Volume 4, Issue 2 • May 2002

The Source ffor IIntternattiionall Crediitt Uniion IInfformattiion World Council of Credit Unions, Inc. Board of Directors Gerry Foley , Chairman ; Ireland Irish League of Credit Unions (ILCU) Robert McVeigh , 1st Vice Chairman; Canada Credit Union Central of Canada (CUCC) Gary Plank , 2nd Vice Chairman ; USA Credit Union National Association (CUNA) Executive Forum Melvin Edwards , Treasurer ; Caribbean Fostering Trust in Caribbean Confederation of Credit Unions (CCCU) Dave Chatfield , Secretary; USA Uncertain Times ...... 1, 17 Credit Union National Association (CUNA) Feature Article Grzegorz Bierecki , Director; Poland Savings Mobilization: National Association of Cooperative Savings & Credit Unions (NACSCU) The Cornerstone of Marcel Chorel , Director ; Canada Credit Union Credit Union Central of Canada (CUCC) Síncrito Cifuentes , Director; Guatemala Development ...... 2–3,18–19 National Federation of Credit Unions and Multiple Services Cooperatives (FENACOAC) Global Advocacy Dennis Cutter , Director; USA Cross-Border Credit Union National Association (CUNA) Director Connections ...... 4 Ron Hance , ; USA Credit Union National Association (CUNA) Knowledge Sharing Sylvester Kadzola , Director; Malawi Polish Leader to Kick-Off Malawi Union of Savings & Credit Co-operatives, Ltd. (MUSCCO) Conference ...... 5 Neil W. McDonald , Director; New Zealand New Zealand Association of Credit Unions (NZACU) Global Trends Rob Nicholls , Director; Australia Fraudulent Offshore Credit Union Services Corporation (Australia) Ltd. (CUSCAL) “Credit Unions” ...... 6 – 7 José Manuel Rabines , Director; Perú National Federation of Credit Unions of Peru (FENACREP) Movement Highlights Arthur Arnold , President & CEO; Ex-officio to the Board Member Updates ...... 8 – 9 World Council of Credit Unions, Inc. (WOCCU) Special Report General Assembly Business Continuity and Trevor Alleyne , Delegate; Caribbean Recovery Plans ...... 10 – 11 Caribbean Confederation of Credit Unions (CCCU) Paul Armbruster, Delegate; Germany People-to-People International Raiffeisen Union (IRU) Suriname: Claude Béland , Delegate; Canada The Way Forward ...... 12, 17 International Cooperative Banking Association (ICBA) Esteban Burneo , Delegate; Ecuador Spotlights on Development Association of Credit Unions Controlled by the Superintendency of Banks (ACSB) Macedonia: Changing David de Jong , Delegate; South Africa Perception ...... 13 – 15 Savings & Credit Cooperative League of South Africa (SACCOL) Vietnam: Establishing Rose Dorman , Delegate; Great Britain A Benchmark ...... 16 Association of British Credit Unions, Ltd. (ABCUL) Lauren Goetz , Delegate; Dominican Republic Supporters Corner Association of Rural Credit Unions (AIRAC) British Columbia: A Tradition Ranjith Hettiarachchi , Delegate; Asia of Support ...... 20 Association of Asian Confederation of Credit Unions (ACCU) WOCCU Supporters ...... 21 Barry Jolette , Delegate; USA Products & Services Credit Union National Association (CUNA) Jim McMahon , Delegate; Ireland Credit Union Products Irish League of Credit Unions (ILCU) Available Online ...... 17 Petro Kozynets , Delegate; Ukraine 2002 Leadership Institute Ukrainian National Association of Savings & Credit Unions (UNASCU) & AGM in Poland ...... 22 Luke Leonard , Delegate; Ireland Eccu Assurance Company Ltd. (ECCU) Credit Union World Christopher McHugh , Delegate; Nicaragua Published by World Council Central of Financial Credit Unions of Nicaragua (CCACN) of Credit Unions, Inc. Lyubov Olovyannikova , Delegate; Russia Publishing and Editorial Staff Russian Credit Union League (RCUL) Jin-Woo Park Delegate; Publisher: Kecia L. Doyle , Asia Marketing Communications Manager Association of Asian Confederation of Credit Unions (ACCU) John Prescott , Delegate ; Australia Editor: Kimberly Johnston Credit Union Services Corporation (Australia) Ltd. (CUSCAL) Marketing Communications Officer Catherine Roberts , Delegate; USA Designer: Denise E. Knudsvig Credit Union National Association (CUNA) Desktop Publishing/Graphic Design Specialist Radu Savitchi , Delegate; Romania Publishing Information National Union of Mutual Benefit Societies of Romanian Employees (UNCAR) Credit Union World is published three times Lon Sprecher , Delegate; USA a year by World Council of Credit Unions, Inc. World CUNA Mutual Group Council reserves the right to edit letters Basilio Vanuaca , Delegate; Fiji to the editor and all submissions. Send sub missions, Fiji Credit Union League (FCUL) requests for subscriptions and address changes to Jacinto Villarreal , Delegate; Panama Kimberly Johnston, editor. Credit Union Guaranty Fund Corporation of Panama (COFEP) 5710 Mineral Point Road Zoltan Vitus , Delegate; Romania Madison, WI 53705-4493 USA National Union of Mutual Benefit Societies of Romanian Employees (UNCAR) PO Box 2982 Ramón Imperial Zuñiga Delegate; Madison, WI 53701-2982 USA , Mexico Telephone: (608) 231-7130 Caja Popular Mexicana (CPM) Fax: (608) 238-8020 To Be Determined , Delegate; Latin America E-mail: [email protected] Latin American Confederation of Credit Unions (COLAC) Website: www.woccu.org Executive Staff ©2002 World Council of Arthur Arnold , President & Chief Executive Officer Credit Unions, Inc. Mary Chapman , Vice President & Chief Financial Officer Brian Branch , Vice President Printed with Soy-Ink on Recycled Paper Lucy Ito , Vice President Executive Forum Fostering Trust in Uncertain Times

