Volume 27, Number 13                                            July 15, 2007

HEADLINE NEWS

Wal-Mart Enters the Financial Services Marketplace
     Credit unions will soon be challenged by another competitor in the financial services marketplace. Wal-Mart announced at the end of June that it will expand into retail banking through MoneyCenters, which will offer check cashing, money transfers, bill payment, and money orders in 1,000 of its stories by 2008.
     Wal-Mart will also offer the company’s new prepaid Visa debit card intended for low-income shoppers and will build its own ATM network.
     In a recent president’s message, New York State League president William J. Mellin asked the following question: “Why should such consumers want to cash their checks at Wal-Mart and be charged a fee? They could instead cash their checks at a credit union and deposit those dollars they would have been charged by Wal-Mart into a savings account they could then maintain.”
     Mellin goes on to say: “These consumers are ideal candidates for credit union membership, and our movement should continue to explore new ways to recruit them and, more importantly, guide them on the path to becoming financially sound.”
     This certainly provides some food for thought!

League Compliance Information
     Several Delaware credit unions are currently offering “skip-a-payment” programs to their members or may do so during the holidays. To make sure that these CUs are up-to-date on the regulations that go along with such a program, the League is sending along information in its July Compliance Recap, which will be sent to all managers/CEOs along with this newsletter.
     The mailing will also include the July issue of CUNA’s Compliance Challenge, with questions and answers regarding Bank Secrecy Act issues and mortgage matters.

New Financial Resources for Consumers and Credit Unions
■  2007 Directory of Federally Insured CUs Issued. The National Credit Union Administration’s 2007 directory contains a state-by-state, alphabetical listing of all federally insured credit unions as of January 1, 2007. The directory includes information on both public and corporate credit unions and comprehensive statistics for both types of credit unions. The document is available online: http://www.ncua.gov/data/directory/2007/CUDirectory07.pdf. Order a hard copy directory for $15 from NCUA Publications at 703-518-6364.

■  Bank Secrecy Act Information and Resources. The Financial Crimes Enforcement Network (FinCEN) has issued a Bank Secrecy Act (BSA) Fact Sheet that outlines steps it plans to take to increase the effectiveness and efficiency of the Bank Secrecy Act. Included in the fact statement is a discussion of risk-based exams for smaller institutions, money service business exam materials, and FinCEN efforts to provide feedback to the industry. The Fact Sheet is available at http://www.fincen.gov/bsa_fact_sheet.pdf.

COMPLIANCE RECAP

Fed Issues Exception for Small Debit Transactions
     The Federal Reserve Board has announced its approval of a final rule to create an exception for transactions of $15 or less from Regulation E’s requirement that receipts be made available to consumers for transactions initiated at an electronic terminal. Merchants will no longer be required to provide a receipt for a debit purchase of $15 or less.
     Regulation E implements the Electronic Fund Transfer Act. The rule is intended to facilitate the ability of consumers to use debit cards in retail environments where making receipts available may not be practical or cost effective. The rule is effective August 6.

Revised SAR Forms Delayed
     In April, the Financial Crimes Enforcement Network (FinCEN) announced the delayed implementation of certain revised Suspicious Activity Report (SAR) forms that were scheduled to become effective on June 30, 2007. This deadline also has been delayed.
     FinCEN will establish new effective and mandatory compliance dates for these revised forms in a future notice. Current forms should continue to be used. To view the notice, please go to http://www.fincen.gov/sar_fr_notice.pdf.

