II 

117TH CONGRESS 

2D SESSION S. 4698 

To amend the Federal Credit Union Act to modify requirements relating 

to the regulation and examination of credit union organizations and 

service providers. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2022 

Mr. OSSOFF (for himself, Ms. LUMMIS, and Mr. WARNER) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Credit Union Act to modify requirements relating to the regulation and examination of credit union organizations and service providers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Improving Cybersecu5 rity of Credit Unions Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Until 2001, the National Credit Union Ad9 ministration (referred to in this section as the 


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1 ‘‘NCUA’’) maintained third-party examination au2 thority over credit union organizations. 

3 (2) As of the date of enactment of this Act, 

4 other Federal and State bank supervisors maintain 

5 third-party examination authority over bank service 

6 companies pursuant to the Bank Service Company 

7 Act (12 U.S.C. 1861 et seq.). 

8 (3) The Government Accountability Office, the 

9 Financial Stability Oversight Council, and the In10 spector General of the NCUA have all requested the 

11 restoration of the NCUA’s third-party vendor au12 thority. 

13 (4) As of the date of enactment of this Act, sig14 nificant cybersecurity threats threaten credit unions 

15 and the economy of the United States. 

16 (5) By giving the NCUA examination parity 

17 with other Federal and State bank supervisors, and 

18 restoring third-party examination authority to the 

19 NCUA, this Act, and the amendments made by this 

20 Act, will protect credit union customers and 

21 strengthen credit unions against cybersecurity risks, 

22 privacy violations, and anti-money laundering con23 cerns. 


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1 SEC. 3. REGULATION AND EXAMINATION OF CREDIT UNION 

2 ORGANIZATIONS AND SERVICE PROVIDERS. 

3 (a) IN GENERAL.—The Federal Credit Union Act (12 

4 U.S.C. 1751 et seq.) is amended by striking section 206A 

5 (12 U.S.C. 1786a) and inserting the following: 

6 ‘‘SEC. 206A. REGULATION AND EXAMINATION OF CREDIT 

7 UNION ORGANIZATIONS AND SERVICE PRO8 VIDERS. 

9 ‘‘(a) REGULATION AND EXAMINATION OF CREDIT

10 UNION ORGANIZATIONS.— 

11 ‘‘(1) GENERAL EXAMINATION AND REGU12 LATORY AUTHORITY.—A credit union organization 

13 shall be subject to examination and regulation by the 

14 Board to the same extent as an insured credit union. 

15 ‘‘(2) EXAMINATION BY OTHER BANKING AGEN16 CIES.—The Board may authorize any of the fol17 lowing entities to make an examination of a credit 

18 union organization in accordance with paragraph 

19 (1): 

20 ‘‘(A) Any Federal regulatory agency that 

21 supervises any activity of a credit union organi22 zation. 

23 ‘‘(B) Any Federal banking agency that su24 pervises any other person who maintains an 

25 ownership interest in a credit union organiza26 tion. 


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1 ‘‘(b) APPLICABILITY OF SECTION 206.—A credit 

2 union organization shall be subject to the provisions of 

3 section 206 as if the credit union organization were an 

4 insured credit union. 

5 ‘‘(c) SERVICE PERFORMED BY CONTRACT OR OTHER6 WISE.—Notwithstanding subsection (a), if an insured 

7 credit union or a credit union organization that is regu8 larly examined or subject to examination by the Board, 

9 causes to be performed for itself, by contract or otherwise, 

10 any service authorized under this Act, or in the case of 

11 a State credit union, any applicable State law, whether 

12 on or off its premises— 

13 ‘‘(1) such performance shall be subject to regu14 lation, examination, and enforcement by the Board 

15 to the same extent as if such services were being 

16 performed by the insured credit union or credit 

17 union organization itself on its own premises; and 

18 ‘‘(2) the insured credit union or credit union or19 ganization shall notify the Board, in a manner and 

20 method prescribed by the Board, of the existence of 

21 the service relationship not later than 30 days after 

22 the earlier of— 

23 ‘‘(A) the date on which the contract is en24 tered into; or 


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1 ‘‘(B) the date on which the performance of 

2 the service is initiated. 

3 ‘‘(d) ADMINISTRATION BY THE BOARD.—The Board 

4 may issue such regulations and orders as may be nec5 essary to enable the Board to administer and carry out 

6 this section and to prevent evasion of this section. 

7 ‘‘(e) DEFINITIONS.—For purposes of this section— 

8 ‘‘(1) the term ‘credit union organization’ means 

9 any entity that— 

10 ‘‘(A) is not a credit union; 

11 ‘‘(B) is an entity in which an insured cred12 it union may lawfully hold an ownership inter13 est or investment; and 

14 ‘‘(C) is owned in whole or in part by an in15 sured credit union; and 

16 ‘‘(2) the term ‘Federal banking agency’ has the 

17 same meaning as in section 3 of the Federal Deposit 

18 Insurance Act. 

19 ‘‘(f) EXERCISE OF AUTHORITY.—To minimize dupli20 cative efforts, prior to conducting any examination of a 

21 credit union organization under the authority provided to 

22 the Board under this section, the Board shall first seek 

23 to collect any information which the Board intends to ac24 quire through such examination from— 


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1 ‘‘(1) any Federal regulatory agencies that su2 pervise any activity of that credit union organiza3 tion; and 

4 ‘‘(2) any Federal banking agency that super5 vises any other person who maintains an ownership 

6 interest in that credit union organization.’’. 

7 (b) APPROVAL.—Any changes to the budget of the 

8 National Credit Union Administration Board as a result 

9 of the amendments made by subsection (a) shall be fea10 tured in a public hearing, subject to public comment, and 

11 approved by the Board. 

Æ 


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