Latest summaries look at SARs, Reg Z and Reg M exemptions

(Jan. 8, 2021) Two new summaries – of an NCUA proposal on exemptions for suspicious activity reports (SARs) and exemption thresholds for consumer reporting requirements – have been published by NASCUS.

Both are available to members only.

Late last month, the NCUA Board proposed modifying requirements for federally insured credit unions to file SARs under Bank Secrecy Act (BSA) requirements that would exempt some credit unions which develop “innovative solutions” to meet BSA requirements, when requested.

In its proposal, NCUA suggested that innovative approaches and technological developments in the areas of SAR monitoring, investigation and filings may involve a variety of techniques, including automated form population, automated or limited investigation processes and enhanced monitoring processes

The agency said requests for exemptive relief pertaining to innovation or other matters may involve, among other things, for SARs: expanded investigations and timing issues, disclosures and sharing, continued filings for ongoing activity, outsourcing of responsibilities and practices, as well as the role of agents of FICUs, the use of shared utilities and shared data, and the use and sharing of de-identified data. “The NCUA expects that new technologies will continue to prompt additional innovative approaches related to SAR filing and monitoring,” the agency said.

However, NCUA added, any exemptions it grants would not relieve a credit union from its obligation to comply with Treasury’s Financial Crimes Enforcement Network (FinCEN) SARs regulations, where appropriate.

The second summary looks at a regulatory alert issued by NCUA, also late last month, on annual adjustments for exemption thresholds for 2021 under the Truth in Lending Act (Regulation Z) and the Consumer Leasing Act (Regulation M). The new thresholds (which took effect Jan. 1) are the same as the 2020 thresholds, specifically: for higher price mortgage loans exemption, $27,200; for consumer credit and consumer lease exemptions, $58,300.

NASCUS Summary: NCUA Proposed Rule BSA Part 748

NASCUS Summary: Regulatory Alert 20-RA-09 2021 Exemption Thresholds Adjustments Under the Truth in Lending Act (Regulation Z) and the Consumer Leasing Act (members only)