The scope of the self-assessments/audits address all provisions of Regulation E, as applicable.

There are any weaknesses or other risks in the business model.

Through a review of all available information (e.g., written policies and procedures, management’s self-assessments, member complaints, prior examination reports, and any compliance audit material, including work papers and reports), determine whether:.

Through a review of all available information (e.g., board minutes, management reports, monitoring reports, etc.) and discussions with management, determine whether the board and management have set clear expectations about compliance with Regulation E, not only within the credit union but also with key business partners, including agents, correspondent banks, and software providers, to the extent relevant.

Section I – Management and Policy-Related Examination Procedures

Section III applies to remittance transfer providers (including credit unions).Įach examination should be risk-focused and may not require completion of all three sections.

Section II covers electronic fund transfers that credit unions conduct.

Section I covers management and policy-related procedures for credit unions.

These examination procedures are divided into three sections:

As appropriate, direct corrective action when violations of law are identified or when the credit union’s policies or internal controls are deficient.

Determine how reliable the credit union’s internal controls and procedures are for monitoring its compliance with Regulation E.

Assess the quality of the credit union’s compliance risk management systems and its policies and procedures for implementing Regulation E.

Determine the credit union’s compliance with Regulation E.

Strategic risk can occur when the board of directors fails to perform necessary due diligence in reviewing existing and prospective products and services for compliance with Regulation E. Reputation risk can occur when the credit union incurs losses or receives decreased member confidence as a result of failure to comply with Regulation E. Transaction risk can occur when the credit union does not have adequate internal controls in place and as a result suffers a loss. In February 2012, CFPB added subpart B (Requirements for Remittance Transfers) to Regulation E to implement the remittance protections in the Dodd-Frank Act.įull text of EFTA – Regulation E can be found here.Ĭompliance risk can occur when the credit union fails to implement the necessary controls to comply with Regulation E. In December 2011, CFPB restated Regulation E at 12 CFR Part 1005. The Dodd-Frank Act also amended EFTA and created a new system of consumer protections for remittance transfers that customers in the United States send to individuals and businesses in foreign countries. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority under EFTA from the Board of Governors of the Federal Reserve to the Consumer Financial Protection Bureau (CFPB).

The Board also amended Regulation E to restrict fees and expiration dates on gift cards, and to require that gift card terms be stated clearly. In 2009, the Federal Reserve Board (Board) amended Regulation E to prohibit overdraft fees for ATM and one-time debit card transactions, unless the consumer opts in or affirmatively consents to the overdraft services. If you find EFTA violations at a FISCU and you feel the State Supervisory Authority is not properly addressing the issue, contact your supervisor. NCUA is not the primary enforcement authority for EFTA in federally-insured, state-chartered credit unions (FISCUs).

State and Federal Credit Unions are subject to the provisions of Regulation E. Telephone bill-payment plans where periodic or recurring transfers are contemplated ĮFTA is implemented through Regulation E, which includes official interpretations.Transfers through automated teller machines (ATMs).§ 1693 et seq., protects individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers, including: The Electronic Fund Transfer Act (EFTA) of 1978, 15 U.S.C.

Ach debit fee consumer credit unioin