The Bagumbayan Credit Union of Chicago has consented to a cease-and-desist order from the NCUA that reveals shortcomings in internal controls.

Chartered in 1964, Bagumbayan currently has just 43 members and total assets of $75,253.

Bagumbayan showed a net loss of $3,480 in June 2013, according to its latest financial performance report posted on the NCUA website. The credit union charged off 48.28% of its loans in the second quarter of 2013. It also reported 16.86% in delinquent loans during the same period, down from 33.17% in June 2012.

In 2012, Bagumbayan was issued three suspension orders by the Illinois Department of Financial & Professional Regulation.

“The credit union continues to operate in an unsafe and unsound manner,” said the third order dated Nov. 21, 2012.

The NCUA issued a press release on Tuesday outlining the actions required by its order, which include:

Cease and desist allowing unapproved officials to attend board meetings, serve on committees, or perform any and all managerial functions, operational functions, or both.
Refrain from implementing any aspects of a proposed business plan involving the establishment of new lines of business, including money remittance services.
Resolve all recordkeeping issues and Bank Secrecy Act violations detailed in exam reports.
Ensure secure storage and transmission of all member data consistent with the NCUA's Rules and Regulations for safeguarding member information.
Comply with all lawful directives of the state regulator, including all elements of the suspension order issued by that agency.

Instant Insights /

Tiny Chicago Credit Union Consents to NCUA Order

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