INSIDE

April 2019 • Volume 17 • Quarterly Issue 2

Register Now for EasCorp's 41st

Annual Meeting and Partnership Conference ......................................1

Federal Reserve Delays Race for Faster Payments .............................2

Expanded Currency Capability for Cross-Border Payments .................2

U.S. Privacy Regulations One Year after the GDPR................................3

Announcing Vertifi's Branch Capture v.5.0 ..................................3

Coin and Currency Reminder ........3

Audited Financial Statements and SOC Reports Available Now ...........4

Upcoming Events ............................4

DeposZip® Helpful Tips and Tricks ...............................................4

Holiday Reminder!EasCorp and Vertifi offices

will be closed on Monday, May 27, 2019,

in observance of Memorial Day.

Register Online Now for EasCorp's 41st Annual Meeting and Partnership Conference on Thursday, May 2, 2019.

Visit www.eascorp.org.

Register Now for EasCorp's 41st Annual Meeting and Partnership Conference

(Top to bottom) RegTech expert Jo Ann Barefoot, Yale Psychology Professor Laurie Santos, Dr. Scellig Stone of Boston Children's Hospital, and Rex Burkhead of the New England Patriots

EasCorp's 41st Annual Meeting and Partnership Conference is coming up on Thursday, May 2, 2019, and is held at Café Escadrille in Burlington, MA. This event features presentations on the theme Health, Wealth, and Happiness: A Credit Union Value Proposition.

We'll start the day with EasCorp's annual business meeting, including a review of EasCorp and Vertifi’s financial position and business strategies, and a cheerful celebration of our credit union community. Jo Ann Barefoot, a global thought leader on technology and regulation, will discuss how to provide your members with affordable, well-tailored, innovative, and transparent services within a compliant environment.

Next, we'll begin our Partnership Conference with a demonstration of new Vertifi services. You will learn about the psychology and practice of individual and corporate wellness from celebrated Yale University Professor Laurie Santos. Professor Santos will explore how social connections, living in service to others, and showing gratitude are at the core of happiness itself.

We'll close our day by honoring the Credit Unions Kids at Heart® Team's 20th running of the Boston Marathon. Our celebration will include a research update from Dr. Scellig Stone of Boston Children's Hospital and a visit from New England Patriots Super Bowl star Rex Burkhead.

To register, please visit the News and Events page of EasCorp's website at www.eascorp.org.

INSIDE EASCORP • SECOND QUARTER 2019 • PAGE 2

The Federal Reserve Board of Governors (Fed) has recently denied a request by NACHA, stewards of the ACH network, to add a third Same-Day ACH processing window until which time a public comment can be obtained. NACHA had hoped this third processing window would go into effect as early as September 2020, but announced this would delay the project by six months.

Changes to the Federal Reserve services that support Same-Day ACH are needed before NACHA's third processing window could go into effect. On March 12, the Fed informed NACHA that it could not meet its notification deadline in order for this new processing window to take effect in September 2020.

In October 2018, the Fed put out a request for public comment on potential actions they might take to facilitate real-time interbank settlement of faster payments. Some fear that the Fed may not be agile enough to respond to market demands. Others believe that, in the the absence of an underlying interbank infrastructure from the Fed, the private sector alone will control faster payments systems.

For additional resources, including the updated Faster Payments 101 educational primer presented by NACHA and its Payments Innovation Alliance, visit www.nacha.org.

Federal Reserve Delays Race for Faster Payments

On Monday, April 15, 22 runners on the Credit Unions Kids at Heart Team will lace up their sneakers for the Boston Marathon. This is the Team's 20th year running the Marathon to raise funds for pediatric neurological research initiatives at Boston Children's Hospital. Visit www.cukidsatheart.org to learn how you can track the team on Marathon day.

Expanded Currency Capability for Cross-Border Payments Cambridge Global Payments (CGP), EasCorp's partner for international payments services, has recently released an updated currency list which includes a series of Beneficiary Validation and Regulatory Rules for international payments. These requirements apply to both international wire transfers and International Automated Clearing House (iACH) transactions. However, validation, delivery times, documentation, and beneficiaryrequirements for cross-border payments vary significantly by processing method (wire vs. iACH) and currency unit. Meeting these requirements helps to expedite delivery and receipt of funds.

This document also includes a list of iACH currencies which will be available this year. This expansion will nearly double the currency capabilities of the iACH network to include more than 20 new currencies, and will allow for more convenient and cost-effective settlement options.

Finally, CGP now offers a new, downloadable report specifically formatted for the Verafin API for financial institutions using that BSA/AML software.

The updated currency list is available to authorized service users on the International Wires page of Ease-Link. If you have any questions, please contact David Hoang (dhoang@eascorp.org) at 800.428.1144, Ext. 3313; or Correspondent Services (corrsvc@eascorp.org), Ext. 4.

(Left to right above) Credit Unions Kids at Heart welcomes new runners Jason Fish (shown with Patient Partner Abby) and Catherine O'Leary (shown with Patient Partner Maddy and her mom Chrissy) to the 2019 Boston Marathon Team. Catherine is supported in part by Service Credit Union, a 2019 Participating Credit Union.

INSIDE EASCORP • SECOND QUARTER 2019 • PAGE 3

Over one year ago, the European Union’s General Data Protection Act (GDPR) went into affect for financial institutions. While many, large international businesses still report challenges in achieving compliance with the GDPR, and as the first GDPR fining policies are just now being introduced in European countries, it is clear that this law has had a significant impact on how organizations worldwide manage, protect, and handle personal data.

