New Mich. CUSO Helps Expose Regulatory Weak Spots
Finding the schedule to conduct a quarterly or annual risk management review proved to be a time crunch for CP Federal Credit Union.
The $323 million credit union in Jackson, Mich., knew that it was not alone in scheduling the reviews, and it was the impetus behind the debut of CU Rx, a risk management and compliance CUSO. The new entity was formed through CP FCU’s subsidiary, CP Financial Services LLC.
Among the regulatory topics the CUSO is asked to review the most are the Bank Secrecy Act, USA Patriot Act, automated clearing house audit, identity theft red flag rules, disaster recovery, vendor management, and third-party due diligence, said Bryanna Tapley, CU Rx vice president. Reviews of Regulation E and Section 748 of the NCUA’s rules and regulations are also common request, she added.
"Training credit union staff on regulations becomes particularly helpful for the long-term effectiveness of the CU Rx audit process. It’s not just a list of solutions and we’re gone," Tapley said. "CU Rx works through the client’s customized plan to see that risk, fraud and compliance weaknesses are resolved. It’s a proactive step they must take for the long-term health of their credit union."