Pentagon Approves New Guidelines ForOn-Base Services

Register now

TORONTO, Canada - (07/13/06) -- New guidelines approved by theDepartment of Defense Monday for the operation of on-base financialinstitutions gives credit unions a leg up on their competitors inseveral areas. The new guidelines DoD Instruction will require thatall financial education for military facilities be conductedthrough pre-authorized defense credit unions or military banks.Otherwise, all financial solicitations, such as the sale ofinsurance products, must be specifically approved by basecommanders. The new Instruction also prohibits the distribution ofliterature that competes with on-base credit unions or banks. Itwill also require all credit unions and banks operating on base toprovide financial counseling services—already a major focusof credit unions—as a key component of their financialservices offerings. “The new instruction goes about as far asyou can go in giving credit unions a franchise on-base, as far asproviding financial education,” said NAFCU President FredBecker, during the annual Defense CU Summit at last week’sNAFCU Convention. “Being a credit union comes with specialprivileges and a special responsibility you have for beingthere.”

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER