Regulatory Compliance Update August 2018

Regulatory Compliance Update

By: Hickman Beckner, Senior Vice President

I have reviewed the Compliance News for July 2018. The IRS and Credit Union Administration (NCUA) have proposed new rules.

IRS – Published proposals to amend the rules for electronic filing of forms. Under the old rules electronic filing was required if 250 or more information returns were being filed. The new rules aggregate the filings and require electronic filing if a total of 250 or more forms are filed.

NCUA CDIA – Published proposals that would provide federal credit unions with an additional option for offering payday alternative loans. The new rules provide for additional options for loan amount, term, membership requirements and number of loans allowed. RETAIL© will support the proposed products.

Significant Dates:

July 1, 2018 – Effective date for Federal Reserve’s final changes to check collection and return procedures in Regulation CC. The new regulations encourage banks to clear and return checks electronically. This will make returned items (NSF checks) be returned sooner.

July 13, 2018 – Comments due on regulatory capital rules regarding the transition to Current Expected Credit Losses methodology for credit loss allowance.

July 30, 2018 – Comments due on IRS proposed changes on when information returns must be files electronically.

August 3, 2018 – Comments due on NCUA’s proposal to provide credit unions with additional options for payday alternative loans.

August 19, 2018– Published Compliance date for CFPB’s final rule for payday loans. This rule has been rescinded by Congress.

Emerging Legislation:

Credit Services Protection Act – Would exempt authorized Credit Services providers from the rules covering Credit Repair Organizations. This bill is aimed at credit repair scams.

Cooperate With Law Enforcement Agencies – Would limit the financial institutions liability for maintaining an account in compliance with a written request from a law enforcement agency. The bill would also address the conflict when complying with a law enforcement request to maintain an account and the requirement to close the account to comply with Anti-Money Laundering rules.

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