NCUA’s CUSO Registry will be available for CUSOs to begin registering on February 1, 2016. CUSOs must register between February 1 and March 31.
Federally insured credit unions are required to enter into written agreements with any CUSOs they make loans to or invest in. Each agreement must be signed before a credit union invests in or lends to a CUSO. The written agreement must obligate the CUSO to annually provide certain information directly to NCUA, and the state supervisory authority where applicable. This required information will be collected from CUSOs through the CUSO Registry. In the event a CUSO fails to register, credit unions may not make additional investments or loans to the CUSO until the CUSO satisfies the annual registration requirement.
Beginning in mid-2016, credit unions and examiners can search the CUSO Registry to determine if a CUSO has registered. Once the search function is available, your credit union may not make a new loan to or investment in a CUSO that has not satisfied the annual registration requirement. NCUA examiners will continue to incorporate a review of your credit union’s compliance with the CUSO rule during the examination. If NCUA identifies that your credit union is doing business with a CUSO that has failed to satisfy the annual registration requirement, NCUA will notify the CUSO of the need to register. The CUSO will then have 30 days to complete registration before NCUA notifies credit unions that any new investments and loans to the unregistered CUSO are impermissible.
