Volume 27, Number 12                                       June 30, 2007

HEADLINE NEWS

Preliminary Escheat Report Due August 1, 2007
     All credit unions are required to make a preliminary report to the Delaware State Escheator at the Bureau of Unclaimed Property by August 1, 2007. The report lists unclaimed property, which refers to various types of personal property of Delaware residents that has been abandoned for five years or more, including share and share draft accounts, uncashed share drafts, dividends, etc.
     Every Delaware CU, regardless of whether it holds unclaimed property, must file a copy of Form AP-1 (Report Verification), which provides a summary of the CU’s report and which must be signed and verified by a CU officer. An additional itemized form must be completed if you hold unclaimed property. The preliminary report is due in August, and the final report and remittance of monies in any such accounts are due by November 10, 2007. During that three-month interval, CUs need to advertise the existence of these abandoned accounts.
     Unclaimed property forms and a booklet describing the process for submitting unclaimed property is available at www.state.de.us/revenue (click on “unclaimed property”). The League has sent a full packet of escheat information, including those materials, to each CU manager/CEO.
     Remember, amounts in excess of $25 must be reported to the state of the member’s last known address. You will need to contact each applicable state to obtain the correct filing forms, deadlines and dormancy periods (which vary state to state). For example, in Maryland and most recently in New York, the dormancy period has dropped to three years before abandoned property must be turned over to those states.
     Contact Susan Fallon if you need contact information for other states or if you need more detailed escheat reporting information. The League also has sample letters that can be sent to members who have a dormant account.

Help Support CULAC by Hosting “Dress Down” Days
     Summer is here, and everyone likes to dress more casually to ward off the heat. The League Governmental Affairs Committee would like you to help in this effort and raise money for credit union political action by giving your employees the opportunity to “dress down” for casual comfort during the months of July and August.
     Credit unions are encouraged to participate in this event by allowing staff to make a suggested donation to the Credit Union Legislative Action Council (CULAC) for the privilege of  wearing casual dress for an entire week or designated days. Each CU will define what casual dress constitutes, but the overall concept is to raise not only money but also awareness of CULAC with employees and members.
     A packet containing instructions on how to participate has been emailed and faxed to all CUs, along with a form which will indicate that your CU wishes to participate. Please email or fax this form back to Alice Smith (alice@dcul.org) at the League office as soon as possible. DEXSTA FCU is the first CU to return the form.
     The money raised during Dress Down Days will be forwarded to CULAC, credit unions’ national PAC, which collects funds from individuals to support credit union friends in federal election campaigns.
     Dress Down Days is part of the Governmental Affairs Committee’s efforts to raise $4,741.58 this year to help the national CULAC contribution campaign. This is also a good activity for Credit Union Week, the third week in October.

