the community and to be a driving force for positive change. It also ties back to the industry-wide credit union motto of “People Helping People.”

Not only has Park Community donated over $288,000 for the benefit of multiple charities over the last four years, Park Community offers three co-branded debit cards which benefit Kosair Charities, the Kentucky Humane Society, and the Lexington Humane Society.

The headquarters for Refuge for Women is located on Waller Avenue, in Lexington, KY.  




Park Community Credit Union Lights Up Headquarters in Blue

To help create awareness for Autism, Park Community Credit Union bathed their headquarters in blue lights during the week of March 30th - April 6th.  April is Autism Awareness Month, and Park wanted to show support for those on the Autistic Spectrum and - for FEAT (Families for Effective Autism Treatment) of Louisville.

Park Community has achieved the ‘Level 2’ Autism Friendly certification with FEAT of Louisville.  Park Community Credit Union is the only financial institution in the state to attain this level of certification. All of the Park Community Credit Union locations have been equipped with a sensory box to be used when individuals with Autism come to the branches.  The sensory box contains items to help calm individuals with Autism when they are in public facilities and make them feel more comfortable. 

In November, Park became the first financial institution to receive their ‘Level 1’ certification.  To achieve this certification, all of the employees viewed an informational video then answered a series of questions based on the video.  This ensured that the credit union employees were given the tools necessary to recognize the signs and actions of someone with autism and appropriate ways to respond. 

Park Community plans to achieve the ‘Level 3’ designation before the end of the year. At that time, Park Community will be in a position to hire individuals who are on the autism spectrum.

Park Community strives to improve the lives of their members, their community, and their employees.  This is just one more way the credit union is working to help improve our community.



Park Community Credit Union Provides Transportation to Habitat for Humanity

Park Community Credit Union presented Habitat for Humanity of Madison and Clark Counties with a 2017 Chevrolet truck.  Russ Barclay, the Executive Director for the organization, was at the Richmond branch to receive the vehicle.  

Habitat for Humanity of Madison and Clark Counties work in partnership with local families to build and preserve simple, decent, affordable housing.  Since 1992 local volunteers and donors have partnered with 131 families to build or improve the place that they call home. The Park Community Credit Union truck donation will allow Habitat to transport building materials and tools to the construction sites for future homes in our communities.  Together, we will build strength, stability, and self-reliance through shelter. 

Park Jim David Russ

Pictured from left to right
Jim Spradlin, President/CEO Park Community Credit Union, Russ Barclay, Executive Director Habitat for Humanity Madison and Clark Counties,
and Dave Shadburne, Executive Vice President Park Community Credit Union

Park Community Credit Union has made it a mission expanded to help the communities we serve.  This vehicle will be co-branded.  It will include the Habitat for Humanity logo, Park Community Credit Union logo and the phrase, “Community Passion in Motion.” This phrase captures the credit union’s desire to help the community and to be a driving force for positive change. It also ties back to the industry-wide credit union motto of “People Helping People.”

Park Community has donated over $288,000 for the benefit of multiple charities over the last four years. In March, Park Community provided the first vehicle, a Dodge Caravan, to Refuge for Women in Lexington. In addition, Park Community offers three co-branded debit cards which benefit Kosair Charities, the Kentucky Humane Society, and the Lexington Humane Society.

The headquarters for Habitat for Humanity in Madison and Clark Counties is located at 1417 E. Main Street in Richmond, KY. You can also donate or visit their ReStore location at 830 Eastern Bypass in Richmond, KY.   



DC District Court Vacates a Portion of NCUA's 2016 FOM Rule

In October 2016, the NCUA issued a final rule making several changes to its Chartering and Field of Membership Manual (the "FOM rule"). For a refresher on these changes, please see the Final Rule Analysis prepared in November 2016 by CUNA's Compliance Team, available here

In December 2016, the American Bankers Association ("ABA") filed suit against the NCUA challenging four definitional decisions made as part of the FOM rule. On March 29, 2018, the United States District Court for the District of Columbia vacated and set aside two provisions of the FOM rule. In its order, the Court stated that in crafting these two provisions, the NCUA had exceeded its statutory authority and thus violated the Administrative Procedures Act. 

