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Compliance Confusion: State vs. Federal CUs
Friday, May 2, 2014 6:50 AM

Sometimes a myth gets repeated often enough that some people will grow to believe it as a fact. When it comes to compliance, this is especially dangerous. Here are the two biggest compliance myths regarding credit unions:

Credit Union Myth #1:  We are a federally chartered credit union, so we don’t have to follow state law.

Credit Union Myth #2:  We are a state-chartered credit union, so we don’t have to follow NCUA regulations.

Cornerstone Credit Union League’s Senior Vice President Regulatory Compliance Counsel Suzanne Yashewski cautions credit unions about perpetuating these myths.

“As a federal credit union, you do have to follow many state laws, and as a state-chartered credit union, you do have to follow many NCUA regulations,” she says. “It’s could be a grave mistake to think otherwise.”

To help credit unions remain in compliance, Yashewski has prepared a “cheat sheet” which credit unions can use as a reference guide or as a springboard for learning more about the compliance rules that do apply to both state-chartered and federally chartered credit unions. The document is titled “Compliance Confusion:  State vs. Federal Credit Unions,” and you can access this document from the Cornerstone website. Cornerstone encourages credit unions to download and keep it handy, discuss it at your next staff meeting, and include it with your other training materials.