On Aug. 2, RUS CB discussed new requirements to enter the market.
RUS CB noted bill amending rules for improving regulation in the area of creation, reorganization financial recovery/liquidation of consumer credit cooperatives (CCC).
Key Points
Credit consumer cooperatives (CCCs) will have to pass the self-regulatory organization filter in order to be included in the register of RUS CB, which will strengthen control when CCCs enter the market and help increase the transparency of the industry.
Requirements are established for business reputation and qualifications of cooperative managers - for example, they cannot be those who are guilty of bankruptcy fraud.
A procedure for suspending activities of unscrupulous credit unions is introduced to remove such unions from the market by removing them from the RUS CB register.
Effectiveness
The law will come into force in Feb. 2025.
Aug. 2024 Law Issued
On Aug. 8, 2024, RUS GVT issued law 254-FZ for improving regulation in the area of creation, reorganization financial recovery/liquidation of consumer credit cooperatives.
The law enters into force on Feb. 1, 2025 (180 days after official publication).
Aug. 9, 2024 RUS FIU Update
On Aug. 9, 2024, RUS FIU also announced that RUS GVT issued published law 254-FZ.
Regulators
RUS CB; RUS FIU; RUS GVT
Entity Types
Bank; CNSM; CU
Reference
PR 8/9/2024; PR, Law 254-FZ, 8/8/2024; PR, 8/2/2024; Bil 232696-8