–by Arthur Arnold, CEO & Gerry Foley, Board Chairman, WOCCU

For credit unions worldwide, our That’s why World Council works, on your Arthur Arnold Gerry Foley President & CEO Board Chairman difference and advantage lies in our mem - behalf, with many legislators and regula - ber-ownership and shared tors in both “have less” and “have more” values—the values of access, trust, self- countries to improve the legislative and reg - British credit unions will benefit from the help and growth. Access to ulatory framework by setting minimum international expertise capital and affordable financial standards of soundness and safety, based that has gone into developing the services is a basic human right and the on our PEARLS Monitoring System. In PEARLS system. PEARLS provides foundation for enabling millions of people past issues of this the essential tools for monitoring, to grow through self-help. Credit unions magazine, we’ve shared our successes in comparison and evaluation that credit provide that basic human right. “have less” countries, such as Ecuador, unions need to get to grips with the new When backed by enabling legislation Guatemala and the Philippines. Now, FSA regulatory regime and expand and sound we can share an exciting development their services enabling more people to ben - and safe operations, credit unions engen - for a “have more” country. efit from good-value, accessible financial der the trust of members to ensure future services.” sustainability, even in times of economic In March of this year, chairman of the uncertainty. Financial Services Authority (FSA), Sir Following the PEARLS launch, we had the Howard Davies launched a major project opportunity to visit one of the 10 credit In this issue of Credit Union World , we to strengthen the British movement. unions that will be part of the pilot project, emphasize how credit unions are living up With the financial the Tower Hamlets Community Credit to those values and leading by example, sponsorship of Barclays PLC, the Union Ltd. in the East End of London. In particularly when Association of British Credit Unions, Ltd. this economically depressed area the banks it comes to fostering trust. As (ABCUL) is bringing WOCCU’s are withdrawing, but Tower Hamlets has this is World Council’s “Year of PEARLS Monitoring System to credit taken over the operations of one such Development,” the feature article on sav - unions in the United Kingdom. A pilot bank. We give a lot of credit to the leader - ings mobilization demonstrates how credit group of 10 credit unions will install the ship and staff of this young, rapidly grow - unions in WOCCU’s Model Credit system and all ABCUL credit unions will ing community credit union for commit - Union Building projects are providing the receive an annual summary of their ting to the PEARLS financial disciplines, “have less” with a safe place to save. Trust is PEARLS ratios. becoming independent from local subsi - also the underlying message of the articles dies and filling a need in on “offshore credit unions,” disaster recov - Shaun Spiers said, “I am delighted that the community. Their story clearly demon - ery plans, new legislation in Suriname and strates the credit union values. the featured WOCCU credit union devel - opment projects in Macedonia and Later in March, we had another chance to Vietnam. see the credit union values at work. Joined by 1st vice chairman, Bobby McVeigh, we Indeed, trust is one of the greatest chal - visited with leaders of the New York CU lenges WOCCU faces when we go into Continued on Page 17 “have less” countries to conduct develop - ment projects. In “have more” coun - tries with strong credit union move - ments, we take it for granted that our money is safe thanks to legislation, regula - tion and a deposit guarantee system. Not so in the vast majority or 90% of the “have photo above: Sir Howard Davies (far left) launches the PEARLS project in Britain with less” countries where credit unions operate. leaders of Barclays, WOCCU and ABCUL. These members trust their credit union leaders to be responsible managers. They photo at right: WOCCU Board members visit with leaders of United Nations FCU. have nothing else to fall back on.

~ 1~ Feature Article

–by Brian Branch, Vice President, WOCCU

Savings mobilization has become one of the cornerstones of success for World Council ings mobilization from the credit union of Credit Unions, Inc. (WOCCU) in inter - perspective. It strengthens the financial national credit union development. It is self-sufficiency of the credit union and difficult enough to encourage savings in a eliminates the dependency on external developed market. So people ask how is it borrowing. Savings possible to do it successfully in a develop - represent a stable and cost effective source ing economy with of funds and allow an institu tion to members earning a subsistence living, as lit - engage in community- tle as US$25 to US$100 a month? based finance as opposed to other develop - WOCCU has found that savings, although ment methods where finance may be sub - in very small amounts, is perhaps the most ject to the priorities frequently desired financial service oppor - of governments or donors. Lastly, tunity by the poor all over the world. For members of credit unions have savings needs, many in developing countries, credit as well as credit needs and unions are their first experience with savings mobilization gives members access to access to a safe place to save. By using the those much needed services in developing credit union’s savings and credit services, countries.” even the members earning the smallest of incomes can make the difference in their Savings products are constructed in three ability to open or expand small business - ways. Products are designed to offer vari - es, send their children to school, pay for ous trade-offs between convenience (liq - medical treatments and just live more uidity) and rate of return (compensa - comfortably. tion), depending on demand. Products access to their funds. Greater volume are tailored to respond to the demand of savers seek to maximize their return on Through surveys in various regions of the particular market niches: farmers who savings and have proven willing to sacri - world, WOCCU has observed a common save in large sums typically once a year, fice liquidity for higher return. These pattern in what people look for in a place after a harvest and withdraw savings savers will generally trade off liquidity for the to deposit their savings. Savers frequently gradually through the year; or higher returns provided by products such as report that the most important feature children and students who save small certificates of deposit and long-term they seek is safety. A credit union will amounts due to their limited incomes. accounts. only be successful if it can demonstrate to Alternatively, products are tailored to the members that it’s a safe and secure place purposes for which members save: to pay Many moderate to large savers to save. Next people look for conven - education fees for their children or to prefer to build non-liquid longer-term sav - ience: access and liquidity. They want to purchase large expense items, such as ings in pursuit of long-run goals while have access to their savings when they appliances or homes. As products are maintaining a minimum amount in a liq - need them. Thirdly, they also look for built to meet member demand, the defin - uid passbook account for immediate or return on their savings. These preferences ing characteristics are liquidity or access emergency needs. Smaller savers may grad - and priorities shape the way WOCCU to savings, term, minimum balance, rate uate from builds savings programs and tailors of return, interest rate structure and trans - simple low balance, low return savings products to meet member action costs. products to larger, higher return products as demands. Initial preconditions for mobi - their income and assets grow. lizing savings involve putting in place Lower income savers often seek small sound financial disciplines that will pro - accounts that offer high levels of liquidity. The Poor and Saving tect the value of savings. Then savings These savers exhibit strong preferences Most development professionals no products are developed to provide mem - for accounts such as passbook accounts, longer question if poor people save. bers with the convenience and return they with low minimum balances and complete Various studies demonstrate that the poor seek. and immediate access to savings at all can and do save, although these savings are times. These lower income savers have generally not often in liquid financial Lucy Ito, vice president, WOCCU proven willing to sacrifice return for open form. These studies also find that the explains, “There are three benefits to sav - majority of poor savers lack access to safe and sound institu tions for depositing their savings. WOCCU savings-driven ~ 2~ which forces them to save in the form of buying livestock, jewelry or other items that could be sold unions represent significant depth of out - quickly if the need arises. Credit unions reach, vast numbers of small accounts and in developing countries provide badly diversity of needed services for low- to moderate- outreach accounts of every size from income earners. Most of the time credit savers of diverse income levels. The savings credit union development unions are the only institutions offering account distribution from WOCCU programs worldwide demon - them loans and liquid deposit facilities. credit unions in Ecuador, Kenya, strate that low-income peo - Romania and Rwanda reveals a pattern in ple will What most distinguishes credit unions which most of the accounts have deposits substantially increase their from other non-bank financial entities is less than $100, representing a small com - voluntary savings deposits if the ability to mobilize mass numbers of ponent of the total volume, while the provided with security, con - small, voluntary savings accounts. Today, majority of the volume is comprised of a venient service and market WOCCU project credit unions serve small number of large accounts. returns. Yet, millions of 2,239,453 members with a total savings people continue to lack access volume of US$345,776,475. In many Numerous small deposits that character - to safe, reliable and conven - credit unions that have mature savings ize passbook savings accounts tend to be ientofferings, net savers outnumber net accompanied by the simultaneous pres - savings services. For example, borrowers by seven to one. ence of a few large accounts that help tea and rice farmers in rural spread fixed costs and more moderate size Kenya may or may not have Depth & Diversity of Outreach accounts that provide a stable base of access to a savings account, The savings deposits mobilized by credit funds. The smaller accounts tend to be relatively stable with little movement, while the larger accounts are interest rate- sensitive and can be volatile. As such, the larger accounts must be managed with stronger liquidity reserving discipline. The Ecuadorian credit unions display a pattern consistent with more mature credit unions: the prolifera tion of many small accounts, the small presence of large accounts over which to spread fixed costs and the moderate presence of a mid - dle range group.

