Compliance Watch

Question: If we deposit a two-party check to an account that includes only one of the two payees (our member), what is our potential liability? Answer: As a depository “bank” under UCC, you warrant to the payor “bank” (the financial institution you are presenting the check to for payment) that the endorsements are genuine and that the check has not been altered or forged.

You have a choice every day to IMPACT the lives of others. When you invest in your professional growth, you can’t help but IMPACT your credit union, your credit union members, and the credit union movement.

Compliance touches every part of the credit union. With easy-to-read summaries, checklists, FAQs, and more, InfoSight can assist with compliance in all areas of your organization.

In a joint letter, the NCUA board requested that Congress make permanent the enhancements to the Central Liquidity Facility contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This week, FinCEN issued Notice FIN-2021-NTC4, "FinCEN Calls Attention to Environmental Crimes and Related Financial Activity," to call attention to an upward trend in environmental crimes and associated illicit financial activity.

The CFPB has announced it has issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act (HMDA).

The CFPB has emailed a reminder concerning a provision of Regulation F implementing the Fair Debt Collection Practices Act.

HUD has awarded a total of $3.6 million to eight communities to support comprehensive neighborhood revitalization plans to redevelop severely distressed HUD-assisted housing, improve outcomes for residents, and bring new amenities to neighborhoods.

The good news is that bankruptcies have diminished during the pandemic by virtue of “enhanced” unemployment benefits and moratoria on foreclosures and evictions. The not-so-good news is that the benefits and moratoria have now expired, so landlords and mortgage lenders can be expected to resort to legal remedies.

Question: Are money orders considered cashier’s checks under UCC? Answer: Generally, no. Usually, money orders are sold by the credit union but drawn on an account held by whoever the vendor is that issues the checks.