Do you know how to future-proof compliance for your credit union ahead of the next wave of regulatory changes? With over $10 billion in fines levied annually for compliance failures across financial institutions, falling behind can be costly. Not just in penalties, but in lost trust from your members.
Required audits, such as ACH, SAFE Act, and BSA, provide an opportunity to strengthen your operations and keep member trust high. Staying ahead of these critical audits is essential for your credit union’s security and reputation.
Ready to fully prepare and future-proof compliance for your credit union? We’ll walk you through the key audits to prioritize, and how we can help reduce stress this audit season.
The Automated Clearing House (ACH) is the backbone of electronic funds transfers, and compliance with ACH rules is mandatory for all credit unions. This required annual audit ensures that all transfers are secure and follow NACHA (National Automated Clearing House Association) regulations. This audit helps credit unions assess risks related to operational, compliance, and fraud vulnerabilities.
The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act mandates that credit unions conduct annual audits of their mortgage lending operations. This confirms that mortgage loan originators are properly registered and comply with regulations and is aimed at preventing fraud in the housing market. An annual audit ensures that internal processes align with federal safe lending requirements.
BSA/AML (Anti-Money Laundering) compliance is a top priority for credit unions to prevent financial crimes such as money laundering and terrorism financing. This audit, conducted every 12 to 18 months, evaluates the effectiveness of your credit union’s BSA program. It includes risk assessments, suspicious activity monitoring, and reporting. Independent audits confirm that your BSA program is up-to-date with the latest regulations and operating effectively based on the institution’s risk profile.
Website compliance is crucial to make sure that your digital presence meets the latest regulatory standards. This include the Americans with Disabilities Act (ADA) requirements. Although not required, an annual website review confirms accessibility to all your members, properly discloses privacy policies, and adheres to marketing regulations. A website audit can also assess how your digital marketing efforts align with legal requirements, such as truth-in-advertising laws and fair lending regulations.
For credit unions that engage in lending operations, annual audits focused on compliance with regulations like the Truth in Savings Act (TIS), Real Estate Settlement Procedures Act (RESPA), Servicemembers Civil Relief Act (SCRA), and fair lending laws are essential. These audits help confirm that your lending practices are transparent, fair, and compliant with federal laws designed to protect borrowers.
With the rise in cyber threats, cybersecurity audits are critical to safeguarding your credit union’s information technology infrastructure and member data. These audits help assess the effectiveness of firewalls, encryption protocols, and access controls. They also enhance mployee training programs in mitigating the risks of cyberattacks. Hackers have been increasingly targeting financial institutions. Having annual cybersecurity audits can help identify and resolve vulnerabilities before they are exploited.
With the end of the year in full view, now is the perfect time to check that your credit union is up-to-date on these key audits. Waiting until the last minute can lead to oversights, increased stress, and a greater risk of non-compliance. By preparing early, you can be sure that all necessary reviews and audits are completed before deadlines. This will allow for a smooth transition into the new year.
Some things to consider as year-end approaches include:
These proactive steps can prevent last-minute scrambling, so that your credit union is prepared for regulatory challenges in the upcoming year.
Navigating the maze of regulatory audits and staying compliant with evolving laws can be overwhelming for any credit union. This is where a CUSO like Comply-YES! can step in to help:
Comply-YES! specializes in helping credit unions meet their compliance obligations, providing expert guidance on the latest regulations and audit requirements. We can help you rest easy, knowing that your credit union is prepared for all necessary reviews and audits, reducing the risk of non-compliance.
By partnering with Comply-YES!, your credit union can streamline the audit process. We provide the resources and expertise to conduct thorough audits efficiently, allowing you to focus on what matters most—serving your members.
Every credit union is unique, and Comply-YES! offers customizable compliance solutions that are tailored to your specific needs. Whether you need assistance with BSA audits, ACH risk assessments, or cybersecurity reviews, we can design a program that fits your institution’s risk profile and operational requirements.
With Comply-YES! handling your compliance audits, you can rest easy knowing that your credit union is fully compliant and ready for any regulatory changes that may arise. Giving your leadership team this peace of mind allows them to focus on growth and innovation, rather than worrying about the next audit.
The regulatory landscape is constantly evolving, with new requirements and challenges emerging every year. By staying proactive and conducting regular audits, credit unions can be sure that they remain compliant with current regulations and are prepared for any changes in the future.
Partnering with Comply-YES! is one of the best ways to future-proof your compliance strategy. Our team of experts stays on top of the latest regulatory developments. In othe words, we can help your credit union prepare for this audit season, and all the ones to come. Don’t wait until the last minute. Start preparing for your year-end compliance needs today, and set your credit union up for success in the coming year.