In many cases, savings services are demanded by clients for the purpose of creating financial safety nets to soften the costly repercussions of health emergencies or political or economic instability. In Kenya, increasing numbers of citizens save for expenses related to HIV/AIDS and in Rwanda, where citizens are strug - gling to rebuild a nation after the geno - cide of the mid-1990s, there is a strong need for savings services.

Continued on Page 18

~ 3~ Global Advocacy Cross-Border Connections –Mexico Spotlighted

–by Kimberly Johnston, Marketing Communications Officer, WOCCU

Earlier this year Mexican credit unions seated l-r: Gerry Foley, chairman, WOCCU; Dave Chatfield, CEO, CCUL; and the organizations that foster their Patsy Van Oeuwerkerk, chairperson, CCUL; Ramón Imperial Zuñiga, CEO, development received acclaim at the CPM; Ramón Mosqueda, chairman, CPM. Annual International Reception, co- standing l-r: Adolfo Franco, asst. administrator for Latin America and the hosted by World Council of Credit Caribbean, USAID; Carlos Gonzalez Gutierrez, Office for Latino Affairs, Unions, Inc. (WOCCU) and Credit Mexican Embassy; Arthur Arnold, CEO, WOCCU; Dr. K. Philippa Malmgren, special asst. to the President, The White House; Dennis Dollar, chairman, Union National Association’s World NCUA; Dick Ensweiler, CEO, TCUL; Terry McCormick, chairman, TCUL; and Affairs Committee. The event held at Javier Gavito, CEO, Bansefi. the Mexican Cultural Institute in Washington, D.C. treated attendees to making affordable transactions come of the meeting, Ambassador Bremer comments from special guests of honor accessible to credit union members in the sent letters to all of the 48 Mexican con - including: Dennis Dollar, chairman, U.S. and across the border.” Dollar contin - sulate offices through out the U.S. expressing National Credit Union Administration ued, “It is NCUA’s role to remove regula - his opinion that they should be working (NCUA); Dr. K. Philippa Malmgren, tory impediments, where possible.” with credit unions. As a follow-up initiative, special assistant to President Bush; Adolfo World Council is facilitating the connec - Franco, assistant administrator for Also taking place during the event was a tion of U.S. state leagues and Mexican Latin America and the special WOCCU People-to-People consulate offices to work together Caribbean, Partnership signing ceremony between toward providing greater access to financial U.S. Agency for International Caja Popular Mexicana, California services for Mexicans. In the letter sent to Development; and Carlos Gonzales Credit Union League, Texas Credit Union consulate offices Bremer closed by saying, Gutierrez, Office of Latino Affairs, League and World Council. The four- “We consider the services that credit Mexican Embassy. organization partnership focuses on IR net unions offer to be a benefit to our immi - and other ways to share cross-border grants.” “The Mexican Cultural Institute exchange. The group is looking at ways to provided the ideal venue to celebrate reach out to more than 12 million Mexican President Bush’s signing of the appro - immigrants in the U.S. “This partner - priations bill, which included US$2 mil - ship agreement exists as evidence of the lion for credit union commitment made by representatives of development projects in Mexico and South all the organizations to foster credit union Africa,” explained Arthur Arnold, development and knowledge exchange,” WOCCU president and CEO. “The recep - said Arthur Arnold, WOCCU president tion also provided a great opportunity for and CEO. “These partnerships repre - U.S. credit union leaders to learn more sent the best of what credit union people about WOCCU’s Mexico project, along have to offer: people helping people to with credit union issues affecting both help themselves.” sides of the border.” Following the events at the One of the evening’s speakers, Dennis International Reception, a World Dollar made a statement in his remarks Council delegation also met with the that received great applause from the Mexican Ambassador, Juan José Bremer to crowd of more than 300 credit union discuss the long-term goals and objectives attendees and dignitaries, “The NCUA between U.S. l-r: Katie Herberger, legislative affairs manager, leadership is looking at being more of a and Mexican credit unions. As an out - CUNA; Dick Ensweiler, CEO, TCUL; Bill Cheney, CEO, partner and facilitator in the IR net effort Xerox FCU; Harriet May, CEO, Government Employees CU; Arthur Arnold, CEO, WOCCU; Ambassador Juan José Bremer; Dave Chatfield, CEO, CCUL; Richard McBride, executive vice president, CUNA; and Dave Grace, IRnet manager, WOCCU.

~ 4~ Knowledge Sharing Polish Leader to Kick-off Conference –by Kimberly Johnston, Marketing Communications Officer, WOCCU

Busy street in Poland

of Polish solidarity. He was faced with over - whelming difficulties; the choice of strategy was not easy. The goal was clear enough: the workers’ right to organize and the right to negotiate with the country’s officials on the workers’ social and economic situation. But which of the many available paths would lead him to this goal? Walesa’s chosen strategy was that of peace and negotiation. Schedule of Speakers Addressing credit union leaders from around Wednesday, June 26 One of Walesa’s less publicized the world, Lech Walesa will be kicking off the Lech Walesa 6th World Council of Credit Unions accomplishments is the endorsement of A Century of Solidarity Leadership Institute in Warsaw, Poland, SKOKs—the acronym for Polish credit Dennis Dollar unions. As Poland emerged from The Credit Union Difference in Action June 25-28. As the opening keynoter, Walesa Denise Wymore will speak on “Solidarity in the New Communist rule, then President Walesa Reaching Out: Marketing Your Millennium” and the important role credit learned of the value of credit unions and Credit Union to All Generations their potential as democratic Buck Joseph unions have played in the past and their role Lead Employees in Placing Members First vehicles, which would improve the lives of in the future. His presentation will also Rob Nicholls and Barbara Kachelski emphasize the differentiation of credit working class and low- income Poles. Outsourcing: Capitalizing on Your Credit Union’s Strengths unions, which is the theme of the Leadership Because of Walesa’s support, the seeds of the Polish credit union movement were Teresa Freeborn and Institute. Andrzej Sosnowski planted and this year will celebrate its 10th Unify the Credit Union Message anniversary. Today, Polish credit with Branding Walesa is best known by the world as the Andrew Leys and Susan Davenport shipyard electrician who rose to world unions are one of the fastest growing Promote and Manage Rapid Growth leadership ranks, becoming the first movements in the world . Dhun Karai The Quest for Relevance in an eWorld Solidarity Trade Union leader, winning This year’s Leadership Institute focuses on Marek Kaminski a Nobel Peace Prize and going on to Tackling Two Poles in One Year become Poland’s first democratically elect - the credit union difference. Speakers Thursday, June 27 will help you to evaluate your credit union’s ed president. By themselves these are Friedrich G. Zuther impressive accomplishments, combined financial and social commitment. They will The Future of the Internet Leszek Balcerowicz they make up the story of one of the most offer ideas for capitalizing on that commit - ment and making it transparent to members, The Economic Transformation of Poland fascinating leaders of our time. Rep. Marcy Kaptur and Rep. Jim Leach staff, directors and the greater community. Salutes to the Success of Credit Unions in Poland Lech Walesa has made the name Credit union leaders are encouraged to regis - ter for the Leadership Institute and enjoy Mark Cifuentes and Martha Ninichuk “Solidarity” more than an expression of the Building Credit Unions Internationally unity of a group campaigning for special Poland, Europe’s best-kept secret. Poland Rich Woldt interests. Solidarity has come to represent the is an historic and exciting venue for the Take Control and Safeguard Your world’s credit union and financial coopera - Credit Union Against Terrorism determination to resolve conflicts and oblit - Linda Archer and Anne Cochran erate disagreement through peaceful nego - tiveStandards of Excellence in Credit Union Leadership tiation, where all involved meet with a leaders to exchange information and explore ways to gain the competitive edge by dif - Jasmine Birtles mutual respect for one another’s integrity. Corporate Responsibility and Other Laughing ferentiating ourselves through Matters “Conflicts and disagreements can be various “Members First.” Friday, June 28 and can lead to many different reactions. John McKechnie Plan now to attend World Council’s Project Differentiation: Committing Those involved will inevitably be faced to Members First with complicated decisions,” Walesa explains. International Credit Union Leadership Rich Woldt This was the situation one August day in Institute to strengthen your executive skills Working 9 to 5: Managing the Risk of and the future of your organiza tion in Workplace Violence 1980, when Lech Walesa climbed over the Doug Whalen steel fence of the Lenin yards in Gdansk, today’s global economy. Chip Cards and Other Products on the Credit Union Horizon took the microphone and became the leader To register for the conference go to www.woccu.org/education or Tim Laing 5 Steps to Becoming a Great contact Irene Scallon~ a5~t (608) 231-7601. Credit Union Leader Global Trends

–by Jennifer Chien, Credit Union Analyst, WOCCU

Fraud is a multidimensional issue that US$4,900 that includes a certified certifi - shell organization. There are credit unions must face every day. cate of incorporation by the State, certi - generally multiple tiers to the There can be fraud from within a fied articles of incorporation, by-laws, a organization, involving limited liability financial institution, such as collusion records book, share certificates and a corpo - companies (LLC) based in one or fraud directed at a financial rate seal. The “credit union” will have local offshore location owning the “credit institution, such as money laundering. stand-ins for real owners, thereby confus - union” in another location. However, the An aspect of fraud that is less well ing ownership and ostensibly allowing main organization behind these complicated known to many credit unions is fraud individuals to move money and hide income webs that oversees the various offshore enti - related to offshore “credit unions” and from the Internal Revenue Service (IRS). ties and website marketing promotions fre - international banking companies Official registration of these “credit quently ends up being based in the U.S. or (IBC). World Council of Credit Unions, unions” often occurs through a public reg - Canada. Inc. (WOCCU) has learned of several istry, such as in Panama, instead of with the organizations promoting schemes Panama Institute of Cooperatives, where Why Be Concerned? involving the sale of or membership in genuine credit unions are supposed to regis - Types of operations such as those “international credit unions” who ter. described can pose a danger to both credit report to be credit unions but whose unions and consumers. With their prom - structure and activities in reality have Along with promoting the sale of these ises of easy access to nothing to do with credit unions and off-the-shelf, ready-made “credit unions” at financial institutions and high returns, off - the credit union philosophy. what is claimed to be a bargain price, shore “credit union” and IBC schemes these organiza tions also tout the numer - have been successful in Offshore CUs – ous benefits that customers will be able to luring investors that range from What They’re All About take advantage of through their private retirees to individuals from all income levels. Offshore banking is a lucrative and grow - “credit unions.” One organization lists the One “international credit union,” which only ing industry. It is currently estimated that following variety of things you can do with allows members to join after they first roughly US$6 trillion is held in offshore your own credit union: issue your own form an LLC, a Corporation and a accounts. Many offshore accounts and bank references, grant yourself construc - Limited Partnership, encourages members to financial organizations are perfectly legiti - tive credit cash out their individual retirement accounts mate and legal. However, there are several ratings, grant your own loans and mort - and 401Ks and transfer this money offshore offshore financial operations whose pur - gages, minimize taxes and boost your through the three business entities the mem - pose is to attract unwitting investors corporate image by retaining your very bers have formed. Some of these investors into impossibly lucrative financial invest - own credit union. have lost all of their invest ments when these ments that often organizations vanish before clients ever see any returns. After these “credit unions” are set up, the folded or their investments vanished. “These These organizations promote the opportu - organization generally encourages ‘credit unions’ are just pieces of paper—they nity to own or join private offshore “credit investors to use the money in their IBCs to are not real credit unions. They are created to unions” or banks in such locales as the further invest in various enterprises that defraud and there is no shortage of gullible Bahamas, Panama and Europe to enjoy promise exorbitant returns. One off - investors,” stated David Marchant, publisher such benefits shore sales pitch of OffshoreAlert , a monthly newsletter as high returns on investments, provides current examples on investments that reports on offshore scams. safe havens for tax-free money and finan - that pay from 40%-150% per year, based cial privacy. on past results. However, these invest - However, it is not always easy to fully assess ments are not available to individual U.S. an organization beforehand to judge its These operations typically follow a similar citizens because of U.S. government credibility, nor is it easy to prosecute an pattern. An organization’s restrictions; therefore, any interested indi - organization that has swindled its customers. website will promise to set up an IBC— viduals must first set up an offshore entity It can be difficult to stop those opera - a bank, trust, “credit union,’” like a “credit union” which can make the tions involved in fraudulent activities due foundation, etc.—in an ideal offshore loca - investments secretly on their behalf. to the complexity and secrecy of these tion for a large up-front fee. One website organizations, which multiplies the time states that they have sought out a jurisdic - These organizations typically have a cou - and effort required by tion where one can set up their “own credit ple of employees on the ground, lawyers regulators and officials in scattered regions union for only US$6,500.” Another organi - or offshore intermediaries who will to investigate any wrongdo ings. zation offers a corporation package for obtain licenses, officially Additionally, laws protecting financial register the organiz~at6~ions and operate the privacy in offshore locations often make it given problematic to gather the current substantive evidence. efforts to crackdown on criminals and terrorist financing. One of the main problems with these types of international financial What’s Being Done schemes for genuine credit unions is that National financial industry and credit they may technically be operating legally; or union regulatory bodies have been alerted also be beneficial. rather they are not acting illegally, in to the issue of offshore credit unions after it regards to the use of the “credit union” was highlighted in the press several The most effective way to prevent schemes term. In many offshore jurisdictions, there months ago. WOCCU has communicated such as these international “credit unions” lacks specific, detailed legislation or regula - with credit union leagues and regulators in from taking place is to close the legislative tion regarding the use of the term “credit severalloopholes that allow these operations to union.” “Presently there is no law in offshore locations regarding fraudulent function in offshore locations. Specific legis - Panama regulating the brand name of ‘cred - “credit unions,” recommending that strong lation is required that prevents organizations it union’ as there is for ‘bancos’ and ‘coop - steps be taken to prevent such activity. from abusing any variations of the credit erativas de ahorro y union name. “WOCCU strongly encour - credito,’ therefore it is legally viable for a In the United States, the Bush ages individual credit unions and federations company to be chartered with the name of Administration is also cracking down on worldwide to advocate for better regulation. ‘credit union’ included in its registered money laundering and fraud through In light of the present day crackdown on ter - name,” explained Angel Castro, an interna - new legislation regarding the behavior of rorist money laundering and fraud, credit tional credit union financial consultant financial institutions. These actions may unions can take the opportunity to play a role based in Panama. “Loopholes in credit help diminish in shutting down and union-related legislation could be found if the number and operations of internation - preventing fraudulent activity,” stated you search hard enough.” al “credit unions” operations due to Arnold. Informing regulators and increasingly strict regulations regard - government officials of the importance of Such schemes have a negative impact on ing what can be considered private finan - more effective legislation and better supervi - the good name of credit unions. “We saw cial operations. There have also been sion and oversight can help prevent organ - this happen in Mexico in 2000, where a broader international efforts to target off - izers of financial schemes from taking number of fraudulent credit unions (cajas shore financial centers. The Paris-based advantage of the credit union name and popu lares) committed acts that significantly Financial Action Task Force targeted off - their unwitting clients’ investments. undermined confidence in the credit shore financial centers in 1999 for refus - ing to bring their money laundering con - union sector. Two years later, well-run *Sources: OffshoreAlert (www.offshorebusiness.com); trols in line with universally accepted stan - www.quatloos.com, Washington Post ; Investment credit unions are still struggling to over - Dealers’ Digest , 11/26/01; offshore promoters’ websites come these percep tions,” stated Arthur dards; these efforts will likely be strength - Arnold, president and CEO of ened by the renewed international focus on WOCCU. Beyond the fact, these false money laundering. “credit unions” are not following coopera - tive principles, there is the added concern The best steps a credit union can take to that some of these organizations may be help combat these fraudulent “credit involved in money laun der - unions” are to be alert for any suspicious ing.“While there is nothing inherently activity and to communicate with officials illegal about an IBC or an offshore trust, regarding any known fraudulent activities. they are frequently used to hide assets Given the new emphasis on terrorist financ - from legitimate creditors, to avoid paying ing, taxes or to launder money made from it is important to be highly vigilant criminal activities, according to the IRS.” for schemes such as these fake (Washington Post , 11/4/99) Associations “credit unions” and to thoroughly with fraud and money laundering are detri - check the background of any financial mental to the efforts of the credit organization you are dealing with to be unionassured of its legitimacy. Alerting your movement worldwide, particularly credit union members and communities about these operations can ~ 7~ Movement Highlights Member Updates

