Administrative Order: In the Matter of Live Life Federal Credit Union

21-0105-ER
Administrative Order: In the Matter of Live Life Federal Credit Union
First Name
Live Life Federal Credit Union
Last Name
N/A
Relationship
Live Life Federal Credit Union
Institution
Live Life Federal Credit Union
City
Fraser
State
Michigan
Year
2021
Docket Number
21-0105-ER

STIPULATION AND CONSENT TO CEASE AND DESIST ORDER

The National Credit Union Administration Board ("NCUA"), by and through its undersigned Regional Director, and Live Life Federal Credit Union ("Credit Union") 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’s 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. Pursuant to a vote of the Credit Union’s Board of Directors, which is incorporated herein by reference, the Credit Union consents to the issuance by the NCUA of this Order. The Credit Union consents to the following terms and conditions of the Order and to take the following actions:
    1. Implement an automated system to effectively monitor and identify all transaction for suspicious activity in accordance with 31 C.F.R. §1020.210(a)(2)(v)(B), by April 30, 2021, and ongoing. Your automated compliance and suspicious activity monitoring system must include functions to support your compliance with FinCEN requirements for Marijuana-Related Businesses (“MRB”). At a minimum, this includes:
      1. Reconciliation of MRB Point of Sale, METRC, or accounting system data relative to member deposits.
      2. Ongoing monitoring of adverse public information affecting MRBs.
      3. Timely verification of changes in licensure status, including notification of a lapse in an MRB's state licensure.
      4. Systematic monitoring of unusual Automated Clearing House or wire activity for MRB accounts.
      5. Monitoring of FinCEN "Red Flags" outlined in FIN-2014-G001, "BSA Expectations Regarding Marijuana-Related Businesses."
    2. Engage a third party to validate your automated compliance and suspicious activity monitoring system simultaneously with the implementation of this system.
    3. Immediately file all Suspicious Activity Reports (“SARs”) in accordance with 31 C.F.R. §1020.320. This includes continuous and initial MRB SARs. Develop and implement a system to ensure all SARs are filed accurately, completely, and on time by March 31, 2021.
    4. Immediately develop and implement a system to ensure all Currency Transaction Reports are filed accurately in accordance with 31 C.F.R. §1020.311.
    5. Immediately cease opening new MRB accounts.
    6. Cease your Money Services Business (“MSB”) program by March 15, 2021. This includes suspending transactional activity on existing MSB accounts.
    7. Engage a qualified third party to perform a retrospective review of your MSB activity to determine the existence of suspicious activity warranting a SAR filing by March 15, 2021. At a minimum, the review must evaluate the criteria outlined in FIN- 2019-A003, "Advisory on Illicit Activity Involving Convertible Virtual Currency." File any SARs recommended by the third party.
  4. Modification. The Credit Union and the NCUA agree that the above items in the preceding paragraph will remain in effect unless modified in writing by the NCUA 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 the Cease and Desist Order as provided for in Section 206 of the Federal Credit Union 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 Cease and Desist Order or otherwise challenge the validity or legality of the Order.
  6. Finality. The Cease and Desist Order will be issued pursuant to Section 206(e) of Federal Credit Union 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 Live Life Federal Credit Union, execute this Stipulation and Consent to Cease and Desist Order.

 

FOR LIVE LIFE FEDERAL CREDIT UNION:

/s/


President, Board of Directors

2/19/2021


Date

 

FOR THE NATIONAL CREDIT UNION ADMINISTRATION BOARD

/s/


John E. Kutchey
Regional Director, Eastern Region

2/22/2021


Date

Last modified on
02/26/21