Credit Union Compliance – United States
The US Credit Union sector has reached a market valuation of almost $90 billion and experiencing steady growth. Due to its growth and enhanced popularity across all the US states, credit unions are subjected to more compliance obligations than ever.
Compliance Is Critical to Your Credit Union’s Success
Compliance management is one of the most important obligations of credit unions. Credit Union should strive to manage their compliance risks and comply with the regulations FFEO, FHA, Ginnie Mae, Fannie Mae, CFPB, and FTC as it positively affects their business strategy.
The Biggest Challenges to Credit Union Compliance
As the credit unions are making their way into the US economy and claiming a prominent place there, the regulatory and legal obligations are also increasing to ensure ultimate customer safety. The challenges to credit union compliance are also many. Following are some of the challenges that credit unions experience in recent times,
- Rapid regulatory changes
- Vulnerability to cyberattacks
- The issue in employee management
- Lack of operational resiliency
- Failure to risk assessment and mitigation planning
Consequences of Non-compliance in Credit Union
Monetary fines of as high as $1million or a substantial portion of their assets.
Voluntary or involuntary assets liquidation leads to the closure of the credit union.
Legal proceedings leading to suspension of operations.
Develop and Implement a Thriving a Credit Union Compliance Program
Creating a robust compliance program involves strong policies, a culture of honesty and integrity, digital record keeping, and detecting compliance issues early on.
Regulatory Change Management
Credit Unions must have a culture of closely tracking and monitoring all essential rules and regulations to avoid getting vulnerable to compliance errors. Stay prepared with all the current updates so that nothing gets missed out.
Tightened Processes, Controls, and Oversight
Setup or import frameworks and controls and identify tasks required for meeting standards. Create and assign controls, bring in oversight, manage approvals, and consolidate evidence for internal audits.
360-degree View of Compliance Activities
The credit unions should integrate all the compliance activities and stakeholders across the organization using a central solution to gain a 360-degree view of the compliance status.
Managing Risk Efficiently
Being a part of the finance sector, credit unions are also subject to many operational and external risks. Failing to track, assess and mitigate these risks can negatively impact the organization.
How VComply Can help in Establishing Effective Credit Union Compliance?
Credit unions need to keep up with the pace of regulatory changes and improve corporate governance. VComply’s Compliance and Risk Management solutions simplify credit unions’ compliance processes and boost productivity.
Automate Controls, Processes with Workflows
- Import or create applicable regulatory frameworks
- Automate controls to accommodate due diligence and support credit union AML and BSA requirements
- Support with workflows for operational task management.
- Bring in oversight, set compliance accountability to the individual level
Centralize Business Operations
- Bring all your teams and departments across geographical locations to the same virtual platform.
- Set up a centralized communication system through the platform.
- Set accountability to the individual level for better monitoring. Set accountability to the individual level for better monitoring
- Create a one-stop source of truth for all the business responsibilities, policies, and processes.
Regulations and Policy Management
- Establish the regulatory frameworks with pre-built controls or build your own controls
- Create policies and communicate them across the organization with ease.
- Track regulatory change, conduct the impact assessments
- Bridge the gap in policy comprehension with central library and policy notifications
Risk Assessment
- Maintain a risk register to identify potential risks
- Set your risk calculator for all the compliance responsibilities.
- Get automatic risk reports and identify the vulnerabilities.
- Risk identification and proactive risk management planning.
