Now that the Super Bowl is over (congrats, Broncos!), the normal flow of the universe is to direct our attention to spring training. And that got me thinking…spring training…training…compliance… compliance training! (Hey, it’s how a compliance geek’s mind works – you know what I’m talking about!)
Surprisingly, there aren’t very many training requirements specifically stated in law or regulation. However, even when training isn’t specifically required by statute or regulation, it’s still critical that your credit union provide job-appropriate training for staff and board members. While staff members are responsible for carrying out many of the day-to-day requirements contained in regulations, and board members have the broad responsibility for directing and controlling the affairs of the credit union, both groups have a shared responsibility to ensure that your credit union complies with all applicable laws and regulations. In order to do so, they need to know the “what” and “why” of those laws and regulation.
So, on to training that is specifically stated in law or regulation:
Bank Secrecy Act [Section 5318(h)] — Requires financial institutions to have an anti-money laundering program that includes an ongoing employee-training program.
NCUA Rules and Regulations §748.2(b) — Requires all federally-insured credit unions to have a Bank Secrecy Act program in writing, approved by the board of directors of the institution, and noted in the minutes. The program must provide training for appropriate personnel. However, while no interval is mandated for providing that training, from a practical standpoint (i.e., what examiners or auditors are looking for) you would be foolish to conduct training less than annually.
Regulation CC – Availability of Funds and Collection of Checks [229.19(f)] — Each financial institution must establish procedures to ensure that it complies with the requirements of the regulation, and must provide each employee who performs duties subject to the regulation with a statement of the procedures applicable to that employee. No interval is mandated for providing that training.
Regulation B Equal Credit Opportunity [Commentary §1002.15(c)(2)] —This section states that “identifying and then training and/or disciplining the employees involved” is an appropriate corrective action for problems discovered as a result of a self-test for compliance with this regulation.
Many violations of the Equal Credit Opportunity Act involve discrepancies between written policies and the actual practices of employees involved in the lending process. By keeping your staff trained on those requirements, many of these discrepancies can be avoided.
Safeguarding Member Information [Appendix A III(C)(2) to NCUA Part 748 Guidelines] — Federally-insured credit unions must train their staff to implement the information security system. Appendix A to Part 748 outlines the specific requirements for the development of the information security system.
“Financial Literacy” for Board Members of Federal Credit Unions [NCUA Rules and Regulations §701.4(b)(3)] —Board members of federal credit unions must have or gain an understanding of basic finance and accounting principles within six months after election or appointment, or by A director must have the ability to understand the balance sheet and income statement and ask, as appropriate, questions of management and auditors.
Again a reminder: don’t let the seeming paucity of requirements listed here fool you; even if there is not a specific training requirement contained in a regulation, you are required to comply with it. Therefore, someone—or several someones—need to be aware of what’s necessary to comply.