The NCUA has issued a cease-and-desist order to the $5.8 million North Dade Community Development Federal Credit Union of Miami Gardens, Fla.
The order's 11 action items indicate the credit union violated Bank Secrecy Act regulations. The order, announced Monday, also included action items related to anti-money laundering and foreign assets control laws, and requires the credit union verify all members are within its field of membership.
Chartered in 1997, North Dade Community Development Federal Credit Union has 780 members, according to the credit union's most recent Call Report.
A copy of the order is posted on the NCUA's website.
The NCUA has been making enforcement actions public this year. In June, it released information regarding a Letter of Understanding and Agreement with the $7.4 million Valley Pride Federal Credit Union of Plains, Pa., requiring the 1,588-member credit union to correct unsafe and unsound practices.
On July 31, the agency said it had terminated a LUA with the $2.2 million Lynn Municipal Employees Credit Union of Lynn, Mass., after the credit union corrected practices that led to its troubled condition.
In a July interview with Credit Union Times, Board Member Michael Fryzel said despite the risk of a run on deposits, he supported the NCUA making LUAs public, as other financial regulators do.
“Everyone should know if their financial institution is doing a good job and everyone should have the choice as to whether they or not want to keep their money there,” Fryzel said. “We have to make sure that the LUAs, however, spell out the problem.”
If the problem is not serious, the LUA should state that, Fryzel said, adding that likewise, if a credit union has a serious problem, that should also be disclosed to members.
The NCUA already releases the names of individuals it has banned from working or volunteering for federally insured credit unions.
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