Examining latest policy impacts on credit union operations
New court decisions and policy changes impacting credit unions’ operations can lead to uncertainty in how to proceed. America’s Credit Unions’ Operations Committee met Tuesday to share information and get input from members on specific issues.
The U.S. Supreme Court ruled in June a president can fire federal agency officials at will, finding laws restricting the president's ability to remove agency heads at-will violate the separation of powers. The court also denied the administration's application to stay the lower court's decision to keep Federal Reserve Governor Lisa Cook on the board while the lower court hears the merits of the case, affirming a unique constitutional role of the Federal Reserve Board of Governors.
The Slaughter decision has implications beyond the Federal Trade Commission, including the likely end of the challenge from dismissed NCUA board members Todd Harper and Tanya Otsuka. A Compliance Blog post published following the decision examines the implications in detail.
The group addressed how the expanded ability of a president to fire agency heads could potentially impact compliance and other credit union operations, especially with regulatory swings under each new administration.
Updated guidance from Treasury’s Financial Crimes Enforcement Network (FinCEN) clarifying financial institution information sharing on suspected fraud under section 314(b) of the USA PATRIOT Act was also discussed. The guidance directly reflects several recommendations America’s Credit Unions made during its engagement with FinCEN and other agencies. A full breakdown is available the Compliance Blog.
Two recent Executive Orders address the risks of quantum computing on cryptographic security systems. Though these orders do not currently require any action from credit unions, some are educating themselves about the new kind of computing and the risks and opportunities that come with it. Another recent Compliance Blog entry examines definitions in quantum computing, what it means for financial institutions, and cybersecurity considerations.
America’s Credit Unions also encouraged credit unions and other stakeholders to share thoughts and submit comments on a recent CFPB request for information on integrated mortgage disclosures under the Truth in Lending Act and Real Estate Settlement Procedures Act (TRID), right of rescission, and reverse mortgage disclosures. Comments are due to the CFPB by Aug. 10.