NCUA Sends Alerts on FinCEN Guidance
     NCUA has alerted federally insured credit unions to the interpretative regulatory guidance issued last month on two Bank Secrecy Act (BSA) topics. The information is found in Regulatory Alert 07-RA-05, which is available online at http://www.ncua.gov/reg_alerts/2007/07-RA-05.doc.
     The Financial Crimes Enforcement Network (FinCEN), in apparent response to questions fielded by its Financial Institutions Hotline, released two documents: one addressing Suspicious Activity Report (SAR) filings, the other law enforcement requests to maintain an account.
     In its letter, the NCUA offered these summaries:
     1) For Suspicious Activity Report Supporting Documentation (FIN-2007-G003):
■  When a credit union files a Suspicious Activity Report (SAR), it is required to maintain a copy of the SAR and the original or business record equivalent of any supporting documentation for a period of five years from the filing date. Credit unions must provide all documentation supporting the filing of a SAR upon request by FinCEN or an appropriate law enforcement or supervisory agency.
■  Supporting documentation refers to all documents or records considered in making the decision to file a SAR and depends on the facts and circumstances of each case. Disclosure of SARs to appropriate law enforcement and supervisory agencies is protected by the safe harbor provisions applicable to both voluntary and mandatory suspicious activity reporting by credit unions.
     2) For Requests by Law Enforcement for Financial Institutions to Maintain Accounts (FIN-2007-G002):
■  Law enforcement may have an interest in ensuring certain account relationships remain open, despite suspicious or potential criminal activity in connection with the account. Complying with such a request may further law enforcement efforts to combat money laundering, terrorist financing, and other crimes. However, each credit union must ultimately make the decision to maintain or close an account in accordance with its own standards and guidelines.
■  When law enforcement requests a particular account be maintained, the credit union should ask for a written request. The request should be issued by a supervisory agent or an attorney representing the federal, state, or local law enforcement agency. It should indicate the purpose and specify a duration not to exceed six months. FinCEN recommends credit unions maintain documentation of such requests for at least five years after the request has expired.
     Should your credit union have any questions about this issue, please contact your district examiner or NCUA’s Region II office.

DELAWARE NOTES

Mid-Atlantic Corporate FCU held its 31st annual meeting on June 22. At the reorganization meeting, the following table officers were elected: Chair Richard Burtnett, Pennsylvania Grange FCU, Camp Hill, PA; Vice Chair Mike Pastirik, United Community FCU, West Mifflin, PA; Treasurer Joan Moran, Department of Labor FCU, Washington, D.C.; and Secretary Brian Vittek, Destinations CU, Baltimore, MD. Dennis Flickinger, First Capital FCU, York, PA; John Gulick, Central Valley FCU, Arnold, PA; and Jim McCaw, Viriva Community CU, Philadelphia, PA, were appointed to the Supervisory Committee. At the annual golf outing preceding the meeting, John Lewis, board chair of SUSSEX COUNTY FCU, won the prize for Senior Men’s Longest Drive.

Thanks to Duke Strosser, CEO of DEL-ONE (DELAWARE FCU), and DELAWARE ALLIANCE FCU for writing to Delaware’s members in Congress in support of HR 1537, the Credit Union Regulatory Improvements Act (CURIA). The letter from Delaware Alliance FCU was signed by CEO Dawn Sutcliffe and the entire board on behalf of the credit union’s 6500 members.

DEL-ONE’s Annual Meeting was held on May 8 with more than 450 employees, volunteers, members, and guests on hand. Outstanding achievement awards presented that evening included the Employee of the Year award to Amanda Lennon; Department of the Year award to the marketing team, consisting of Sharee Coleman, Amanda Lennon, Debbie Jewell, Amy Durham, and Tanya McDaniels; Community Outreach Volunteer of the Year award to Ruby Herrington; and the first-ever Bridge Builder award to Judy Cook, Vice President of Operations. The credit union also presented a $1,000 scholarship to Ryan Davis, a graduating senior at Milford High School.

DOVER FCU welcomes Charlene Nardo as the new manager of its North DuPont Highway branch in Dover. In addition, Lorraine Miller was promoted to the position of branch manager of the Saulsbury Road office in Dover.

DEXSTA FCU president and CEO Jerry King has been inducted into Goldey-Beacom College’s distinguished alumni gallery. Jerry is a member of the Financial Managers Society, the Credit Union Executives Society, and currently serves as vice chairman of the Delaware Credit Union League.

Charlene Nardo	Lorraine Miller	Jerry King

Congratulations to Kate Toner, board chair of WILMINGTON POSTAL FCU, who recently joined her teammate Margi Turner in capturing the 50-54 competition in the Senior Olympics bowling event in Louisville, Kentucky.