COMPLIANCE RECAP

FinCEN Issues Guidance on SAR Supporting Documentation
     On June 13, FinCEN issued guidance (2007-G003) to clarify (1) the Bank Secrecy Act (BSA) requirement that financial institutions provide Suspicious Activity Report (SAR) supporting documentation in response to requests by FinCEN and appropriate law enforcement or supervisory agencies; (2) what constitutes “supporting documentation” under SAR regulations; and (3) when legal process is required for disclosure of supporting documentation.
     (1) Disclosure of Supporting Documentation to FinCEN and Appropriate Law Enforcement or Supervisory Agencies
When requested to provide supporting documentation, financial institutions should take special care to verify that a requestor of information is, in fact, a representative of FinCEN or an appropriate law enforcement or supervisory agency. A financial institution should incorporate procedures for such verification into its BSA compliance or anti-money laundering program. These procedures may include, for example, independent employment verification with the requestor’s field office or face-to-face review of the requestor’s credentials.      
     (2) What Constitutes Supporting Documentation
What qualifies as supporting documentation depends on the facts and circumstances of each filing. As indicated in each of the SAR forms, financial institutions should identify in the SAR narrative the supporting documentation, which may include, for example, transaction records, new account information, tape recordings, e-mail messages, and correspondence. While items identified in the narrative of the SAR generally constitute supporting documentation, a document or record may qualify as supporting documentation even if not identified in the narrative.      
     (3) No Legal Process Is Required for Disclosure of Supporting Documentation
The Right to Financial Privacy Act (RFPA) requirement does NOT apply when the financial institution provides the financial records or information to FinCEN or a supervisory agency in the exercise of its “supervisory, regulatory or monetary functions.” In addition, no such requirement applies when FinCEN or an appropriate law enforcement or supervisory agency requests either a copy of a SAR or supporting documentation underlying the SAR.
     With respect to supporting documentation, rules under the BSA state explicitly that financial institutions must retain copies of supporting documentation, that supporting documentation is “deemed to have been filed with” the SAR, and that financial institutions must provide supporting documentation upon request. FinCEN has interpreted these regulations under the BSA as requiring a financial institution to provide supporting documentation even in the absence of legal process. FinCEN understands that this is in accord with the RFPA, which states that nothing in the act “authorize(s) the withholding of financial records or information required to be reported in accordance with any Federal statute or rule promulgated thereunder.”
     FinCEN consulted with staffs of the Department of Justice, the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the United States Secret Service, the Department of Homeland Security’s Immigration and Customs Enforcement, the Drug Enforcement Administration, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the National Credit Union Administration (NCUA), the Commodity Futures Trading Commission, and the Securities and Exchange Commission prior to issuing this guidance.
     To access FinCEN’s guidance, please go to http://www.fincen.gov/Supporting_Documentation_Guidance.html. 
    
NCUA Regulatory Alert 07-RA-04
     The National Credit Union Administration has issued Regulatory Alert 07-RA-04 on the May 2007 issue of the Financial Crimes Enforcement Network's SAR Activity Review –Trends, Tips & Issues. The publication provides information relating to activity reported on Suspicious Activity Reports (SARs) and topics in this issue include trends and analysis, law enforcement cases, and tips on form preparation and filing. To see this alert, go to http://www.ncua.gov/reg_alerts/2007/07-RA-04.doc.

CU SYSTEM NEWS

Small CU Roundtable Update
     Five credit unions participated in the Small CU Bond Review session and roundtable on June 18. CUNA Mutual representatives Heidi Hodgson and Tom McLane assured CUs that they are totally accessible to all credit unions – there is always a CUNA Mutual rep available to take your calls.
      During the networking session, CUs named their biggest challenges: * how to increase membership; * how to attain positive loan growth; * handling delinquent loans; and * finding new and affordable services to offer to their members. League EVP Jane Bailey suggested that she has information on a reloadable debit card program, a mortgage referral program, and repossession services available through CenterOne – all services that credit unions might offer.

CUNA Mutual Group Better Positioned to Deliver, CEO Says
     During the 12th Annual CUNA Mutual Group Discovery Conference held June 20-23, President and CEO Jeff Post told attendees that the company is significantly stronger today than it was two years ago and in a better position to address credit unions’ evolving needs in a dynamic financial marketplace.
     Though the company’s 3-year transformation is not complete, Post said the improvement initiative has created a solid foundation from which CUNA Mutual will deliver innovative and scalable products and superior service in a timely and fiscally responsible way.
     “We’ve made substantial progress in improving our customer service, achieving superior investment performance, and creating a more accountable and single-point-of-contact sales organization,” Post said. “We are financially stronger, have infused new talent and have the processes in place to deliver what credit unions have told us they wanted.”
     “We’re focused on innovation because we believe it can redefine the industry – enabling credit unions to grow and providing members with access to new financial opportunities.”

Senator Carper Supports Credit Card Changes
     Senator Tom Carper (D-Del.), a senior member of the Senate Banking Committee, said that legislation to get rid of confusing credit card practices would be appropriate. Carper has applauded a proposal from the Federal Reserve Board that would require credit card companies to create more informative disclosures and is scheduled to hold a summit encouraging credit card issuers to enforce better practices by recognizing them with a "gold standard" (American Banker June 14). Carper also wants the Banking Committee to have another hearing regarding proposed disclosure changes to Regulation Z.
     Delaware credit unions welcome Chuck Jones as Senator Carper’s new legislative aide for financial institutions.