Combined Statistical Area ("CSA")
As part of the FOM rule, NCUA had identified a third presumptive community for community charters. Under the rule, a CSA which combines two or more adjacent Core Based Statistical Areas with substantial employment interchange was considered a presumptive Well-Defined Local Community so long as it had a population of 2.5 million people or less. 

This provision was vacated and set aside. 

Rural District Definition
Under the NCUA's FOM rule, a rural district may qualify for a community charter if it satisfies the following two-part test:

  • The rural district's population is 1 million people or less; and
  • At least 50% of the rural district's population reside in geographic units designated as rural or the rural district's population density does not exceed 100 persons per square mile.

The final rule had increased the population cap under the first prong of the test from 250,000 people to 1 million people. The district court vacated and set aside this provision. 

For more information on the Court's decision, please visit CUNA's Removing Barriers Blog. In addition, a copy of the order is available here and a copy of the accompanying memorandum opinion is available here.



Nationwide Credit Bureaus to Remove All Tax Liens from Credit Reports

In July 2017, the three nationwide credit reporting companies (Equifax, Experian and TransUnion) began enforcing stricter standards on the public records they collect as part of the National Consumer Assistance Plan ("NCAP"). See our July 2017 blog post for more information.

The NCAP was launched by the credit bureaus to "make credit reports more accurate and make it easier for consumers to correct any errors on their credit reports." The plan stemmed from a 2015 settlement between the credit bureaus and over 30 state attorneys general." Part of the settlement required the credit bureaus to create minimum standards for personally identifiable information and reporting frequency for civil public records, including bankruptcies, civil judgments, and tax liens.

The credit bureaus removed all civil judgments and the majority of tax liens from their consumer credit reporting databases in July 2017. The credit bureaus will now complete the process and remove all remaining tax liens from their consumer credit reporting databases in order to ensure compliance with the NCAP standards. According to recent reports of client communications from the credit bureaus, all remaining tax liens were removed from consumer credit reports the week of April 16, 2018. Bankruptcy public record data will continue to be reported.

In February 2018, the CFPB's quarterly report of consumer credit trends explored how the removal of public record data affected consumers' credit records and credit scores.  View the report here. The agency's blog post on the report provides a snapshot of the findings, available here.



FinCEN Posts New CDD FAQs

The Financial Crimes Enforcement Network (FinCEN) has issued a new set of Frequently Asked Questions (FAQs) to assist financial institutions in complying with the agency's Customer Due Diligence (CDD) regulation. The new FAQs are available here. The rule goes into effect on May 11, 2018.

Of the 37 questions and answers, credit unions will be particularly interested in Q&A #12, which covers the frequently asked question regarding whether renewable share certificates/CDs constitute new accounts under the rule:

Question 12: Collection of beneficial ownership information: Product or service renewals

Are financial institutions required to have their legal entity customers certify the beneficial owners for existing customers during the course of a financial product renewal (e.g., a loan renewal or certificate of deposit)?

Answer: Yes. Consistent with the definition of "account" in the CIP rules and subsequent interagency guidance, each time a loan is renewed or a certificate of deposit is rolled over, the bank establishes another formal banking relationship and a new account is established. Covered financial institutions are required to obtain information on the beneficial owners of a legal entity that opens a new account, meaning (in the case of a bank) for each new formal banking relationship established, even if the legal entity is an existing customer. Click here to read more on pages 9-10 of the document.

FinCEN's previously published 2016 FAQs (FIN-2016-G003) are available here. FinCEN may issue additional FAQs, guidance, or grant exceptive relief as appropriate. 



Upcoming Regulation Z Webinar Series - A Deep Dive Into a Complex Regulation

The Truth in Lending Act ("TILA"), enacted in 1968, is designed to promote the informed use of consumer credit by requiring certain disclosures about its terms. In addition, TILA aims to protect consumers from inaccurate and unfair billing and credit card practices. 

