Compliance & Risk

Compliance & Risk

Have questions? Contact the Compliance & Risk Team!
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As an integral part of the Internal Audit team, Compliance & Risk exists because the financial landscape is complex, heavily regulated, and constantly shifting. We aim to be the functional bridge between complex law and daily operations.

We are constantly digesting news that impacts the credit union industry and investigating government policy to ensure all parties are compliant. Additionally, we vet new ideas and processes to ensure they are legally sound and ready for execution. Our focus is to review regulations and conduct research, so that we may lighten the administrative burden of our colleagues.

Compliance & Risk is a collaborative partner with all the teams at CU*Answers, and we hope to bring that connection to your credit union as well. We serve our teams who serve our clients, who in turn are better able to serve the membership. At the end of the day, our goal is to help you and your vendors find the safest path to “yes.”

This cooperative philosophy drives us forward, and we hope to bring a positive impact to your credit union. Contact us at complianceandrisk@cuanswers.com to discover solutions that best fit your needs.

Examination News Initiative

Audit and Risk Assessment

Frequently Answers Questions
Can CU*Answers assist us in answering examiner questions about our risk assessment and how it applies to Audio Banking and Online Banking?
How often and when does the system run members through an OFAC scan? Is it just when new memberships are opened?
Does the weekly scan of OFAC include Non-Members?
Is there a way to run an OFAC scan on a non-member?
When joint owners are created, is there a scan against the OFAC file?
What types of transaction patterns can you create for Abnormal Activity Monitoring?
What is the Audit Tracker?
What does AIRES mean?
What are the procedures for the process to perform a member account verification audit?
What information can be provided to assist a credit union for a risk assessment of the Audio Banking system?
From a risk assessment standpoint (i.e., risk of money being moved from a member’s account or loss of personal identity), are there many features in the CU*Answers audio banking system that are similar to online banking?
What are the layers of authority for a Database Administrator who manages a Data Warehouse?

Back Office and Member Service

Frequently Answers Questions
When does CU*Answers receive the ACH files that are available throughout the day?
Is there a report to view that displays distribution numbers that need to be changed if a payroll company changes their change payroll numbers (ACH company ID, distribution ID)? And if so, what updates need to be changed?
What precautions should be taken when adding distribution records for a member who has more than one deposit coming in from the same institution but for different household members, for example Social Security deposits?
What happens to previous information when a new member account is created from an older or closed membership?
Is there a tool where I can research a TR Journal Entry?
What is the file that shows how many members have subscribed to e-Alerts?
How does CBX process check holds?
What is a Source of Receipt (SOR)?
Does Employee Account Security control an employee’s access to an account from everywhere on CBX? For example, how about Payroll or ACH?
What is not affected by 7-day back-office processing? What do ACH transfers, OTB transactions, Remote Deposit Capture (RDC), and eAlerts have in common?
Is Personal Internet Branch (“PIB”) the same as multi-factor authentication?

EFT and Instant Payments

Frequently Answers Questions
Does CU*Answers have to comply with the recently published Apple Pay push provisioning rules?
Explain the way that CBX secures funds for debit card authorizations?
Will we know if a bill is to be paid by ACH or check in “It’s Me 247” Bill Pay (Fiserv)? If so, how? How will stop payments be handled?
What choices do I have for controlling whether or not my ANR negative balance limits are used when authorizing and paying debit card and ATM transactions?
Does CU*Answers produce the IRS Form 1099-K form that states that companies that process credit and debit card payments are required to submit?
Why would a member who has elected to opt out per Reg. E receive a non-return fee on a debit card transaction?
With Co-Op national shared branching, is there a way to identify transactions as cash or check deposits, the way in-network ATMs show in transaction history?

Lending and Loans

Frequently Answers Questions
What types of things might prevent a primary borrower or additional signer from being applied by the bureau?
Does CBX support Risk-Based Lending strategies?
We have a loan serviced by another financial institution that we are participating in. Our auditors have asked us to make sure that it is viewed as a loan, but we have it configured to be an investment on CBX. How should this be configured?

Retention, Expiration, and Holds

Frequently Answers Questions
How long are things such as transaction history, general ledger, check history, and credit report data retained?
How long are cancelled check images retained in “It’s Me 247” online banking?
Per Regulation CC, check holds are based on business day. Does CBX check hold feature only count business days in its calculation?
Can online banking passwords be set to expire?
How long is the timeout setting for my CBX workstation session and for printer sessions?
Will passwords expire in CTE?

Who Are We?

Joshua Velasquez has been a part of CU*Answers as the Compliance Analyst for the Internal Audit team since November 2024.

As a graduate of the University of Detroit Mercy School of Law, Joshua applies principles of critical thought and legal interpretation to solve issues that arise within the compliance landscape. The Internal Audit team’s goal is to serve the individuals of CU*Answers by lightening their compliance and regulatory burdens and advising the network to the best of their ability. He firmly believes in being a collaborative partner.

Joshua enjoys being a valued resource and discussing best practices with partners, while referencing the law to make informed decisions. He has fully adopted the cooperative philosophy and appreciates the joint efforts that make the credit union industry so special.

Alex Fleming serves as a Risk and Legal Analyst at CU*Answers. After serving in the US Army, Alex pursued a dual-degree program at Stetson University College of Law, graduating in 2024 with his JD and MBA. Because compliance often exists at the intersection of law and business, Alex is uniquely qualified to interpret changing laws and regulations and to provide credit unions with practical guidance. While he continues to support CU*Answers on internal matters, Alex is committed to helping credit unions navigate their most pressing compliance challenges as the regulatory landscape continues to evolve.

Updated
March 23, 2026