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Credit Union Times
APRIL 27, 2016 | VOL. 27 | NO. 14 | CUTIMES.COM
PAYMENTS
ATM EMV Deadline Looms
The next major step for merchants and card issuers in the
move from magstripe to chip
technology is looming: The liability shift deadline for ATMs
and self-service fuel dispensers.
The liability shift deadline for
ATM transactions made with
MasterCard branded credit and
debit cards is Oct. 1, 2016; Visa’s
deadline is Oct. 1, 2017.
Experts said as credit unions
continue to migrate their magstripe plastic to chip cards, they
should not neglect the impending deadline for making ATMs
EMV ready. They must also prepare to educate members on the
new ATM technology and emphasize chip card benefits.
“Every financial institution or
anyone that has an ATM should
be looking to upgrade their
ATMs to meet that upcoming liability shift,” Art Harper, director
of card payment solutions at the
St. Petersburg, Fla.-based payments CUSO PSCU, said.
One expert emphasized the
ATM transition isn’t a mandate.
It’s a liability shift, and issuers
and merchants have the option
not do it.
“If the ATM owner has gone
through the cost of certifying it
and it is a magstripe card that
has been compromised, then
the liability goes to the issuer of
that card, the credit union or the
bank,” Jamie Topolski, director
of alternative payment strategies
at the Brookfield, Wis.-based
core processor Fiserv, Y15
Must Reads FOCUSREPORT:
SOCIAL MEDIA
Some credit unions have
converted social media
engagement into new
memberships and accounts.
However, marketers face
compliance hurdles as they create
social media campaigns. Learn
more in this Focus Report. Y8
FOM and the
ABA
Bankers have no
business critiquing
the NCUA’s FOM
proposal. Y12
Women to
Watch
SAFCU’s Glenn
takes control of
her credit union’s
future. Y6
CUA Board Chairman
Debbie Matz’s departure is nearing while
Congress bickers over
NCUA Board Member J. Mark McWatters’ nomination to the Export-Import Bank board. As a result,
how the NCUA board it will operate in a post-Matz era is unknown.
Currently, the Ex-Im Bank is
operating under constraints, be-
cause it only has two board mem-
bers. The five-seat board cannot
approve transactions totaling
more than $10 million without a
quorum.
Should Congress move on McWatters’ nomination to the Ex-Im
Bank board, it would leave the
NCUA with a single Democrat
running its board: Vice Chairman
Rick Metsger.
The Politics Involved
Politics played a heavy hand
when Senate Banking Committee
Chairman Richard Shelby (R-Ala.)
refused to budge on moving nom-
inations out of his committee. He
has said he wants to see a nomi-
nation for the vice chairman of
supervision at the Federal Reserve
first, leaving Mc Watters’ nomina-
tion in limbo.
Senate Majority Leader Mitch
McConnell (R-Ky.) has been ap-
plying pressure on Shelby to take
up the nomination, but Shelby has
defied the majority leader.
Industry Ponders NCUA Board’s Fate
J. DANIEL YOUNG
dyoung@cutimes.com
WASHINGTON
he Panama Papers en-
snared foreign heads
of state and financial
institutions, but they’re
also likely to have a ripple effect in
the U.S., with enforcement agen-
cies sharpening their focus on
anti-money laundering and Bank
Secrecy Act reviews.
That may cause some sleepless
nights for credit union executives,
who already are feeling the weight
of AML and BSA compliance, experts said.
“Typically, credit unions have
a low risk profile,” Robert Pargac,
a director for Navigant’s Global
Investigations and Compliance
practice, said. Navigant is a Chica-go-based consulting firm.
However, that could make
small, low profile credit unions
even more attractive to financial
criminals, Lawrence Reaves, president of the Kernersville, N.C.-based consulting firm Advanced
Fraud Solutions, said.
“The bad guys are looking for
the weakest link,” he said. “They
start to go downstream and look
at the smaller institutions.”
Cindy Williams, vice president
of regulatory compliance for Pol-
icyWorks, a Des Moines, Iowa-
based compliance con-
Tightened
AML/
BSA Rules
Hitting CUs
DAVID BAUMANN
dbaumann@cutimes.com
COMPLIANCE
Y16 Y17