SEATTLE — When complying with the Bank Secrecy Act and other laws, board members need to be sure that their credit union is being thorough, even if the process is burdensome and may seem excessive.
That's the advice NASCUS' Senior Vice President, Regulatory Affairs Brian Knight gave attendees at his group's Directors College today.
He said the BSA is "ultimately a safety and soundness concern" because if a credit union is involved in illegal activities, it could be subject to criminal or civil penalties. If the violations are too severe, it could result in the credit union being closed or having to be taken over by another credit union.
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Knight also said credit unions need to do a more effective job of monitoring contracts with third parties. He said all-too-often credit unions don't perform adequate due diligence on those contracts and ignore potential risks either to their financial health or their reputation.
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