2025 Agency Resolutions
Happy new year! It’s that time of year again, a time of resolve. Millions of Americans have made or are making New Year’s resolutions. Much like the citizens it serves, the federal government also makes resolutions in the form of its semi-annual unified regulatory agenda. The fall unified agenda was released just last December, just in time for winter. The unified agenda contains the planned proposed and final regulations for the coming months and year.
Also like most Americans, the agency’s regulatory resolutions are sometimes more aspirational than realistic. However, many of the listed proposed and final rules will be issued in the coming year and this is a great look into what we can expect for the coming year. This blog is going to highlight a few items from the NCUA’s, the CFPB’s, and FinCEN’s agenda.
Succession Planning: The National Credit Union Administration (NCUA) Board released a final rule that requires credit union boards of directors to establish processes for succession planning for key positions.
Chartering and Field of Membership (FOM) Regulations: In 2023, the NCUA released a proposed rule that would update the chartering and field of membership rules, including changing the definition of secondary members to include every member of a decedent’s immediate family and household for a 6-month period following the decedent’s death. The final rule is expected sometime in 2025.
Simplification of Share Insurance Rules: On September 30, 2024, the NCUA published a final rule amending its regulations governing share insurance coverage. The final rule simplifies the share insurance regulations by establishing a “trust accounts” category that will provide for coverage of funds of both revocable trusts and irrevocable trusts deposited at federally insured credit unions (FICUs).
Fair Hiring in Banking: On September 19, 2024, the NCUA Board approved a final rule that codifies Section 205(d) of the Federal Credit Union Act and incorporates the NCUA’s Second Chance Interpretive Ruling and Policy Statement (IRPS 19-1) and the Fair Hiring in Banking Act (FHBA) into the agency’s regulations. This rule allows people with convictions for certain minor or older offenses to work in the credit union industry without applying for the NCUA Board’s approval.
Implementation of Financial Data Transparency Act: The NCUA, along with other agencies, jointly published a proposed rule to establish data standards to promote interoperability of financial regulatory data across these agencies. Final standards established pursuant to this rulemaking will later be adopted for certain collections of information in separate rulemakings by the agencies or through other actions taken by the agencies. The final rule is expected sometime in 2025.
Overdraft Lending: Very Large Financial Institutions: On December 12, 2024, the Consumer Financial Protection Bureau (CFPB) approved a final rule to amend Regulations E and Z to update regulatory exceptions for overdraft credit provided by financial institutions with more than $10 billion in assets, thereby subjecting extensions of overdraft credit to the consumer protection regulations CFPB required of similar extensions of credit, unless the overdraft fee is a “breakeven overdraft credit” or the fee is $5 or less. Please note, America’s Credit Unions has filed a lawsuit to block this rule.
Fees for Instantaneously Declined Transactions: On January 24, 2024, the CFPB released a proposed rule to prohibit covered financial institutions from charging fees, such as nonsufficient funds (NSF) fees, when consumers initiate payment transactions that are instantaneously declined. Under the rule, charging such fees would constitute an abusive practice under the Consumer Financial Protection Act’s prohibition on unfair, deceptive, or abusive acts or practices (UDAAP).
Anti-Money Laundering and Countering the Financing of Terrorism Programs: On September 3, 2024, FinCEN released a proposed rule to update financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs pursuant to the Anti-Money Laundering Act of 2020 (AML Act). The proposed rule would amend FinCEN’s regulations that prescribe the minimum requirements for AML/CFT programs for financial institutions (known as “program rules”). For credit unions, these are found at 31 CFR 1020.210.
Revisions to Customer Due Diligence Requirements for Financial Institutions: Pursuant to the Corporate Transparency Act, FinCEN is required to update it customer due diligence required for financial institutions to account for the new beneficial ownership information reporting rule. The proposed rule is scheduled to be published in April of 2025.
Credit unions should keep in mind that the Fall 2024 Agenda was published under the Biden administration. As such, it is possible that agency priorities will shift and we may see a different agenda when the Spring 2025 Agenda is issued.
