6 Questions to Ask Before Hiring a Compliance Officer

By Preston Packer |

Apr

10

Meeting the various compliance requirements and regulations can be a daunting task. Since the financial break down of 2007-09, the banking industry has become more heavily regulated, with new regulations being continually introduced or amended. One such example that is swiftly approaching in 2020 is the enactment of the new CECL accounting standard - Current Expected Credit Loss - a regulation requiring Credit Unions and banks alike to better manage the data of their members and their accounts. They will be required to have a system in place that tracks, analyzes and reports all of their member data in order to provide a better picture of an entity’s overall loan portfolio and potential risk of loss. While implementing this may be a big undertaking, like many other compliance regulations, ultimately the information this regulation will provide will better enable a credit union to understand certain member segments and its unique needs and can also influence marketing strategies.
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How Anti Money Laundering Rules Impacts Your Credit Union Members

By Preston Packer |

Dec

22

Recently announced Gold Globe nominee "Ozark" joins the ranks of "Breaking Bad," "The Big Short," "The Wolf of Wall Street," and many more crime TV and movies showing us that money-making can be a dirty business. The negative impacts on society as a whole are well documented. Increased crime drives up the cost of government due to the need for increased law enforcement. In socio-economic terms, money laundering transfers economic power from the market to criminals, and in extreme cases, can lead to a virtual take-over of legitimate government. In other words, the criminals gain such a foothold they influence, directly or indirectly, the political workings of the country. While on a large scale we all know money laundering is really bad, explaining to members why the credit union employs fraud detection and anti-money laundering tools may require some education on how AML impacts the every day, average credit union member.

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Why CECL Is only the Beginning in the Data Game

By Preston Packer |

Aug

29

The new Current Expected Credit Loss (CECL) accounting standard for banks and credit unions of all sizes is set to go into effect in 2020 for SEC registrants, and 2021 for all other banks and CUs. The new standards in credit union regulations are going to be both a blessing and a curse for many small to mid-sized credit unions. Now more than ever, CUs are sitting on mounds of data about their members and accounts, but many struggle not only finding the data from disparate sources, but also in making sense and gaining actionable insights from it. The reporting required to comply with the new standards may pose a challenge to CUs, but is also an opportunity to finally put that data to good use. Harnessing data is no longer an option for the C-Suite. These new requirements can be used as a spring board to develop a competitive advantage in credit union lending.

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Avoid These Costly Credit Union Compliance Mistakes

By Preston Packer |

Jun

23

Staying ahead of the ever-changing credit union compliance rules and regulations is no simple feat. For credit unions big and small, compliance is identified as a top critical issue they face every day. When compliance mistakes are made, the credit union takes a hit financially, and this hit can be detrimental especially for smaller credit unions. In order to keep the lights on at your credit union, here are 4 compliance mistakes you should avoid making.

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7 Simple Credit Union Compliance Tips

By Preston Packer |

Jun

21

Banking is a critical function in our world. Its success relies on consumer trust in financial organizations to safely and wisely protect and invest their cash. However, it's an industry built on the almighty dollar and naturally attracts a criminal element. So it needs to be safeguarded from those that intend harm. It needs a protector. Compliance is the watchdog of financial institutions and their members. Although burdensome at times, a thorough set of regulations can help prevent, identify, and catch threats to our investments. To be successful in this business, your CU needs to make compliance an absolute top priority. Here are seven simple ways to help you do just that.
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Don't Have the Resources for a Full-Time Compliance Officer?

By Preston Packer |

Mar

28

Running a successful credit union takes strategic budgeting to get the most out of every dollar. You need to offer best-in-class services without "breaking the bank." Success equally relies on smart investments in membership. A CU with a membership full of loan defaulters and money launderers is not going to be around very long. CUs need to screen their potential members and monitor transactions to stay aware and in front of potential red flag situations. This is a job for trained compliance and risk officers - staff members tasked with leading the due diligence on member history, account behavior, and transactions to detect and prevent potentially costly mistakes. But what if, like most small to mid-sized credit unions, you can't afford one?
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Five Fast Facts about AML

By Preston Packer |

Mar

24

Money laundering is dirty business. One that the U.S. government has been trying to clean up since 1970. Laundering is used to hide criminal and terrorist activities by inserting "dirty" money into the legitimate financial system, "washing" it around financial institutions through transfers, until it comes out looking "clean." These ill-gotten gains can impact the global economy as much as our own. Here are some fast facts about the Anti-Money Laundering rules to help your CU take on the seedy underbelly of criminal financing. 

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5 Freedom Fighting Facts About OFAC

By Preston Packer |

Mar

22

Think the Office of Foreign Assets Control (OFAC) isn't exciting to talk about? Think again! Here are 5 facts about OFAC that apply to credit unions and can add some zest to an otherwise heavy compliance requirement.

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7 Areas Credit Union Software Should Ease Risk Compliance

By Preston Packer |

Mar

15

Some risks are easy to recognize, and the decisions you need to make to mitigate these risks are obvious. Don't invest your life savings into lottery tickets. Don't drive a car at high speeds using a spare tire. Don't jump out of an airplane without a parachute. However, the risks credit unions face are much trickier to identify, analyze, and determine acceptable outcomes. While extremely difficult and multifaceted, taking steps in the right direction of calculating and mitigating risk can help prevent fraud and ensure the financial success of your credit union. Risk analysis should not be a time-consuming burden. The right credit union compliance tools in your arsenal can automate procedures. Here are seven areas where your credit union technology should facilitate the mitigation of risk. 

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