With the rise of cyber crime and following a series of high-profile data breaches, new state privacy and cybersecurity regulations, such as New York’s Cybersecurity Regulations (23 NYCRR 500), have been similarly introduced in the United States to expand on federal laws and other entities' regulatory guidelines. While state cybersecurity and data protection laws differ, current or proposed laws generally apply to businesses, service providers, and third parties that collect or process personal information of residents of that state, and, thus, have far-reaching impact beyond geographic boundaries.

One such law, the California Consumer Privacy Act (CCPA), is described as one of the most groundbreaking data security laws in the United States. The CCPA will go into effect in January of 2020, with some of the nation's most comprehensive and rigorous notice, disclosure, and consent requirements in place. Still, an amendment to the CCPA introduced on February 25, 2019, seeks to further expand the scope of the consumer private right of action. The proposed expansion would set even more stringent rules regarding the right of a consumer to access, delete, and opt out of the sale of their personal information; the right to equal service and price; and the right to know what personal information is collected, whether it is sold or disclosed and to whom.

Legislation introduced in Massachusetts, New Mexico, and Washington have incorporated concepts from the 23 NYCRR 500, CCPA, and the GDPR. And, more than eight other states have data protection laws in development.

U.S. Privacy Regulations One Year After the GDPR

Coin and Currency Reminder

All Federal Reserve Bank offices will be closed on Monday, May 27, in observance of Memorial Day. As a reminder, cash orders prepared by the Federal Reserve Bank must be placed two business days in advance of delivery (e.g., orders must be placed by 11:30 a.m. on a Monday for a Wednesday delivery). Due to the holiday, you may need to place your cash order a day earlier than usual (e.g., the same order referenced above should be placed on a Friday for a Wednesday delivery).

Vertifi Software's Branch Capture program is a high-volume check processing solution for items received at branches, ATMs, or through the mail. Vertifi is pleased to introduce the release of Branch Capture v5.0 for Windows 7 Pro OS and above. This latest release features a more powerful Optical Character Recognition (OCR) and Magnetic Ink Character Recognition (MICR) engine, and critical technology updates for added protection against cyber risks.

In addition, and as a result of these technology updates, Advanced Fraud Solutions TrueChecks® fraud detection will soon be available as an optional service, and will offer actionable reports on potentially fraudulent or risky items.

Current Branch Capture service users have been notified about the availability of and system requirements for version 5.0, and will be notified when AFS TrueChecks becomes available.

To learn more about Branch Capture v5.0, please contact Sandy Tague (stague@vertifi.com) at 800.428.1144, Ext. 3526; or implementations and support (support@vertifi.com), Ext. 2.

Announcing Vertifi's Branch Capture v5.0

INSIDE EASCORP • SECOND QUARTER 2019 • PAGE 4

35 Corporate DriveSuite 300 Burlington, MA 01803781.933.9950 800.428.1144

www.eascorp.org

UPCOMING EVENTS

Remote DeposZip® CaptureHelpful Tips and Tricks

Vertifi has recently updated its OCR and MICR recognition engine. As a result, clients

are reporting positive results, including a notable decrease in the number of MICR

repairs they must perform.

Association of Credit Union Senior Officers Tuesday, May 21; Thursday, September 19;

and Tuesday, November 12, 2019MHA Conference Center, Burlington, MA

123rd Annual Boston MarathonMonday, April 15, 2019

Hopkinton, MA to Boston, MA

ACH Service Users' Meeting*Tuesday, April 30, 2019

EasCorp Offices, Burlington, MA

EasCorp's 41st Annual Meeting & Partnership Conference

Thursday, May 2, 2019Café Escadrille, Burlington, MA

Connecticut Members' and Clients' Meeting*Thursday, May 9, 2019

Sheraton South Hartford, Hartford, CT

Credit Unions Kids at Heart® Invitational Golf TournamentMonday, September 16, 2019

Tedesco Country Club, Marblehead, MA

*Please note that these meeting dates have changed since the last publication.

EasCorp's 2018 Audited Financial Statements are now available in the Due Diligence section of the company's website for anyone with an EasCorp- issued digital certificate. Independent auditing firm, CliftonLarsonAllen LLP, performed the audit and provided the Independent Auditor's Report.

EasCorp and Vertifi's Service Organization Controls (SOC) 1 report, and Vertifi's SOC 2 report are also available online in the Due Diligence section of the companies' websites. These reports are an integral part of EasCorp and Vertifi’s robust Due Diligence programs, and provide assurances to their members and clients about their security, confidentiality, and availability standards.

On March 21, 2019, Robert McPherson of Crowe LLC’s Information Technology Assurance Group, presented EasCorp and Vertifi's SOC 1 and SOC 2 Review and Educational Webinar to describe the difference between these reports and to offer insight on our companies' 2018 reports. A recording of this program will be available on Easelink or the Vertifi Customer Portal (VCP). Access to these reports and this recording is limited to those authorized agents with an EasCorp- or Vertifi-issued digital certificate.

For more information, contact Cindy Nelson (cnelson@eascorp.org) at 800.428.1144, Ext. 3308; or implementations and support (support@vertifi.com), Ext. 2.

Audited Financial Statements and SOC Reports Available Now