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Let’s Get Serious About Compliance

Now that we’ve hit the 2019 Compliance Season, I like to think of 2018 as the proverbial “calm before the storm.” What last year may have seemed like a walk in the park with examiners could turn into a grudge match of significant proportions for credit unions unprepared for a year of more stringent rule enforcement.

I am exaggerating, of course, but by less of a margin than you may imagine. In the past few years, examiners have taken a “soft” approach in several areas of enforcement. In 2019, those approaches will harden in terms of higher expectations and more stringent requirements. One thing is certain – things are not going to get any easier for credit union compliance officers.

Coping with those changes is the subject of PolicyWorks’ new white paper The 2019 Compliance Season: Let’s Get Serious. We’ve tested the waters and we know the temperatures are rising. Helping you keep your head above those waters during an examination is the purpose of this publication.

Compliance covers many areas and operations within a credit union, but we’ve focused on NCUA’s “Big 6” for 2019: the Bank Secrecy Act (BSA), Concentrations of Credit, Consumer Compliance, Current Expected Credit Losses (CECL), Cybersecurity and Liquidity and Interest Rate Risk. Some of these areas are new, while others repeat from 2018. In all cases, however, the emphasis on toeing the line is stronger than it’s been in the past, and credit unions can’t afford to take things lightly this year.

The white paper also focuses on the importance of audits as a means to prepare for examinations. Whether those audits are conducted internally or by an outside trusted partner like PolicyWorks, care must be taken to treat any audit as serious business and be prepared for the audit team when it begins its task. In addition, the credit union should be prepared to address and correct any identified shortfalls as quickly as possible, an effort designed to put smiles on your examiners’ faces, metaphorically if not literally.

The best strategy for any credit union is to develop a unified Compliance Management System that has enough flexibility to be applied throughout the institution. PolicyWorks specializes in conducting audits, and we’d be happy to help you with your auditing needs. A thorough audit can help subsequent formal exams run more smoothly and with few to no surprises.

But first let me invite you to check out The 2019 Compliance Season: Let’s Get Serious. You can get your complimentary copy here: http://www.policyworksllccompliance.com/2019-compliance-season.

I know we’ll do better if we can face this year’s compliance challenges together.

Whitepaper: The 2019 Compliance Season

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