CANADA – Following one another, AIRAC conducted focus IRELAND – Last year the ILCU under - direction received from groups to find out specific opinions of rep - took four major review projects dealing the board of directors, resented credit union groups. As a result of with: funding of the league, insurance Canadian Central’s moved forward to pre - the research, AIRAC members will no products and services review, monitoring pare a business case examining the pro - longer be branded as credit unions; instead of credit unions and IT/communications. posed National Learning Organization they will be marketed under the name The Irish movement awaits the findings of (NLO). The NLO will provide the credit Financial Services Cooperatives (FSC). the Independent Review Commission, union system with a single, integrated edu - The name, when translated into Spanish which was established follow - cation capability using state of the art tech - implies AIRAC members can offer more ing the 2001 ILCU AGM. The nology to support learning across the cred - than basic credit and share draft accounts. Commission has a mandate to it union system. This integrated approach The national association is also working on review all aspects of the Irish is expected to reduce costs by eliminating a project for FSCs to offer debit cards, movement including credit union vision, duplication and delivering faster, broader additional ATM the role of the league, movement struc - learning due to improved access to profes - services and in the future remittances. tures, services and products provision, sional development resources. The work to AIRAC is kicking off an image league funding, savings protection scheme, date on the NLO will be reviewed at campaign to support its new brand. governance and accountability. Canadian Central’s 2002 Canadian Conference in May. FIJI – Credit unions in Fiji are slowly The initial findings of the commission will recovering after the political prob - be shared with the Irish movement at a CARIBBEAN – The Caribbean lems of last year. With the series of workshops. The commission will Confederation of Credit Unions economy still fragile, life is slowly return - also present findings at the league AGM in (CCCU) celebrates its 30th anniversary ing to normal. An application to the April, with the final report of the commis - August 17, 2002. A European Union to computerize and pro - sion being presented for debate and deci - number of vide electronic sion at a special general meeting of all activities will be held throughout the year banking league affiliated credit unions on June 9, to highlight this milestone, among the facilities to large credit unions in Fiji is 2002. main activities will be underway and looking positive. Attempts the 45th Annual International are also still being made to get the Fijian MALAWI – The major issue affecting Convention & 31st Annual General government to review the Credit Union SACCOs in Malawi is the devastating Meeting held in Ocho Rios, Jamaica from Act. food shortage, which has hit the country July 20-26, 2002. and is affecting every sector of the econo - GREAT BRITAIN – ABCUL is being my, including credit unions, particularly The theme for the convention is sponsored by Barclay’s in rural areas. Little member saving is 30 Years...Celebrating the Past, PLC to bring the PEARLS Monitoring taking place and loans are not being serv - Embracing the Future. The conven tion System to credit unions in England, iced as will highlight many of the past accom - Scotland and Wales. PEARLS, a product regularly as they would have been with - plishments of the co-operative sector made developed by World Council of Credit out this food shortage. The by individuals, leagues and others. It will Unions, is currently in use in situation might improve in May after har - also focus on a plan and strategies for some more than 20 countries vest of maize (corn), the major of the challenges the sector faces in the around the world. It provides a food staple and small farmers 21st Century. The International Youth series of financial ratios to monitor the start selling their farm pro - Co-operative Business Camp, the financial stability of credit unions and serves duce. Regulators Forum and the Managers’ as an early warning system generating Institute, will also be held during invaluable man agement information for MEXICO – CPM is currently focusing the convention. future strategic planning. The system has attention on the WOCCU-Mexico credit been instrumental in the expansion of the union development project kick-off pro - DOMINICAN REPUBLIC – AIRAC credit union movement in other parts of gram. The event, which is expected to host recently launched an image campaign for the world. Barclay’s support will enable a government member credit unions as part of a World pilot group of 10 credit unions to install officials from Mexico and the U.S., the U.S. Bank financial project. After conducting a the system and all ABCUL credit unions Agency for International Development and market study to measure the will receive an annual summary of their credit union leaders will draw national press perception of credit unions PEARLS ratios. to promote the credit union strength - and banks in comparison to ening project. CPM also held its national Annual ~ 8~ General Meeting in Leon. cooperative standards. UNITED STATES – U.S. credit unions NEW ZEALAND – As of POLAND – Late in 2001 NACSCU pro - demonstrated their commitment to January 2002, the NZACU posals were included the philosophy of “peoplehelping people” in member credit unions operate in a Parliament-adopted amended law the wake of the September 11 under a Trust Deed in compliance with on physical person tax, which will enable terrorist attacks. Credit unions and credit revised legislation. This compliance credit union members to deduct costs union organizations raised over enables credit unions to accept deposits up from their pre-tax incomes of housing US$650,000 for victims and their families to NZ$250,000 or 10% of total assets, loans. Adoption of this amendment means through the Credit Unions Rebuild whichever is the lower. The previous limit inclusion of credit unions (along with America (CURA) Fund and over US$1 was a standard NZ$40,000. banks) in the new government-introduced million through the program aiming to assist Polish citizens in New York Credit Union Foundation. The NZACU has entered into an agency the realization of their housing needs. Money raised is being distributed to vic - agreement with one of New Zealand’s five tims and their families. foreign owned banks for The Polish movement has 680 credit credit unions to enter into unions serving over 520,000 members. Total Bankruptcy reform continues to New Zealand’s banking credit union assets are US$445 million, be a key issue for the U.S. credit union clearing system and be able to issue person - while deposits equaled US$390 million. In movement. At CUNA’s 2002 al checks to their members. Testing of this January, SKOKs (credit unions) were Governmental Affairs Conference, Transactional Banking Facility (TBF) includedBankruptcy Conference Committee commenced in April with three credit in Poland’s official Chairman Jim Sensenbrenner (R-Wis.) unions and soon after will be rolled out to Economic Development announced he has sent a the 26 member credit unions that make use Program for three years, 2002- compromise package to of NZACU’s Computer Bureau. This will 2005, in recognition of credit unions’ sig - the Senate that could enable these credit unions to compete nificant potential break the year-long stalemate on bank - more aggressively with the new govern - to become a key element in the imple - ruptcy reform as early as this spring. ment-owned Kiwibank. As part of a mar - mentation of government’s keting initiative a new standardized credit “Enterprise First” strategy for union logo is being introduced to member economic development. credit unions and the NZACU. UKRAINE – New credit union-specific leg - NICARAGUA – Nicaragua is in the islation was introduced in December process of computeriz ing its credit 2001. The new law sets out the unionorganizational, legal and economic princi - system. The Central is providing new ples of the establishment and activity of hardware, software and training. This credit unions, their associations, as well as is largetask, espe cially with some credit the rights and duties of the members of unions converting from paper accounting credit unions and their associations. and bookkeeping systems. When com - Under Article 10 of the new law, states pleted, all Nicaraguan credit unions that members of a credit union may be belong to CCACN will be interlinked. This Ukrainian citizens, foreigners and stateless will allow members to utilize any of the persons domiciled on the territory of credit unions to make a deposit, withdrawal, Ukraine, united by at least one similarity. cash a check or make a loan payment. The The use of the term “credit union” is now Central will become the clearing house for also under regulation. Enterprises, institu - all credit unions in the system. tions and organizations will not have the right to use “credit union” in their names CCACN recently received and not be subject to state registration copyright approval from under the names including this term, if the Nicaraguan govern - they have been ment on its logo and brand. Credit unions established by procedure other in the system have the right to use the than provided for by the pres - brand, as long as they follow financial and ent law.

