It is the beginning of a new year, and credit unions are reviewing their financial performance of last year and setting budgets and strategic planning for this year. Because staying up to date on the growing number of compliance rules is a bigger responsibility every year, one of the highest strategic priorities for credit unions in 2022 is regulatory compliance.

A planned schedule of required audits will ensure necessary compliance of applicable federal and state laws and regulations. The critical aspects that shape a well-planned audit schedule are to start early, prepare heavily, and stay organized.

BSA and OFAC Compliance

The NCUA requires credit unions to audit BSA compliance measure once yearly. The Office of Foreign Assets Control (OFAC) requirements are not part of the BSA, but they both share similar goals for national security. It is common to review OFAC compliance at the same time as BSA/AML examinations. Get more info on BSA/OFAC audits.

ACH Operations Audit

An annual audit of a credit union’s ACH operations is required by December 31. The National Automated Clearinghouse Association (NACHA) mandates this annual audit, which demonstrates to regulators that the credit union has put in place controls and checks and balances for automated clearing house (ACH) payments. Read more about ACH audits here.

SAFE Act Audit

The SAFE Act requirements specifically state that a review is to be completed at least annually.  This is a minimum frequency. Testing more frequently may be considered if your credit union has a frequent or large personnel turnover or if your CU has implemented new delivery methods such as newly implemented online mortgage loan applications or online information gathering. More SAFE Act audit information here.

Wire Transfers Audit

The NCUA requires an annual evaluation of credit union policies and procedures for processing wire transfer transactions. Some of the policy and procedures reviewed are security, segregation of duties, proper authorization, and accurate completion of wire transfers.

Member Verification of Accounts Audit

Credit unions must audit all share/deposit and loan accounts at least once every two years. This is a minimum frequency. Some credit unions prefer an annual member verification audit because of the size of their member-base or because of any substantial change in membership, such as with a merger.

The audit can be completed by verifying 100% of members’ share/deposit and loan accounts or by verifying a sufficient sample size.

Annual Regulatory Audits for Credit Unions

At Griffin & Furman, our compliance audit services contribute to the quality of your credit union’s member service. We test against the most updated regulations, identify potential risks, review internal controls, and make recommendations for process improvements.

If you would like to talk about your credit union’s audit needs, please give us a call.