Montana's Credit Unions - Educate Advocate Collaborate

COMPLIANCE VAULT

JANUARY 2025

BOI Registration Tied Up in Court


In recent weeks, a few court decisions have impacted the January 1, 2025, date for businesses to have their beneficial ownership information registered with FinCEN or face hefty fines.

  • On December 2, the Eastern District of Texas issued an order granting a nationwide preliminary injunction that stayed all deadlines to comply with the CTA's Beneficial Ownership Information (BOI) reporting requirements. 
  • A decision from the Fifth Circuit Federal Court of Appeals on December 23, reversed the national stay, requiring reporting companies to file BOI with FinCEN by January 13.
  • By December 26, the Fifth Circuit Court put the rule on hold again, pending completion of court action. 


As it stands, BOI registrations are being accepted on a voluntary basis, and the issue remains fluid. Check the FinCEN Beneficial Ownership Information page (linked below) for the most recent status and compliance dates. 

Visit FinCEN BOI Site 

NCUA Addresses Fee Practices


The NCUA put federally insured credit unions on notice in mid-December by issuing a Letter to Credit Unions, titled Consumer Harm Stemming from Certain Overdraft and Non-Sufficient Funds Fee Practices. The letter notes that credit unions that assess overdraft or NSF fees that members cannot reasonably anticipate or avoid may be exposing themselves to "heightened reputational, consumer compliance, third-party, and litigation risk."


Here are a few practices the agency felt created exposure:

  • Authorize Positive, Settle Negative Overdraft Fees
  • Multiple NSF Representment Fees
  • Returned Deposited Item Fees; and
  • Other Overdraft Practices, like insufficient or inaccurate fee disclosures and ordering transactions to maximize fees


The letter suggested risk management principles a credit union with an NSF or overdraft program could consider to reduce the risk of legal challenges. They noted NCUA does not expect credit unions to cease offering overdraft programs designed to assist your members in managing cash flow needs, and also noted supervisory or enforcement actions they need to take could include restitution to harmed members.

Read NCUA Letter 

Overdraft Rule Announced, Challenged


On December 12, the CFPB issued a final rule that amends Regulations Z and E to include overdraft credit offered by very large financial institutions (those over $10B in assets) and imposing an effective date of October 1, 2025.


The final rule applies Regulation Z to very large financial institutions’ overdraft credit by updating two regulatory exceptions from the definition of finance charge.


  1. The final rule updates an exception that provides that a charge for overdraft is not a finance charge if the financial institution has not previously agreed in writing to pay items that overdraw an account. The rule updates this exception by limiting it to only overdraft credit that is provided at or below costs and losses. The final rule provides a financial institution the ability to determine whether an overdraft charge is at or below costs and losses by either: (1) calculating its own costs and losses using a standard set forth in the rule; or (2) relying on a benchmark fee of $5. Overdraft that incurs charges that exceed costs and losses is currently non-covered overdraft credit, but it will become covered overdraft credit when this rule becomes effective.
  2. The final rule updates a related exception that provides that a charge imposed in connection with an overdraft credit feature is not a finance charge if the charge does not exceed the charge for a similar transaction account without a credit feature. The final rule updates this provision by clarifying what is and is not a comparable charge. 


America's Credit Unions has joined other national groups in challenging the rule in court and advocating for consistent interpretation of Reg. Z and consumer choice in using overdraft products. We anticipate more action in the coming months and will update you as it progresses.

OFAC Record Retention

An America's Credit Unions compliance blog discusses the probability that OFAC record retention may change from 5 to 10 years in March 2025 and how to plan for it.



Postal Fraud Tips

If you are educating staff or members on fraud trends and how to prevent being a victim, add the US Postal Inspection Service site to your list of resources.

Minimum Wage in MT

The minimum wage in Montana increased to $10.55 an hour at the state of 2025. While you are not required to use the poster, you can find a current version here.

FinCEN Fraud Schemes


FinCEN warns that the agency name, insignia, and authorities are being used in fraud schemes for BOI reporting, MSB registration, more.

CFPB Alerts on Credit Cards


The CFPB issued a Circular to note that credit card issuers may violate the law if card rewards are devalued, reduced, or inhibited from redemption..

2025 BSA Training Date

The 2025 BSA Conference hosted by NASCUS & America's Credit Unions will be Nov. 4-6 in Denver, CO. Mark your calendars if you plan to attend.


2025 Mileage Rates Out


The IRS announced their mileage rates for 2025, and most were increased from 2024 levels, including the standard going up to $.70/mile.

Zelle Owner Banks Sued


The CFPB went after the three large national banks that own Zelle in court for fraud losses and failure to protect consumers..

Signage Checklist 2024

The compliance signage checklist has been updated for new thresholds and links. You can use it to check branch or department signage.


A Few Thoughts



The year is off to a busy start with the Montana Legislature now in session, a new federal administration about to take over, and the CFPB keeping us all busy with their last minute enforcement actions and fines. Don't forget about the tools you have access to through your affiliation with Montana's Credit Unions. You can find them in the Risk Management section of our website.


If you didn't get enough of the Bank Secrecy Act with our annual email training series last month, you can also find an updated BSA Staff webinar on our Compliance Training Tools page. The BSA email archive is there, too, and an OFAC email series is planned for later this month. We anticipate some updates may be needed as the year progresses and the new federal administration makes decisions. Reach out any time with questions.



~Donya


Donya Parrish

VP- Risk Management

donya@mcun.coop

(o) 406.324.7374 |(c) 406.459.3497

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