Frank Praises Credit Unions
Speaking before a meeting held in conjunction with the Credit Union National Association's America's Credit Union Conference in Boston, House Financial Services Committee Chairman Barney Frank said that credit unions have not been singled out for negative treatment under financial regulatory reform because they "were zero part of the current financial upheaval."

 

According to Frank, the "good news" for credit unions is that "there is no news," as Congress is currently busy taking care of the problems created by other financial institutions. While Congress is expected to be occupied with financial regulatory reform through the end of this year, Frank said that he plans to begin a review of credit union powers early next year.

 

Frank also commended CUNA President/CEO Dan Mica and League (Association)President Dan Egan for their leadership on behalf of the credit union movement, adding that both Mica and Egan are working to pursue credit union interests with Frank.

 

Egan reflected, “Chairman Frank’s concern for credit unions is deeply appreciated. As Chairman of the House Financial Services Committee, he has utilized his influence to insure that credit unions are treated fairly in every piece of financial legislation.” 

 

 

Agencies Issue Frequently Asked Questions on Identity Theft Rules
On June 11, 2009, six federal agencies issued a set of frequently asked questions (FAQs) to help financial institutions, creditors, users of consumer reports, and issuers of credit cards and debit cards comply with federal regulations on identity theft and discrepancies in changes of address.

 

The Red Flags and Address Discrepancy Rules, which implement sections of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), were issued jointly on November 9, 2007, by the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision, and Federal Trade Commission.

 

The rules require financial institutions and creditors to develop and implement written Identity Theft Prevention Programs and require issuers of credit cards and debit cards to assess the validity of notifications of changes of address.  The rules also provide guidance for users of consumer reports regarding reasonable policies and procedures to employ when consumer reporting agencies send them notices of address discrepancy.

 

The agencies' staff have jointly developed answers to these FAQs to provide guidance on numerous aspects of the identity theft rules, including which types of entities and accounts are covered; establishment and administration of an Identity Theft Prevention Program; address validation requirements applicable to card issuers; and the obligations of users of consumer reports upon receiving a notice of address discrepancy.

 

 

FinCEN Guidance Clarifies 314(b) Information Sharing
On June 16, 2009, the Financial Crimes Enforcement Network (FinCEN) issued guidance to financial institutions intended to clarify the use of an important information sharing tool made possible by section 314(b) of the USA PATRIOT Act.  The guidance clarifies the scope of permissible information sharing covered by the section 314(b) safe harbor.  Section 314(b) permits participating financial institutions, upon providing notice to FinCEN, to avail themselves of a statutory safe harbor from civil liability for sharing information with one another to identify and report activities, such as mortgage fraud, that they suspect may involve possible terrorist activity or money laundering.

 

“Fraud generates dirty money,” noted FinCEN Director James H. Freis, Jr.  “In order to be used by a criminal that money needs to be cleaned and integrated into the legitimate financial system.  The more information bankers and brokers can share the more the integrity of our financial system will be protected and law enforcement can gain additional sources of valuable information.”

 

The privacy and security of any shared data is of paramount concern and financial institutions which participate in the section 314(b) information sharing program must maintain adequate procedures to protect the security and confidentiality of such information. Participation in the section 314(b) information sharing is voluntary and utilized at the discretion of the participating financial institution.