Credit Unions Under Regulatory Pressure
In contrast to current meteorological trends, predictions for the coming regulatory climate, according to one consultant, show escalating temperatures with little chance of relief.
“Right now the regulatory climate is hot and it’s been that way for a while,” said Pam Perdue, chief compliance strategist for Continuity Control, a New Haven, Conn., financial consulting firm. “There’s a high pressure system over the Midwest across all agencies, and the storm, as it were, has stalled over the center of the country.”
On Aug. 29, North Dade Community Development Federal Credit Union, located in Miami Gardens, Fla., signed a consent agreement with NCUA, neither admitting nor denying charges of alleged money laundering. The action prohibits the $6 million credit union for having any further business with money service bureaus not part of its field of membership.
On Sept. 24, Bagumbayan Credit Union in Chicago signed a similar consent agreement with the regulator, who found significant issues with the credit union’s management. Specifically, the action barred unpaid and untrained individuals from acting on behalf of the tiny credit union, which has $84,000 in assets and one employee.