Regulatory Alerts2018-04-26 | I-18-01Interpretive Letter I-18-01: Agreements to Transfer Deposits from One Credit Union to Another
The Washington Department of Financial Institutions issued Interpretive Letter I-18-01 to clarify that state-chartered credit unions may transfer deposits to other credit unions under RCW 31.12.402(6) and 12 CFR §741.8. The letter mandates that the receiving credit union must verify member eligibility, conduct customer due diligence under the Bank Secrecy Act, and manage federal deposit insurance limits. It further advises that while NCUA approval is not required for transactions between federally insured institutions, the receiving entity should allow affected members to withdraw funds without penalty to address potential insurance limit exceedances.
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