Recommendation: The Chairman of the National Credit Union Administration should, in coordination with the other federal banking regulators, and with input from BSA/AML examiners and other relevant stakeholders, take steps to improve examiners' ability to evaluate the effectiveness of banks' BSA/AML compliance controls with respect to money transmitter accounts. Steps may include providing updates to examination procedures, examiner training, or a combination of methods. (Recommendation 4)

Agency: National Credit Union Administration
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Chairman of the National Credit Union Administration should engage in collaborative discussions with other relevant financial regulators in a group that includes all relevant stakeholders and has defined agency roles and outcomes to address issues related to consumers' use of account aggregation services. (Recommendation 8)

Agency: National Credit Union Administration
Status: Open

Comments: In July 2018, NCUA staff indicated that staff from their agency had recently participated in a discussion forum with other federal regulators and other stakeholders on fintech, and, in particular, account aggregation challenges. They stated that they intend to continue to engage other regulators and related industry stakeholders on fintech topics and emerging technology that can have an impact on credit unions and their consumers. In October 2018, NCUA staff advised us that they have been discussing issues related to data aggregation at meetings of the Fintech Interagency Discussion Group, which includes OCC, the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Bureau of Consumer Financial Protection. In November 2019, NCUA staff said that the agency continues to participate in meetings through the Fintech Interagency Discussion Group and had taken part in a Data Symposium held by the San Francisco Federal Reserve. We plan to follow up with NCUA staff to obtain updates on these efforts and resulting outcomes in the future.

Recommendation: The Chairman of the National Credit Union Administration should formally evaluate the feasibility and benefit of establishing an office of innovation or clear contact point, including at least a website with a dedicated email address. (Recommendation 11)

Agency: National Credit Union Administration
Status: Open

Comments: NCUA officials told us that in August 2018 the agency established a working group to formally evaluate the feasibility of establishing a dedicated work unit to oversee and lead fintech and innovation efforts, including creating a website and monitoring a dedicated e-mail account. NCUA officials indicated that as of November 2019 the working group was deliberating key considerations related to establishing a dedicated work unit. We plan to follow up with NCUA staff to obtain updates on these efforts in the future.

Recommendation: The Chairman of the National Credit Union Administration should formally evaluate the feasibility and benefits to their regulatory capacities of adopting certain knowledge-building initiatives related to financial innovation. (Recommendation 15)

Agency: National Credit Union Administration
Status: Open

Comments: NCUA officials told us that, as of November 2019, the internal working group that the agency established in August 2018 was evaluating the feasibility and benefits of adopting certain knowledge-building initiatives related to financial innovation. Specifically, the working group was assessing initiatives such as stakeholder outreach, research and collaboration opportunities, grants and other technical assistance, and existing supervisory tools. We plan to follow up with NCUA staff to obtain updates on these efforts in the future.