~ 9 ~ Special Report Business Continuity & Recovery Plans

–Foreword by Mary Chapman, Chief Financial Officer, WOCCU Reprint, Dimensions , CUNA Mutual, September/October 2001

In today’s competitive marketplace any tinuity and recovery plan should be, first interruption to normal business operations and foremost, employees Involve Everyone in Planning is something to be and members, then currency and nego - With disaster recovery plans, it’s impor - concerned about. A business con - tiables and lastly, property and equip - tant that each employee and board volun - tinuity and recovery plan is a credit ment. A Business Continuity and teer takes an active role from the beginning union’s first line of defense—a preparation Recovery Plan is the credit union’s and remains responsible from that point for any unplanned, short or long-term guide for procedures in on. The greater number of people interruption of business operations. different situations and levels of involved, the less burdensome maintaining Whether it is a natural disaster, terrorist business interruption, whatever the cause. the plan will be and the greater the chance attack or some unforeseen incident, credit People need to know who to call, who does that most constancies will be dealt with. unions should be prepared. World Council what and where to go. With a plan in place When researching a plan, front-line staff of Credit Unions, Inc. (WOCCU) feels your most important assets—your employ - and employees from each department can strongly that priorities in the business con - ees—feel safe and will be prepared for their help: role in the plan. • Determine your current Planning for Disasters property assets Floods, fires, tornados and earthquakes— • Rank services that must be even nearby chemical spills and train continued during recovery (What’s wrecks—can devastate a credit union. most important to our members? Cash Unpredictable acts of violence like withdrawals? Loans? Transfers and armed robberies, employee shootings deposits?) and bombings round out the list of poten - • Find and contract resources in the tial disasters that can seriously threaten community in advance to help in the youraftermath of a disaster (i.e., offsite credit union’s livelihood. Many credit unions record storage) have an “it won’t happen to us” attitude • Uncover potential complications when it comes to disaster recovery plan - ning. But these same credit unions Once you have done your homework, should know that in the United States the you can begin creating the plan. National Credit Union Administration Include the worst possible requires and reviews comprehensive con - scenarios: your entire community has been tingency plans for all federally-insured hit, roads and other means of access are credit unions—no matter what size. Credit blocked and emergency relief forces are unions that fail usually don’t have plans in focused elsewhere. “It’s up to you and your place or don’t regularly update them. super crew of employees and directors to These organizations can face failure—or save the day and begin the recovery even worse—injury or loss of life if disaster process,” says Jim O’Dell, process owner strikes. for risk management in the Credit Union Protection area of CUNA Mutual. To protect your credit union and members’ assets, your credit union should have a plan First and foremost, remember: in place and board volunteers and staff, who employees and members first; currency know what to do in each case of disaster. and negotiables next; property and equip - ment last. No amount of money is worth Disaster planning involves three major anyone’s life or well-being. Set clear docu - phases: preparing a disaster recovery mented guidelines and procedures for dif - plan; training staff and ferent volunteers; and coping with a disaster and situations. Make sure each employee under - its aftermath. This article focuses primarily stands his or her role and knows not to on phase one. take unnecessary risks. For example, after a

