The Bagumbayan Credit Union of Chicago has consented to a cease-and-desist order from the NCUA that reveals shortcomings in internal controls.
Chartered in 1964, Bagumbayan currently has just 43 members and total assets of $75,253.
Bagumbayan showed a net loss of $3,480 in June 2013, according to its latest financial performance report posted on the NCUA website. The credit union charged off 48.28% of its loans in the second quarter of 2013. It also reported 16.86% in delinquent loans during the same period, down from 33.17% in June 2012.
In 2012, Bagumbayan was issued three suspension orders by the Illinois Department of Financial & Professional Regulation.
“The credit union continues to operate in an unsafe and unsound manner,” said the third order dated Nov. 21, 2012.
The NCUA issued a press release on Tuesday outlining the actions required by its order, which include:
- Cease and desist allowing unapproved officials to attend board meetings, serve on committees, or perform any and all managerial functions, operational functions, or both.
- Refrain from implementing any aspects of a proposed business plan involving the establishment of new lines of business, including money remittance services.
- Resolve all recordkeeping issues and Bank Secrecy Act violations detailed in exam reports.
- Ensure secure storage and transmission of all member data consistent with the NCUA's Rules and Regulations for safeguarding member information.
- Comply with all lawful directives of the state regulator, including all elements of the suspension order issued by that agency.
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