Assessing policy impact on credit union operations

Policy updates and proposals affecting credit unions were discussed in detail during Monday’s meeting of America’s Credit Unions Operations Committee.

The committee heard the latest on the Illinois Interchange Fee Prohibition Act (IFPA), including the legal challenge being remanded to the lower court due to the Office of the Comptroller of the Currency’s actions confirming federal preemption.

Despite these developments, the IFPA is still scheduled to take effect July 1. It would prohibit payment card issuers from collecting interchange on the tax/gratuity portion of transactions within the state.

America’s Credit Unions staff summarized and sought feedback from the group on several current proposals and final rules, including:

• The Financial Crimes Enforcement Network’s (FinCEN) proposed updates to anti-money laundering/countering financing of terrorism. Comments can be sent to America’s Credit Unions by May 25 and are due to FinCEN by June 9;
• Internal Revenue Service proposal on implementing the 1% remittance tax contained in H.R. 1. Comments are due to the Treasury by June 12.

Member credit unions also shared their thoughts on the impact of the CFPB’s final rule on small business lending data collection, the CFPB’s final rule amending the Equal Credit Opportunity Act  and the Department of Justice/Drug Enforcement Administration’s final rule rescheduling medical cannabis to Schedule III.

The committee meets every other month and focuses on identifying challenges and recommending both advocacy and compliance solutions for America’s Credit Unions to pursue.