NCUA announces proposal making changes to record retention regulations

The seventh round of proposed regulatory changes as part of the NCUA’s Deregulation Project is now available. Announced Tuesday, the agency requests comments on one proposal related to record retention guidelines and catastrophic act preparedness guidelines in the Code of Federal Regulations, specifically 12 CFR 749.

This proposal is based on an advance notice of proposed rulemaking (ANPR) issued in 2024. America’s Credit Unions supported the ANPR and offered recommendations in comments filed in June 2024. The ANPR was heavily influenced by input from America's Credit Unions Small Credit Union Committee.

There are several changes outlined in the one proposal open for comment:  

• Removal of Appendix A; 
• Removal of Appendix B; 
• Defining “vital member services” and “vital records” to provide clarity; 
• Add the term “vital” to the heading of 12 CFR 749 so that it will read “Vital Records Preservation Program” and adding “vital” to 749.0 to further clarify the scope of part 749; 
• Clarification that an electronic format for a records preservation log may be used; 
• Permit destruction of older versions of records unless required by other law or regulation; and 
• Clarification on the NCUA’s expectation that, if a credit union contracts with a third-party service provider to maintain its vital records, the credit union must maintain effective oversight of the third-party service provider to ensure the credit union meets its obligations under part 749. 

Watch for an upcoming Regulatory Comment alert from America’s Credit Unions requesting member feedback on the proposal.