Bondable Losses and Fraud

In the course of an examination, an examiner may determine that criminal activity or a bondable loss has occurred that may affect the bondability of an employee or official. In these cases, the examiner should inform their SE, provide details to the board of directors, and obtain an agreement for immediate action. The board is responsible for notifying the bond company, federal and local authorities, the SSA (as appropriate), and the relevant NCUA regional office.

In addition, a credit union must complete a SAR whenever it suspects criminal activity as required by FinCEN. Examiners should determine whether or not the credit union has filed a SAR within the required time, when necessary. Regional offices can obtain a report of SARs filed from FinCEN; examiners may check with the regional office to verify that SARs have been filed, when warranted.

Last Updated on October 09, 2020