The National Credit Union Administration (NCUA) recently
announced it will reinstate civil money penalties for credit unions that fail
to submit timely call reports, effective Jan. 1, 2024.
NCUA Form 5300 Call Reports provide details on a credit
union’s financial condition, assisting credit union examiners in conducting
supervisory activity, evaluating performance and ensuring compliance with
regulatory requirements.
“The program was suspended after the December 2019 cycle due
to the COVID-19 pandemic,” NCUA Chairman Todd Harper said in a press release.
“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.”
The December 2023 Call Report cycle will be the first subject
to the newly reinstated penalties and will be due by 11:59:59 p.m. EST, Jan.
30, 2024, the agency stated.
To assist credit unions in avoiding a penalty, the NCUA will
send a reminder to credit unions with outstanding call reports a week prior to
the due date.
The NCUA noted it considers extenuating circumstances for
late submissions and will weigh mitigating factors outlined in Section 206 of
the Federal Credit Union Act when assessing penalties. 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.
Additional information on filing credit union call reports
is available on the NCUA
website.