Improving Cybersecurity of Credit Unions Act

“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.”