Wednesday, October 2, 2013

Cease and Desist Order Issued to Bagumbayan Credit Union

The National Credit Union Administration has issued a cease and desist order to Bagumbayan Credit Union of Chicago.

On three separate occasions in 2012, the Illinois Department of Financial & Professional Regulation suspended the operations of the credit union for substantial non-compliance with the state's credit union act.

The NCUA consent order requires the credit union to undertake several actions, including:

1. Cease and desist allowing unapproved officials to attend board meetings, serve on committees, or perform any and all managerial functions, operational functions, or both.

2. Refrain from implementing any aspects of a proposed business plan involving the establishment of new lines of business, including money remittance services, the sale and/or marketing of insurance product, establishment of non-vessel operating cargo company, or pursuit of loans secured with foreign collateral.

3. Resolve all recordkeeping issues and Bank Secrecy Act violations detailed in exam reports.

4. Ensure secure storage and transmission of all member data consistent with NCUA’s Rules and Regulations for safeguarding member information.

5. Comply with all lawful directives of the state regulator, including all elements of the suspension order issued by that agency.

Read the cease and desist order.

1 comment:

  1. This CU has $75 thousand in assets and 43 members. And this is the C&D NCUA chooses to publicize. Just so they can pretend are transparent? They may as well have just sent the 43 members a letter.



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