NCUA Clears Special Accounts for Immigrants

ALEXANDRIA, Va. – NCUA approved a request yesterday to provide non-dividend paying accounts to members who do not have a Social Security number or other taxpayer identification number. The ruling will make it possible for immigrants without legal documentation to establish mainline financial accounts. The accounts, however, NCUA said in a legal opinion letter to West Denver Community CU, must comply with all of the applicable regulations, like the Truth in Savings Act. While the FCU Act allows credit unions tp pay dividends on share accounts, it does “not require dividends be paid on every type of share account,” said NCUA. Such accounts are being seen by credit unions as a away of bringing unbanked immigrants into the mainstream, even if they have not established residency in the U.S.