The requirements of TILA are enforced through the CFPB's Regulation Z. Amended a countless number of times since its inception, Regulation Z currently weighs in at an astounding 605 pages in the Federal Reserve's Regulatory Subscription Service.   

In response to the demand of both experienced compliance professionals and lenders looking for an in-depth review of the regulation's requirements, CUNA will be hosting a Regulation Z webinar series in May and June. The series is designed to walk participants through the various complexities of the regulation and its 60+ sections and appendices. Please join CUNA Senior Federal Compliance Counsels Mike McLain, Whitney Nicholas and Michael Christians for the following sessions:

Thursday, May 3rd @ 1:00pm CST / Open-End Credit (Mike McLain) 
Thursday, May 10th @ 1:00pm CST / Closed-End Credit (Whitney Nicholas)
Thursday, May 17th @ 1:00pm CST / Real Estate Transactions: Part One (Michael Christians)
Thursday, May 24th @ 1:00pm CST / Real Estate Transactions: Part Two (Michael Christians) 
Thursday, May 31st @ 1:00pm CST / Requirements for Credit Card Accounts (Mike McLain)
Thursday, June 7th @ 1:00pm CST / Marketing and Advertising Provisions (Whitney Nicholas) 

Participants may purchase the sessions individually or the entire 6-part series. The series is available to CUNA Training Bundle users at no additional cost. 

Additional information about the series and registration is available here.



FFIEC Issues Joint Statement on Cyber Insurance and its Potential Role in Risk Management Programs

The Federal Financial Institutions Examination Council (FFIEC) members today issued a joint statement to describe matters that financial institutions should consider if they are determining whether to use cyber insurance as a component of their risk management programs.

The FFIEC members do not require financial institutions to maintain cyber insurance. The evolving cyber insurance market and the shifting cyber threat landscape may, however, prompt financial institutions to consider whether cyber insurance would be an effective part of their overall risk management programs. 

The joint statement notes that cyber attacks are increasing in volume and sophistication and that traditional general liability insurance policies may not provide effective coverage for all potential exposures caused by cyber events. Cyber insurance could offset financial losses from a variety of exposures—including data breaches resulting in the loss of confidential information—that may not be covered by more traditional insurance policies. Financial institution management should assess the scope of coverage of current insurance and consider how cyber insurance may fit into the institution’s overall risk management framework.

As with any insurance coverage, cyber insurance does not diminish the importance of a sound control environment. Rather, cyber insurance may be a component of a broader risk management strategy that includes identifying, measuring, mitigating, and monitoring cyber risk exposure.

Financial institutions may find additional information on risk management and cybersecurity risk management on the FFIEC’s website at

Statement: Joint Statement on Cyber Insurance and Its Potential Role in Risk Management Programs

Source: NCUA




FinCEN Offers its Sample Beneficial Owner Certification Form in MS Word and a Fillable PDF

FinCEN's long-awaited electronically available CDD Beneficial Owner Certification Form is here!  I have heard from many of you over the past several months in regard to the difficulty of using FinCEN's Beneficial Owner Certification Form located in Appendix A to the rule due to it being inconveniently divided over two pages of the rule.  

As promised, the agency now has the form available electronically.  According to FinCEN, its "CDD Certification Form is an optional form providing a convenient way for institutions to obtain and record information required by the CDD rule.  The MS Word version should be printed out and completed. The PDF version may be completed (filled-in) on a computer then printed out.  

Make a copy of the certification form and maintain the entity's financial institution where the account is established.


For more information review FinCEN's April 3, 2018 CDD FAQs.




New Tool Will Enhance NCUA’s Cybersecurity Assessments at Credit Unions

This year, the NCUA will begin using a new tool to help our examiners assess a credit union’s level of cybersecurity preparedness. Called the Automated Cybersecurity Examination Tool, it provides us with a repeatable, measurable and transparent process that improves and standardizes our supervision related to cybersecurity in all federally insured credit unions.

