Improving Cybersecurity of Credit Unions Act
Bill: S.4698 | Sponsor: Sen. Ossoff, Jon (D-GA)
Policy area: Finance and Financial Sector

Summary:
Improving Cybersecurity of Credit Unions Act
This bill subjects credit union organizations and third-party service providers to examination and regulation by the National Credit Union Administration to the same extent as insured credit unions.

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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Cybersecurity of Credit 
Unions Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Until 2001, the National Credit Union Administration 
        (referred to in this section as the ``NCUA'') maintained third-
        party examination authority over credit union organizations.
            (2) As of the date of enactment of this Act, other Federal 
        and State bank supervisors maintain third-party examination 
        authority over bank service companies pursuant to the Bank 
        Service Company Act (12 U.S.C. 1861 et seq.).
            (3) The Government Accountability Office, the Financial 
        Stability Oversight Council, and the Inspector General of the 
        NCUA have all requested the restoration of the NCUA's third-
        party vendor authority.
            (4) As of the date of enactment of this Act, significant 
        cybersecurity threats threaten credit unions and the economy of 
        the United States.
            (5) By giving the NCUA examination parity with other 
        Federal and State bank supervisors, and restoring third-party 
        examination authority to the NCUA, this Act, and the amendments 
        made by this Act, will protect credit union customers and 
        strengthen credit unions against cybersecurity risks, privacy 
        violations, and anti-money laundering concerns.

SEC. 3. REGULATION AND EXAMINATION OF CREDIT UNION ORGANIZATIONS AND 
              SERVICE PROVIDERS.

    (a) In General.--The Federal Credit Union Act (12 U.S.C. 1751 et 
seq.) is amended by striking section 206A (12 U.S.C. 1786a) and 
inserting the following:

``SEC. 206A. REGULATION AND EXAMINATION OF CREDIT UNION ORGANIZATIONS 
              AND SERVICE PROVIDERS.

    ``(a) Regulation and Examination of Credit Union Organizations.--
            ``(1) General examination and regulatory authority.--A 
        credit union organization shall be subject to examination and 
        regulation by the Board to the same extent as an insured credit 
        union.
            ``(2) Examination by other banking agencies.--The Board may 
        authorize any of the following entities to make an examination 
        of a credit union organization in accordance with paragraph 
        (1):
                    ``(A) Any Federal regulatory agency that supervises 
                any activity of a credit union organization.
                    ``(B) Any Federal banking agency that supervises 
                any other person who maintains an ownership interest in 
                a credit union organization.
    ``(b) Applicability of Section 206.--A credit union organization 
shall be subject to the provisions of section 206 as if the credit 
union organization were an insured credit union.
    ``(c) Service Performed by Contract or Otherwise.--Notwithstanding 
subsection (a), if an insured credit union or a credit union 
organization that is regularly examined or subject to examination by 
the Board, causes to be performed for itself, by contract or otherwise, 
any service authorized under this Act, or in the case of a State credit 
union, any applicable State law, whether on or off its premises--
            ``(1) such performance shall be subject to regulation, 
        examination, and enforcement by the Board to the same extent as 
        if such services were being performed by the insured credit 
        union or credit union organization itself on its own premises; 
        and
            ``(2) the insured credit union or credit union organization 
        shall notify the Board, in a manner and method prescribed by 
        the Board, of the existence of the service relationship not 
        later than 30 days after the earlier of--
                    ``(A) the date on which the contract is entered 
                into; or
                    ``(B) the date on which the performance of the 
                service is initiated.
    ``(d) Administration by the Board.--The Board may issue such 
regulations and orders as may be necessary to enable the Board to 
administer and carry out this section and to prevent evasion of this 
section.
    ``(e) Definitions.--For purposes of this section--
            ``(1) the term `credit union organization' means any entity 
        that--
                    ``(A) is not a credit union;
                    ``(B) is an entity in which an insured credit union 
                may lawfully hold an ownership interest or investment; 
                and
                    ``(C) is owned in whole or in part by an insured 
                credit union; and
            ``(2) the term `Federal banking agency' has the same 
        meaning as in section 3 of the Federal Deposit Insurance Act.
    ``(f) Exercise of Authority.--To minimize duplicative efforts, 
prior to conducting any examination of a credit union organization 
under the authority provided to the Board under this section, the Board 
shall first seek to collect any information which the Board intends to 
acquire through such examination from--
            ``(1) any Federal regulatory agencies that supervise any 
        activity of that credit union organization; and
            ``(2) any Federal banking agency that supervises any other 
        person who maintains an ownership interest in that credit union 
        organization.''.
    (b) Approval.--Any changes to the budget of the National Credit 
Union Administration Board as a result of the amendments made by 
subsection (a) shall be featured in a public hearing, subject to public 
comment, and approved by the Board.
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