BauerFinancial Ratings
     Kudos to the following CUs who received 5-star ratings from BauerFinancial, Inc., an independent financial institution rating and research firm: American Spirit, Chestnut Run, Delaware Alliance, Delaware State Police, Del-One, DEXSTA, Dover, DPL, First State Refinery, ICI America, Milford Memorial, New Castle County Delaware Employees, New Castle County School Employees, Preferred Financial, Provident, Seaford, U-Del, and Wilmington Postal. The ratings are based upon 2007 first quarter financial data as reported to financial regulators. Five stars (superior) is the highest rating given by the firm. Four additional CUs received four-star (excellent) ratings: Delaware River and Bay Authority EFCU, Delaware V.A., Louviers, and Sussex County. Credit unions with less than $1.5 million in assets are not rated.

Workplace Spanish for CUs eSchool Kicks Off August 8
     CUNA’s “Workplace Spanish for Credit Unions” eSchool kicks off its first of eight Wednesday sessions on August 8.  Classes are designed for beginners and cover: Latino culture and your credit union; alphabet, pronunciation, and greetings; days, months, and seasons; times and numbers; member service and credit union terms; checks, identification and loan applications; developing conversations; and review and application. The program runs through September 26. An eSchool is a series of interactive classroom sessions that features live, real time instruction from industry experts via the Internet and a telephone conference call. Students are able to interact with the instructor and other participants via online chats and live discussion. For more information, please visit www.training.cuna.org or call (800) 356-9655, Ext. 4249.

DELAWARE CU JOB POSTINGS

Dover FCU is seeking to fill the following three positions. Applicants can send a cover letter, resume, and salary requirements to: HR Dept, Dover Federal Credit Union, P.O. Box 2009, DAFB, DE 19902. Fax: 302-678-8037. Email: hshupe@doverfcu.com. Or stop by a branch to complete an application.
     1) Operations Manager. Full-time individual to direct plastic card, electronic services, operations support, and maintenance functions. Requirements: High school diploma with additional post-secondary technical coursework, 2 years experience in financial institutions, well-developed interpersonal skills, and 2 years supervisory experience. Working knowledge of Word/Excel.
     2) Branch Manager. Full-time individual to guide branch staff in providing quality service to members in the areas of account transactions, loan applications, new accounts, and solving problems. Requirements: HS diploma with additional post-secondary technical coursework, 4 years experience in CU or similar financial environment, well-developed interpersonal skills, and two years supervisory experience. Intermediate knowledge of PC applications.
     3) Teller. Part-time position. Applicant must have high school diploma, minimum one-year large cash handling/financial experience, clean background and credit history. Only qualified applicants will be contacted.

Full-Time Teller Position. Chestnut Run FCU is seeking a full-time teller. Experience a plus. Applicant needs good member service skills and should desire to learn other tasks associated with a credit union. Salary commensurate with experience. Benefits include health care, 401k plan, vacation, life insurance, and Blood Bank. Fax resume with salary requirements to: 302-999-4889.

Full/Part-Time Tellers. Previous teller or cash handling experience preferred. Must be able to accurately process member transactions. Must be reliable, personable & customer focused. Some Saturday morning hours required. Fax resume with cover letter to: Attn: Human Resources, 302-225-0619. Or email: hrmanager@dexsta.com.   

EDUCATIONAL OPPORTUNITIES

July/August QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
■  7/17  Leadership: This Way, That Way, All Ways
■  7/26  Youth Accounts
■  8/01  Turbo Charged Marketing for Small CUs
■  8/09  Risk Based Lending
■  8/14  Website Compliance
■  8/22  Measuring Member Service/Satisfaction
■  8/29  Truth-in-Lending Act and Reg Z
Two-hour sessions run from 11 a.m.-1 p.m.:
■  7/24  Employee Policies, Procedures & Practices
■  8/14  Credit Union Incentives
     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, process, appraisals, and settlement. 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, go 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).