Compliance…as any financial institution knows, is key in maintaining safety and soundness with respect to its members,customers and ongoing viability. Lack of compliance can and will be the ruin of many.
- In an age of financial accountability, how sound are those policies and procedures with respect to compliance? The larger credit unions have the advantage over their smaller counterparts, since most have a compliance officer, training, and resources to ensure compliance.
- What about smaller credit unions? Where do they turn for guidance when they do not have a compliance officer on staff, but one who ceremonially wears that hat? Are these smaller credit unions spending the necessary dollars to send an employee to training? Are they providing the ongoing training that the staff needs to stay in compliance? My research shows that compliance is sorely lacking.
- With more than 50% of the credit unions in this country classified as small according to NCUA standards, it’s time they focus on compliance and make sure their policies and procedures are up to date, the employees are trained, and the designated compliance officer has gone to the Compliance school to be certified. Any corner cutting in this area in today’s financial storms will be ruinous to their outcome and their members.
- If you are a member of a small credit union you might want to ask question’s about their compliance. If I’m a board member then I might want to take a more proactive role to ensure the credit union is in total compliance. Lack of due diligence on their part, will be just as devastating.
Credit Union compliance (Risk) is the new four letter word. Is your credit union compliant?