Administrative Order: In the Matter of Inter-American Federal Credit Union

STIPULATION AND CONSENT TO CEASE AND DESIST ORDER

The National Credit Union Administration Board ("NCUA"), by and through its Regional Director, Eastern Region, and Inter-American Federal Credit Union ("Credit Union"), by and through its Board of Directors, hereby stipulate and agree as follows:

1. Consideration. The NCUA is of the opinion that grounds exist to initiate an administrative cease and desist action against the Credit Union pursuant to Section 206(e) of the Federal Credit Union Act (“Act”), 12 U.S.C. § 1786(e). The Credit Union, without admitting that said grounds exist (except those set forth as to jurisdiction in paragraph II), desires to avoid the time, cost and expense of administrative litigation. Accordingly, the Credit Union consents to this Stipulation and Consent to Cease and Desist Order (“Order”) and its issuance by the NCUA.
2. Jurisdiction. The Credit Union is an "insured credit union" within the meaning of Section 101 of the Act, 12 U.S.C. § 1752(7), and NCUA Rules and Regulations (“Rules”), 12 C.F.R. §.747.0(b). Pursuant to Section 206 of the Act, 12 U.S.C. § 1786, and Part 747 of the Rules, 12 C.F.R. Part 747, the NCUA is the appropriate Federal agency to maintain enforcement proceedings against such an insured credit union. Therefore, the Credit Union is subject to the authority of the NCUA to initiate and maintain proceedings against it.
3. Consent. The Credit Union consents to the issuance of this Order by the NCUA. The Credit Union further consents to the following terms and conditions of the Order and to take the following actions:
   1. Develop and implement a record keeping system to properly monitor and identify all transactions for suspicious activity and file Suspicious Activity Reports in accordance with 31 C.F.R. § 1020.320, by June 30, 2022, and ongoing.
   2. Administer Bank Secrecy Act training to all Credit Union officials and staff, 12 C.F.R. § 748.2 (c)(4), by June 30, 2022.
   3. Develop written procedures to follow the Credit Union’s Office of Foreign Asset Control (OFAC) Policy and check all parties to transactions against the OFAC Specifically Designated Nationals list prior to completing the transaction, 12 C.F.R. § 748.2(c)(1), by June 30, 2022, and ongoing.
   4. Review and reconcile the Vizo Corporate account, and the Carver Federal Savings account. Record any necessary correcting entries to the affected Credit Union general ledger accounts by June 30, 2022. Going forward, ensure monthly reconciliations are completed by the 20th of each month for each general ledger account. Document the date of outstanding items, the name of the preparer, and the date of reconciliation. Incorporate an independent review by the Supervisory Committee. Obtain source documents for the bank and investment accounts.
   5. Research and resolve the out of balance conditions with loans, shares, cash, and undivided earnings by June 30, 2022. Obtain an AIRES share and loan download and reconcile the download to the general ledger. Provide written, supporting documentation for the resolution of all out of balance conditions by June 30, 2022.
   6. Obtain a final Supervisory Committee Audit report from a Certified Public Accountant, for the month period ending March 31, 2022, in accordance with 12 C.F.R. § 715.12(a). The audit must be presented to the Credit Union’s Board by July 31, 2022, and cover the period from August 31, 2017, to March 31, 2022.
   7. Obtain an independent member account verification effective March 31, 2022, in accordance with 12 C.F.R. § 715.8. Perform and document additional verification procedures on any members with an undeliverable account statement. The verification must include any account closed since the 2018 verification, and the results must be presented to the Credit Union’s Board by July 31, 2022.
   8. Escheat all dormant accounts to the State of New York, for the period ending March 31, 2022, in accordance with the State of New York Abandoned Property Law. The escheatment must be completed by June 30, 2022.
4. Modification. The Credit Union and NCUA agree that this Order supersedes and replaces the Consent to Cease and Desist Order signed on March 12, 2020. The Credit Union and the NCUA agree that the above items in paragraph III will remain in effect unless modified in writing by the NCUA’s Eastern Regional Director. The Credit Union agrees that any such modification shall constitute an amendment to the Order and shall be fully enforceable by NCUA.
5. Waivers. The Credit Union waives its right to an administrative hearing to this Order as provided for in Section 206 of the Act, 12 U.S.C. § 1786, and Part 747 of the Rules, 12 C.F.R. Part 747. It further waives its right to seek judicial review of the Order or otherwise challenge the validity or legality of the Order.
6. Finality. This Order will be issued pursuant to Section 206(e) of the Act, 12 U.S.C. § 1786(e). Upon its issuance, the Order shall be final, effective and fully enforceable by the NCUA.

WHEREFORE, in consideration of the foregoing, the undersigned, on behalf of the NCUA and Inter-American Federal Credit Union, execute this Stipulation and Consent to Cease and Desist Order. This document is comprised of five (5) pages, including the signature page.

FOR INTER-AMERICAN FEDERAL CREDIT UNION:

FOR THE NATIONAL CREDIT UNION ADMINISTRATION: