ICBA urges Form 990s for credit unions following embezzlement scandal

With a major embezzlement scandal at a tax-exempt credit union generating headlines, ICBA renewed its call to require federal credit unions to file Form 990s like nearly all other tax-exempt organizations.

Background: As reported by national and local media outlets, the former president and CEO of a tax-exempt credit union in Jackson, Miss., allegedly embezzled an estimated $95 million from the institution before the National Credit Union Administration placed it into conservatorship for unsafe and unsound practices.

ICBA View: In a national news release, ICBA said requiring federal credit unions to file Form 990s could have helped expose the alleged fraud in a timely fashion.

Statement: ICBA President and CEO Rebeca Romero Rainey said ICBA has long warned of the dangers of allowing tax-exempt credit unions to operate with lax oversight and limited transparency. “Enough is enough—it is past time for policymakers to take action to rein in credit union mission creep and market overreach,” she said.

Recent Advocacy: ICBA recently told the Treasury Department that federal credit unions should be required to file Form 990, which would promote transparency and public accountability by placing detailed financial and governance information in the hands of credit union members, policymakers, and the general public.

Administration Scrutiny: The Treasury Department in April announced that the IRS plans to revise the Form 990 to improve transparency related to tax-exempt organizations.

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