New Videos Added to AVCU InfoSight Compliance

on 3:45 PM

Two new videos have been added to AVCU's InfoSight Compliance channel on YouTube. InfoSight is an online state and federal compliance service provided by AVCU to member credit unions. The latest videos are:
Besides being a compliance resource, AVCU's League InfoSight and related videos can serve as a training tool for non-compliance staff, executive management and volunteers board member.

Access to AVCU's League InfoSight requires credentials. Contact John Cote at AVCU for more information.

CU, Bank Leaders Pen Joint Cannabis Article

on 11:24 AM

Jim Nussle, CUNA (left), Rob Nichols, ABA (right)
In a move not often seen between rival industries, the leaders of CUNA and the American Bankers Association penned a Fox Business News opinion article urging Congress to fix the conflict for credit unions and banks with providing financial services to the cannabis industry. Their message wasn't focused on the legalization debate. Instead, they urge solving the pressing and practical concern of what to do with the money when state law says cannabis is legal but federal law says its not.

CUNA president Jim Nussle, and ABA president Rob Nichols penned that in the 33 states, territories and the District of Columbia where cannabis has been legalized, credit unions and banks are prevented from providing financial services to cannabis-related businesses because cannabis is illegal under federal law and, as a result, handling proceeds from a transaction involving it is considered money laundering. Not only does this leave cannabis businesses operating almost entirely in cash, but it has the added effect of criminalizing the vendors, suppliers and utility companies that serve those businesses.

Cannabis business owners therefore have a lot of cash stored in backroom safes, transported in backpacks and used for payroll every Friday. That much cash paints a target on storefronts and employees for would-be thieves. A 2015 study found one in every two cannabis dispensaries were robbed or burglarized, with the average thief walking away with $20,000 to $50,000.

Nussle and Nichols point to "The Secure and Fair Enforcement (SAFE) Banking Act" introduced in Congress earlier this year as a solution to ensure that the states and territories that have legalized cannabis can keep their communities safe, collect taxes and regulate markets effectively while Congress grapples with the broader questions about national drug policy. The legislation would protect credit unions and banks that offer products and services to state-legal cannabis businesses and provide assurance and legal clarity while removing vulnerabilities throughout the system. Attorneys general from 38 states, including Vermont AG TJ Donovan, also called on Congress to pass this important legislation.

Read the joint opinion article in its entirety

CECL to Be Delayed Additional Year for Credit Unions

on 10:19 AM

CECL to Be Delayed Additional Year for Credit Unions

Debit Card Market Share Sets 2018 Record

on 3:22 PM

As reported in Credit Union Times, debit cards gained market U.S. purchase volume market share in 2018 for the first time since 2011.  The data results from The Nilson Report, saying that debit cards accounted for 40% of purchase volume in 2018.

U.S. credit, debit and prepaid cards accounted for about $6.7 trillion of spending on goods and services in 2018. Credit cards were 54.9% of all purchase volume, down from 55.07% in 2017.

A CO-OP Financial Services survey of 240 U.S. credit unions found that most were optimistic about the future of debit card portfolios. Over a third (38%) said their credit union has issued debit cards to at least 70% of their checking account customers. Overall, debit card accounts will grow about 3% to 4% a year, CO-OP predicts.

Earlier this year, a survey by the Federal Reserve found that for many credit unions and other financial institutions not subject to the Electronic Fund Transfer Act’s interchange cap, the average interchange fee for debit transactions on single-message networks (typically PIN transactions) has continued to fall since the cap took effect in 2011. However, fraud losses for all debit and prepaid card transactions rose between 2015 and 2017.

CECL Compliance Delayed for CUs

on 12:13 PM

As reported in CU Journal today, most credit unions will see a temporary delay in having to comply with a controversial accounting standard for projected loan losses. The Financial Accounting Standards Board voted on 7/17/19 to extend the deadline for conversion to the Current Expected Credit Loss methodology to January 2023, except for the very largest publicly traded banks.

FASB is also laying plans to consult with banks registered with the Securities and Exchange Commission — those lenders must still comply next January — auditors and regulators in hopes of identifying points of confusion and unnecessary procedures.

Previouisly, smaller publicly traded banks not registered with the SEC were expected to convert to CECL in January, 2020, followed a year later by other banks and credit unions.

CECL has become a contentious topic, with detractors claiming it would divert capital away from lending and lead to longer, deeper recessions. Legislation in the House and Senate, aimed at delaying CECL until a quantitative impact study is conducted, has attracted bipartisan support.

The new standard requires lenders to forecast and reserve for lifetime credit losses as soon as they add loans to their portfolios. Under the current incurred-loss standard, lenders recognize credit losses when default becomes imminent.

Bitcoin falls over 11%, tumbling below $10,000 after Libra hearing

on 9:07 AM

Bitcoin falls over 11%, tumbling below $10,000 after Libra hearing

NASCUS Elects Board Members

on 3:03 PM

The National Association of State Credit Union Supervisors recently held voting by its members to elect members to the organization's board of directors.  Re-elected for another 3-year term were:
  • Steve Pelger, Georgia Department of Banking & Finance
  • Janet Powell - Oregon Department of Consumer & Business Services
The organization also has a Credit Union Advisory Council, for which two members were re-elected for another 3-year term:
  • Rick Stipa - TruMark Financial Credit Union, PA
  • Brian Wolfburg - VyStar Credit Union, FL
NASCUS is a national association advocating for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.

The Association of Vermont Credit Unions is a member of NASCUS.  It's President, Joe Bergeron, is a member of the NASCUS Legislative & Regulatory Affairs Committee.

New proposed legislation could stop Facebook's Libra plans in their tracks

on 2:09 PM

New proposed legislation could stop Facebook's Libra plans in their tracks

Compliance: Effective dates for CFPB’s payday rule

on 9:07 AM

Compliance: Effective dates for CFPB’s payday rule

Free resources now available to train and inform your staff while protecting your members!

on 10:46 AM

Free resources now available to train and inform your staff while protecting your members