‘Compliance risk’ letter summarized

April 19, 2017 -- NCUA’s recent “Letter to Credit Unions” on compliance risk and risk-focused exams is outlined in a new NASCUS summary.

In outlining LTCU 17-CU-02, “Risk-Focused Examinations & Compliance Risk,” the NASCUS summary provides background behind the letter (referring to a 2002 LTCU), pointing out that this year’s letter provides examiners and credit unions information on updated risk indicators, including transformations in technology, business models, and members’ banking habits.

The summary also emphasizes that the updated compliance risk indicators framework has three broad categories: board and management oversight, compliance programs, and violations of law and consumer harm.

The letter’s provisions, the summary notes, took effect March 31. The summary is available to members only.

Summary: Letter to Credit Unions No.: 17-CU-02 Risk-Focused Examinations & Compliance Risk (members only)