Myth Busters Compliance Edition: Part 3

Myth #5: Compliance is too expensive.

Compliance management does come at a cost, but non-compliance can cost a credit union much more. Penalties for non-compliance can be steep, and the damage to a credit union’s reputation can be irreparable. A proactive compliance program is more efficient and cost effective, while a reactive approach is more work and costly.

Pro tip: Credit unions are encouraged to take advantage of their league/association’s compliance offerings. Many of the compliance products and services provided are free or deeply discounted for affiliated credit unions.

Myth #6 - Compliance management is just about following rules.

Following the rules (laws and regulations) ensures things are done correctly and is an important cornerstone of compliance, but it may not be enough. Credit unions strive for a higher standard that includes promoting ethical behavior, thoughtful leadership, being transparent with members and stakeholders, and building trust. Examiner and regulatory expectations are also increasing, especially with the size and sophistication of the credit union.

Pro tip: Keep your staff engaged with the compliance process. Encourage your team to register for InfoSight and customize their dashboard for easy access to information applicable to their position or department. Create assignments in CU PolicyPro to ensure staff are aware of policy changes and understand the credit union’s deep mission to provide excellent member service. 

Thanks for keeping up with Compliance Myth Busters.