~ 10 ~ What to Include To ensure continuity of service in case of in Your Plan credit union building has been damaged, disaster, some credit unions are forming “brother-sister” relationships. This strate - Statement of Confidentiality no one should enter the structure until Individuals authorized to speak local authorities say it’s safe. gy entails becoming an alternative recovery to the media. site for a local damaged credit union and An Order of vice versa. The idea has a lot of advantages, Succession Statement Don’t Let Your Plan Gather Dust This statement, along with Once the plan is in place, it should be particularly for credit unions with multiple your most current organizational branches. But make sure to test the cred - chart, so services can updated annually, reviewed continue uninterrupted if key and approved by the credit union board it unions’ computer managers are sidelined. and officially documented. systems periodically for compatibility. You Disaster Recovery Team (DRT) will also need to have additional alternative A selected team that will Documentation showing plan mainte - take charge after the disaster nance, notes taken during simulations and recovery sites for disasters with widespread specifying the DRT’s authority written record of improvements can pro - impact, such as earth quakes or floods. Local and order of succession. authorities DRT & Damage vide clarification, should your credit union Assessment Team be legally challenged. can aid you in determining the extent of A list of DRT members who are likely disasters and you can inquire also members of the Damage Assessment Team (DAT) and The military does not wait to be attacked within your local credit union area alternates. The DAT members about credit unions should have specialized experi - before training its personnel and neither ence in areas like engineering, should you. Once a plan is in place, drill interested in reciprocal relationships. public relations and computer your employees and directors using inter - operations. International Disaster Relief Command Post Locations nal simulations. This often uncovers hid - List three predetermined loca - den flaws that point out how the plan can World Council of Credit Unions tions to temporarily relocate. be improved. It also helps credit union manages the Worldwide Foundation for Recovery Procedures Credit Unions’ a disaster relief fund that Procedures to follow for each staff be less afraid and thus, better able to department or group. collects donations throughout the year to act. Vendor List respond to credit unions in need when a dis - Vendors who can supply the aster strikes. The foundation also solicits credit union with office space Hold simulations several times a year. It is and other necessities during the crucial to make the simulations as real as donations for specific disasters affecting time of recovery. possible. Have your most skilled writers credit unions around the world. Off-site Storage Designate an off-site storage meet with the security administrator and facility within a reasonable write a couple of drafts of the scenario. To make a contribution to the Worldwide distance from the credit union Foundation send a check or money order to protect stored property Keep it a secret, but go ahead and consult and records. to the World Council of Credit Unions’ local authorities. In case of a simulation Secure Storage drill for a tornado, invite authorities to Worldwide Foundation, 5710 Mineral Facilities to store back-up Point Road, Madison, WI, 53705. For records the credit union needs observe and give guidance to the staff par - to keep itself in operation. questions regarding the foundation or how ticipants. Response Procedures to make a donation, please Immediate response proce - Top managers should lead the charge contact Mary Chapman, World dures for the DRT and DAT. Council chief financial officer at mchap - Insurance List instead of catching up on paperwork while List of asset protection and everyone else scrambles. “Staying aloof,” [email protected]. insurance coverage. says O’Dell, “sends the wrong message to Trauma Counseling Resources List of counseling resources other staff, leaving top management unpre - readily available. pared in a real crisis and it undermines the Plan Testing Procedures simulation’s overall effectiveness.” Forming a Help Network Assistance from other credit unions and retired employees can help your credit union recover more quickly. When Missouri Pacific Federal Credit Union was hit with 18 inches of rain run-off two local credit unions and their CEOs helped remove carpeting and move furniture. Although the credit union was able to resume service to its members after being closed only one day, it was at least two months before structural repairs were com - plete. ~ 11 ~ People-to-People The Way Forward –by Michael Beall, Manager of Governmental Affairs and Partnerships, WOCCU

COUNTRY INDICATORS National Capital: Paramaribo Government Type: Constitutional Democracy Population: 433,998 (July 2001 est.) Unemployment rate: 20% (1997) Inflation Rate: 78% (2000 est.) Exchange Rate: 2,178.50 guilders/US$1 GDP:US $1.48 billion (1999 est.) GDP per Capita: US$3,400 (1999 est.)

Source: CIA Fact Book

CREDIT UNION INDICATORS l-r: André Misiekaba, CEO of De Schakel Credit Union; Harold Jap A Joe, and regulation is crucial to Credit Unions: 19 chairman, GODO CU; Dennis Dollar, chairman, NCUA; Reginald Tjon A Kon, Members: 8,628 secretary, De Schakel CU; Agnes Choennie, director of CU supervision, enable credit unions to fulfill Savings: US$300,494 Central Bank of Suriname; Ingeborg Geduld Nijman, director of supervision for their mission of providing access Loans: US$204,884 financial institutions, Central Bank of Suriname; Carlho Wijdh, CEO, GODO CU. to affordable financial serv - ices in Suriname. “GODO is willing to do Some things seem destined to have a happy ending no matter what whatever we need to do to obstacles and challenges exist. The partnership between the strengthen our credit union and Suriname and North Carolina credit union movements have that offer the services our members feeling. Both movements have want, such as transaction survived some tough times in recent years—hyperinflation in accounts, foreign currency Suriname that reached more than 500% in the late 1990s and the bat - accounts and ATM access,” tle with the banks that started in North Carolina (NC) and ended up stresses Wijdh. Updating the in the halls of the U.S. Supreme Court and Congress in 1998. credit union law to allow for full supervision by the Central Bank Marc Schaefer, CEO of Truliant Federal Credit Union, of Suriname is the way Winston-Salem, NC has been involved in both movements’ battles. forward in the opinion of De Schaefer grew up in Suriname, a country of 400,000 people located Schakel,” adds Misiekaba. above Brazil on the northern coast of South America. In 1996, platform is built there as well.” Schaefer was tapped by World Council to be involved in a project Updating a credit union law funded by the Inter-American Development Bank to assist the coun - is a task in which Larry To accomplish that end, try’s credit unions in reaching members who wanted to start microen - Johnson, CEO of the North WOCCU and NCCUN have terprise businesses. That work led to the Suriname – NC partnership, Carolina Credit Union been working via the part ner - signed in 1998. Network (NCCUN) has ship, funded in part by the some experience. Larry National Credit Union In that work, Schaefer met two men who are responsible for build - worked at NCCUN to lead Foundation, to advocate such a ing much of the credit union movement in Suriname—Carlho credit unions’ efforts to change with officials from the Wijdh, CEO of GODO Credit Union and André Misiekaba, change the U.S. federal law on Central Bank of Suriname. That CEO of De Schakel Credit Union. Wijdh and Misiekaba are as field of membership in 1998 and advocacy led to an internship for different as night and day. Wijdh is a soft-spoken man who has North Carolina law on predato - Ingeborg Geduld Nijman and built GODO by focusing on technology and delivery of services ry lending in 1999. Johnson Agnes Choennie of the Central that stand out in a developing country. Misiekaba is immediately says, “Plain and simple, credit Bank of Suriname to study cred - engaging and has built De Schakel by reaching out to serve many unions need good legislation in it union legislation and regula - unbanked citizens of this tropical country. Both are passionate order to grow and providing that tion, as well as credit union oper - about the role credit unions can play in the development of platform is the main responsibil - ations at the National Credit Suriname. ity of any league. NCCUN is Union Administration working with WOCCU and The partnership is the vehicle for Schaefer, Wijdh and Misiekaba to Suriname to make sure that this Continued on Page 17 focus on how to expand the reach of credit unions in Suriname. All are convinced that updating Suriname’s credit union legislation ~ 12 ~ Spotlights on Development Changing Perception –Macedonia’s FULM Savings House –by Martha Ninichuk, Macedonia Project Director, WOCCU

