Regulations Burry CUs

ARLINGTON, Va. – Credit unions are almost unanimous (97%) that they spend more time complying with regulations than they did five years ago, and just a few (5%) believe the situation will improve over the next year, according to a new survey by NAFCU. The monthly Flash report found that the average credit union spends 5% of its staff time on regulatory compliance and as many as 25% of credit unions spend at least half of their staff time on regulatory issues. Almost all of respondents (91%) say compliance with the Bank Secrecy Act is the most burdensome regulation. Small minorities identified Reg Z as the most burdensome (3%); Reg E, the USA Patriot ACT, and NCUA/FASB accounting standards (2%). Most of the credit unions surveyed do their compliance work in-house, but compliance outsourcing is becoming more popular, with 25% of respondents say they outsource as much as 15% of their regulatory work.