Developed in 2017, the Automated Cybersecurity Examination Tool mirrors the FFIEC’s Cybersecurity Assessment Tool developed for voluntary use by banks and credit unions. Just like the FFIEC’s Tool, our Automated Cybersecurity Examination Tool consists of two parts: the Inherent Risk Profile and the Cybersecurity Maturity level.

The Inherent Risk Profile in the tool helps determine a credit union’s exposure to risk by identifying the type, volume, and complexity of the institution’s operations. The Cybersecurity Maturity portion of the tool is designed to help us measure a credit union’s level of risk and corresponding controls. The levels range from baseline to innovative.

The Cybersecurity Maturity assessment includes statements to determine whether an institution’s behaviors, practices, and processes can support cybersecurity preparedness within the following five domains:

  • Cyber-risk management and oversight
  • Threat intelligence and collaboration
  • Cybersecurity controls
  • External dependency management
  • Cyber-incident management and resilience

Each of these domains includes assessment factors and contributing components. Within each component, declarative statements describe activities supporting the assessment factor at each maturity level.

Additionally, the Automated Cybersecurity Examination Tool incorporates appropriate cybersecurity standards and practices established for financial institutions. The tool maps each of its declarative statements to these best practices found in the FFIEC’s Information Technology Examination Handbook, regulatory guidance, and leading industry standards like the National Institute of Standards and Technology’s Cybersecurity Framework. The tool also provides our examiners a plain-language explanation and references for each of the declarative statements included in the assessment.

In 2018, the NCUA will review credit unions with $1 billion or more in assets using the Automated Cybersecurity Examination Tool, while we continue to refine the tool further to ensure it scales properly for smaller, less complex credit unions. We will use the assessment over the next few years to benchmark the industry’s preparedness levels. These benchmarks will be used to start a dialog on how we all can improve the credit union system’s cybersecurity preparedness levels.

Using the new Automated Cybersecurity Examination Tool ensures we are consistent in our approach and we can scale our expectations properly to the size, complexity and risk exposure of each credit union. The tool will also provide valuable insights that will help us focus our supervision efforts on areas that are the most important for the credit union system. As the tool’s implementation evolves over the course of the year, we will be sure to keep stakeholders informed.

For more information, visit our Cybersecurity Resources website.


Compliance: New Mortgage Servicing Rules Now Effective

Thursday, April 19 marked the effective date of the second round of amendments to the Consumer Financial Protection Bureau’s (CFPB) mortgage servicing rules, finalized August 2016. This means confirmed successors in interest are now entitled to the same servicing protections available to borrowers under both Regulation Z and Regulation X.

It also means that credit unions are now required to provide modified periodic statements on residential mortgage loans to borrowers who have filed for bankruptcy unless an exemption applies.

The rule provides that the credit union must provide a modified periodic statement in connection with a closed-end consumer credit transaction secured by a dwelling to a borrower who has filed for bankruptcy unless one of the following exemptions applies:

  • The borrower requests in writing that the credit union cease providing the periodic statement;
  • The bankruptcy plan provides that the borrower will surrender the dwelling; or
  • A court enters an order providing for avoidance of the lien securing the mortgage loan.

If an exemption does not apply, the credit union must continue to provide a modified periodic statement.

The modified periodic statement:

  • May omit certain information as identified in the rule; and
  • Must include a statement identifying the borrower’s status as a debtor in bankruptcy and that the periodic statement is for informational purposes only.

CUNA compliance staff has received numerous questions about how this change affects borrowers who filed for bankruptcy before the April 19 effective date.

The answer can be found in an FAQ document available from the CFPB on its mortgage servicing rules implementation page.

On page 7 of the document the CFPB states that the credit union must send a modified periodic statement to a borrower in bankruptcy unless, as of April 19, 2018, any exemption applies.

It goes on to say that “these new requirements and exemption provisions apply to a mortgage loan as of April 19, 2018, irrespective of whether the borrower became a debtor in bankruptcy before or after April 19, 2018.”

Remember that small servicers are exempt from the periodic statement requirement altogether, and thus also exempt from this change. A small servicer is defined as a credit union, who together with any affiliates, services 5,000 or fewer mortgage loans.



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Kentucky Credit Union League
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