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Avoid penalties--report on time, CUNA reminds CUs
WASHINGTON (4/4/14)--First quarter Call Reports are due to the National Credit Union Administration April 25, and that deadline must be met to avoid a potential civil money penalty, the Credit Union National Association is reminding credit unions.
 
The NCUA put late-filers on notice in January with a Letter to Credit Unions (14-CU-03). The agency called filing tardiness a "a serious problem" that impacts its ability to conduct effective off-site supervision and drains agency resources. Late filings also delay the release of quarterly industry data to the general public.
 
"The NCUA has made it abundantly clear that it will not condone late reports any longer," said CUNA Assistant General Counsel Lance Noggle. 
 
"The agency, in effect, fired a warning shot last quarter by sending late-filers a warning letter. And the warning is that any subsequent late filings could  be subject to civil money penalties," Noggle added.
 
Potential penalties for late filers include:
  • Up to a maximum of $2,000 per day for each day a required report is "minimally" late or contains uncorrected false/misleading information if the late or false/misleading filing is unintentional and the credit union has reasonable procedures in place to avoid such errors;
  • Up to a maximum of $20,000 per day for each day a required report is late or contains false/misleading information if the late or false/misleading filing is not covered by the "unintentional" safe harbor outlined above; or
  • Up to a maximum of $1 million, or 1% of total assets, whichever is less, per day if a federally insured credit union knowingly or with reckless disregard for accuracy submits a false or misleading report and fails to correct it.
To determine the size of the fine, the NCUA said it will consider:
  • The size of financial resources and good faith of the credit union;
  • The gravity of the violation;
  • The history of previous violations; and,
  • Other matters as justice may require regarding the circumstances of late or false/misleading submissions, such as natural disasters and incapacitation of key employees.
Proceeds from the fines will go to the U.S. Treasury, the NCUA said.
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