Credit unions and banks alike have been complaining of the burden of keeping up with BSA compliance and several banks have come under stiff fines for non-compliance. FinCEN's upcoming updates to the 314(a) search program will provide financial institutions with a report to verify that they searched their records against FinCEN's database.

"This enhancement is designed to ease the obligation of compliance verification relating to 314(a) search requirements," Freis said. "By making available the option for institutions to print a search verification for each 314(a) distribution, search compliance documentation can be provided to examiners in a streamlined process, which will reduce the current record-retention load some institutions experience."

Hood Recognizes First CU Partnership Between Operation HOPE and Alliant CU

CHICAGO — NCUA Vice Chairman Rodney Hood lauded Alliant Credit Union as the first credit union to partner with Operation HOPE, a national organization promoting financial literacy during a reception celebrating the union.

Hood commended Operation Hope Chairman John Bryant for establishing the organization that runs the Banking on Our Future program and Alliant Credit Union President/CEO David Mooney as the first credit union participant. Banking on Our Future is a financial literacy initiative teaching children the basics of managing their financial futures and surviving in a global economy. The program uses a network of 1,500 trained volunteer Banker-Teachers. More information is available at www.bankingonourfuture.org.

"I believe that establishing and developing innovative partnerships between credit unions and results-oriented, outreach organizations such as Operation HOPE, Inc. is critical to meeting the needs of our nation's underserved communities," Hood said. "In fact, according to a recent study published by the Federal Reserve, it is estimated 28 million people are unbanked in the United States today, and over 45 million underserved lack adequate access to credit."

The vice chairman delivered the remarks at a reception held yesterday at the Federal Reserve Bank of Chicago in honor of the partnership and recognizing Mooney's recent appointment to the HOPE Midwestern Board. He emphasized the importance of financial literacy as a fundamental starting point to make a difference in the lives of all credit union members, particularly the underserved.

"Reaching out to the underserved is the responsibility of the entire financial services community," Hood said. "Individuals will never reach the financial mainstream unless they are aware of the services available which will empower them to do so."

He added, "The programs I know to be most effective require face-to-face counseling, as opposed to self study or telephone counseling. Operation HOPE and Alliant Credit Union are doing just that through Operation HOPE's Banking on Our

Future program."

WaMu Escapes Fine So Far in BSA Cease & Desist

WASHINGTON — Washington Mutual, the nation's largest thrift, has been slapped with a cease and desist order by the Office of Thrift Supervision for Bank Secrecy Act violations.

The C&D, to which WaMu did not admit or deny fault, does not levy any fines but outlines the steps the thrift must take to get back in the OTS' good graces. Under the stipulations, WaMu must submit an acceptable written plan to OTS to ensure against future violations and it must be fully implemented by March 31, 2008. The plan must strengthen internal controls and independent testing as well as provide adequate resources to the BSA officer.

Additionally, a compliance committee must be established to report progress to WaMu's full board on a regular basis. The progress reports will be shared with OTS.

Banks have been hit with multi-million dollar fines in recent years for BSA violations as regulators crack down. Credit unions have not been fined for BSA violations in the last few years but a couple enforcement actions have been taken as well as informal steps. The regulatory burden of BSA compliance has been a primary complaint of financial institutions as regulatory enforcement efforts have ramped up.

Fed Offers Consumers Advice on Protecting Checking Accounts

WASHINGTON — Consumers should keep five tips in mind for managing their checking accounts and safeguarding them from unauthorized usage, the Federal Reserve Board has advised.

The new publication, available at http://www.federalreserve.gov/pubs/checkingaccount/default.htm, explains that fraudsters can use account information to

create a demand draft–a remotely created check–or electronic transfer to access someone else's funds.

The Fed advises:

- Don't give your account number and bank routing information to anyone you don't know.

- Review your monthly statement.

- Notify your bank about any problems as soon as possible.

- If you don't have enough money in your account, don't write the check or

authorize the debit.

- Know your rights under consumer protection laws.

The Fed is hoping that financial institutions, consumer groups, and retailers will download and print copies for distribution to consumers. Print copies are also available from the Fed.

Iowa Fire Department CU Seized By State Regulators

DES MOINES, Iowa — State regulators seized management control last week of the $9.6 million Davenport Fire Department Credit Union with its president/CEO Thom Nelson apparently placed "on leave."

In a three-paragraph press release, the state's CU superintendent, James E. Forney gave no explanation but assured the CU's 1,350 members that funds

are safe. The CU opened in 1932, lists four full-time employees and one part-time.

The press statement said Forney, acting under Iowa law, issued an Oct. 18 order seizing the "property and business" of the CU. The statement added "it is our intent that the credit union remain open as usual to conduct business and to provide its members with the same financial services it did previously."

It was learned the CU has been under the watchful eye of examiners for months and more than a year ago a state auditor "even had his own office on the premises," said one Quad Cities CU executive.

Still a sampling of other Iowa CEOs queried by Credit Union Times said they were unaware of more recent problems at Davenport Fire and had not seen a notice of the Forney order.