PolicyWorks Whitepaper Addresses 2019 Credit Union Compliance Challenges


(Des Moines, Iowa) – PolicyWorks LLC, part of the Affiliates Management Company (AMC) family of companies, has issued its first whitepaper of 2019 with subject matter aimed at helping credit unions face compliance challenges and prepare for both internal and external audits and examinations.

The 2019 Compliance Season: Let’s Get Serious, written by Jason Skemp, PolicyWorks’ Director of Audit Services, reviews this year’s priorities from the National Credit Union Administration (NCUA), offering insight, understanding and strategies for coping with regulatory challenges.

“In 2018, examiners let credit unions ease in to addressing some of the newer rules and regs in recognition, perhaps, that change takes time,” writes Skemp. “Well, time’s up! Whatever leeway existed has all but evaporated, and examiners will be operating with a new level of scrutiny when it comes to credit union compliance.”

The whitepaper examines all six of NCUA’s 2019 priorities, including the Bank Secrecy Act (BSA), Concentrations of Credit, Consumer Compliance, Current Expected Credit Losses (CECL), Cybersecurity and Liquidity and Interest Rate Risk. Skemp identifies hot spots within each category, as well as strategies to help credit unions meet required compliance levels. Compliance experts from a few credit unions also offer thoughts and ideas for facing examiners and operating in safe and sound manner.

In addition, the whitepaper stresses the importance of conducting audits of various credit union operations as trial runs for the inevitable examinations that all financial institutions face. Skemp outlines the steps necessary to prepare for an effective audit, one that truly evaluates the credit union’s capabilities in key areas of interest.

“Make sure the auditing team has a clear understanding of your expectations of the process and is prepared to provide it,” writes Skemp. “Under the best circumstances both parties understand the audit’s purpose, the credit union has uploaded the necessary documentation, and the documents are ready for the auditors when they walk through the door.”

The whitepaper also stresses the importance of developing a comprehensive Compliance Management System comprised of written documents, functions, processes, controls and tools that help them more easily face compliance challenges. Such a system offers a structured approach that can be applied to most credit union processes and operations without having to start from scratch each time an audit or examination is required.

The 2019 Compliance Season: Let’s Get Serious is available free of charge to credit unions. Visit http://www.policyworksllccompliance.com/2019-compliance-season to download your complimentary copy.