Fed Offers Online Mortgage Calculator
     The Federal Reserve Board announces that an online Mortgage Comparison Calculator is now available so consumers can compare monthly mortgage payments and the amount of equity they will build for up to six types of fixed- and adjustable-rate mortgages. The calculator estimates the loan balance in future years, home equity, initial monthly payments and future monthly payments. It also includes a mortgage shopping work sheet, a glossary of terms, and links to the board's other resources. For more information, go to https://www.federalreserve.gov/apps/mortcalc/.

DELAWARE NOTES

Congratulations to the members, staff, and volunteers of DELAWARE FIRST FCU, which celebrated 45 years of service on June 7.

DEL-ONE (Delaware FCU) reports that the CU was able to contribute $18,813.25 for community outreach in 2006, due to the active support of members, staff and volunteers.

These CUs recently began using these Mid-Atlantic Corporate services: LOUVIERS FCU – PPD and WILMINGTON POSTAL FCU – SimpliCD.

Sussex County FCU has the following positions available:
•  Branch Manager for its Seaford office
•  Member Service Representative for the new Millsboro office (tentatively scheduled to open in September 2007)
•  Full-time Teller positions at the Lewes office
•  Part-time Teller positions (up to 19 hours per week) for the Milford, Lewes, and Seaford offices.
The CU offers an excellent benefit package for full time positions. Anyone interested should fax his/her resume and salary requirements to Joann Kirwan, VP Branch Operations, at (302) 629-2583 or email Sjkirwan@sussexcfcu.com.

Part-Time Teller Position. Claymont office: 25 hours per week. Tellers are often the first contact a person will have with the CU. A member's level of satisfaction with the CU is largely based on the quality of service they receive from tellers. That makes the position of teller one of the most important jobs in the CU and a great place to begin a career at Eagle One FCU, where we are committed to delivering financial solutions to our members. If you are interested in a position which starts at $10.00 an hour and may require occasional travel, please forward your resume to: Eagle One FCU, Attention:  Human Resources (ERB), 1000 Tinicum Island Road, Bldg C11 - Room 130, Philadelphia, PA 19153, or email estellab@eagleonecu.com

EDUCATIONAL OPPORTUNITIES

July QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
■  7/02  Hiring: Tips, Tricks, and Traps
■  7/11  How to Build or Improve a Call Center
■  7/17  Leadership: This Way, That Way, All Ways
■  7/26  Youth Accounts
Two-hour sessions run from 11 a.m.-1 p.m.:
■  7/24  Employee Policies, Procedures & Practices
The fee for the one-hour session is $99; the fee for the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Human Resource Council: “Documenting Problem Performance and Discipline” – Tuesday, July 31, from 10 a.m.-noon at the League office. Speaker: Maria L. Petrillo, Esquire, from Saul Ewing, LLP. This session is free to HR Council members; non-members’ fee is $75. Lunch is provided. Regis. deadline: July 24.

Delaware League Organizes Home Buying & Selling Seminar – Tuesday, July 31, from 6:30-8:30 p.m. at the League office. Credit unions are urged to advertise this session to your members. The seminar, facilitated by GMAC Mortgage, will provide first-time homebuyers and sellers with information on real estate services, mortgage options and process, appraisals, settlement and much more. One lucky attendee will win an iPod.
Marketing materials, including an article for your newsletter or website, are available from Jane Bailey. Credit unions are asked to enroll their own members and then report the number of attendees to Jane no later than July 20.

NCUA Credit Union Development Workshop – Saturday, August 4, at the Hilton Washington DC, Silver Springs, MD.  This free session, from 8:30 a.m.-3 p.m., will cover success and strategic planning, marketing, key ratios, and regulatory hot topics. For more information, contact Alice Smith at the League for registration information or go online to: http://www.ncua.gov/CreditUnionDevelopment/Events/Index.htm

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).