Civil Money Penalties Reinstated by NCUA After Pandemic Pause
The agency says credit unions must file Form 5300 Call Reports on time or face penalties.
Four years after suspending its civil money penalties for credit unions not filing NCUA Form 5300 Call Reports on time, the agency is reinstating those penalties beginning with the December 2023 Call Report deadline.
The NCUA paused the penalties during the COVID-19 pandemic and said it’s time to bring back the enforcement program.
“The program was suspended after the December 2019 cycle due to the COVID-19 pandemic,” NCUA Chairman Todd Harper said. “It is now time to reinstate the program to ensure we provide credit union members, the financial services stakeholders, other regulators and the public with the most accurate and up-to-date quarterly Call Report data on a timely basis.”
According to a statement from the NCUA Tuesday, the first reporting cycle under the reinstated program will coincide with the deadline for the December 2023 Call Report, which is before midnight Eastern time on Jan. 30, 2024.
The NCUA said it will send a reminder to credit unions with outstanding Call Reports one week before the due date.
The NCUA will also consider extenuating circumstances and will weigh mitigating factors outlined in Section 206 of the Federal Credit Union Act when penalties are assessed. These mitigating factors include:
- The size of financial resources and good faith of the credit union.
- The gravity of the violation.
- The history of previous violations.
- Other matters regarding the circumstances of late or false or misleading submissions, such as natural disasters and the incapacitation of key employees, among other factors.
The agency has updated its Call Report website for credit unions needing more information on the filing process and deadlines.