COUNTRY INDICATORS National Capital: Skopje World Council of Credit Savings House. Government Type: Emerging Democracy Unions, Inc. (WOCCU) has Population: 2,046,209 (July 2001 est.) worked diligently in Macedonia is now split into 14 Population below poverty: 25% (2000 est.) Macedonia, a country regions and each region has an Unemployment rate: 32% (2000) Inflation Rate: 11% (2000 est.) that has been in association club. When an Exchange Rate: 65.904 denars/US$1 economic transition interested person seeks informa - GDP: US$9 billion (2000 est.) since it gained independence tion regarding FULM Savings GDP per Capita: US$4,400 (2000 est.) from Yugoslavia in 1991. House, he/she is directed to Source: CIA Fact Book As a result of the the club leader in the region. CREDIT UNION INDICATORS Republic’s collapse, the If the person wants to become Credit Union Locations: 6 banking system reor - a member, the club leader Members: 1,273 ganized for an independent instructs him/her to contact Savings: US$186,767 Loans: US$375,582 country. Many the central offices of the savings *Loans made from founding capital Macedonian citizens house. With the association (Dec. 2001) were victims of pyramid clubs in place, FSH is able to schemes in the late 1990s reach the entire population of and lost personal savings. Further mistrust in financial institu - Macedonia. central office promised tions occurred with the failure of a major savings house in the the members they would Bitola Region of Macedonia in 1995. Skepticism is still evident, The next step was to begin a receive loan disbursement with approximately 70% of Macedonians saving in foreign cur - marketing campaign. immediately upon approval, but rencies including: the deutchmark, Swiss franc and now the FULM Savings House a snow storm dumping a foot euro. The majority of these people do not save hard currencies developed an advertising and a half of in financial institutions. Instead, people keep currency hidden campaign to promote that they snow made travel through out at home for easy access and ease of mind. are “different from the oth - the country virtually impossi - ers.” The campaign educat - ble. Knowing the impor tance Because of regulatory restrictions and non-credit union specific leg - ed the public in regards to of keeping a promise to instill islation in the country, the WOCCU Macedonia-FULM Savings credit union philosophy, dem - trust, FSH central employee, House (FSH) needed to be innovative and flexible. A financial sys - ocratic structure and the Alexandar Damjanovski, tem was developed to provide access to services for Macedonians, FULM Savings House. personally made a decision along with a consolidated program to educate members about cred - Self- governance of the credit to disburse the loans, on it unions. The program became successful working under the name union structure proved to time, as promised. Savings House, which was once widely mistrusted. be an important link in rein - Alexandar took it upon himself stating the trust of To reach the entire population of Macedonia, a network credit Macedonians when union system was devised. FULM Savings House currently has a joining FULM Savings network of four branches throughout the country and a central House. Every brochure, pam - office located in the capital city Skopje. Each branch has its own phlet, radio advertise ment field of membership. Even with the network of branches there still and TV ad states the sav - was a ings and credit coopera - large segment of the population ineligible to join the tive message. savings house. During December 2001, 10 For people not covered within the branch network, the FSH members from the Bitola central offices expanded its field of membership. region applied and were FULM association clubs were formed and used as an organiza - approved for loans. The tional tool. Citizens of Macedonia could join an association club Official opening of the Kavadarci Branch and through their membership become eligible to join FULM FULM Savings House, Dec. 2001.

~ 13 ~ Spotlights on Development – (cont’d) FULM Savings House

For 2002 FULM Savings House is deter - mined to open two additional branches within its network. An important fifth branch is scheduled to open in the Bitola region during the summer of 2002. Not only is it amazing that the region has shown support for the FULM Savings House, but more importantly the people in the Bitola region sought out WOCCU to serve their area.

Since WOCCU and FULM Savings House have prospered in an economically challenging and politically difficult time, the future Stephen Haynes (left), USAID mission director and Vlado Gurev, initiative group leader (middle) at the looks bright for them. At the comple - Kavadarci branch opening ceremonies of FULM Savings House. tion of the project in August 2002, Macedonia will have a savings house to take a six-hour train ride to Bitola. Had Macedonia during 2001. From with a strong infrastructure and strong he not made the February to October 2001, Macedonia was operational and financial management trip, the waiting period for loan in the midst of a crisis between ethnic procedures. FULM Savings House will disbursement would have been greater Albanians and Macedonians. The west be a financial institution that works for the than three weeks. Service like this is how side of the country was completely financial development of the individ - the FULM Savings House is winning back involved in this conflict; police check - ual the country. points were placed throughout the country in Macedonia. and citizens felt a heavy military presence . Making Headway There was real concern CUs Help People The results of the FULM Savings that the whole country would become Become a Community House are amazing. During the last 12 involved in civil war. The Macedonian Slavjanka Gersimovska lives in the village months, savings deposits have grown economy slowed and people were not will - of Dobroshte, in the Tetovo region of 280%, loan growth 446% and total mem - ing to make long-range business commit - Macedonia. Gersimovska, a mother of bership is at 117%. Even working under ments when the safety of the region was so three and her family manage to survive on the label of a “savings house,” people are unpredictable. People did not know if they the modest income they receive from her and learning the would have jobs from one day to the next her husband’s pensions. The family also difference of FSH and are willing to put and were afraid they would have to flee receives a small income from aside their perceived risk . At a meeting their country. with Liljana Bozinovska, director of the Macedonia Deposit Insurance Fund, it was During this entire period, FULM reported that when comparing FULM Savings House prospered. Members con - Savings House to other savings house tinued to deposit their savings and in institutions in Macedonia, FSH ranks first return FSH continued to grant loans. in the number of individual savers and sec - Even though most other ond in the rate of growth. National sta - financial institutions in the country tistics for 2001 reflect that FULM Savings stopped granting loans, FULM Savings House grew four times more in savings House did not have one delinquent than other loan—even within the branch located in savings houses. Nerashte, the heart of the conflict region.

These statistics have even greater impor - The Future tance in view of the political climate of

~ 14 ~ embroidery pieces that Gersimovska and her eldest daughter produce and sell on consignment in local boutiques. “What is really important for me is that I secure a stable future for my children. We have three children; two are students at universi - ty, studying political science in Skopje. My youngest daughter also enrolled in the same courses at the university in order to save money on books.”

“One of the community members in Dobroshte told me there was a new credit Slavjanka Gersimovska poses with the manager of her credit union, Sheip Jaferi. union in Nerashte, a nearby village—so I visited the branch—where the branch manager went to a great deal of effort to for 27 years had a bank as part of the com - explain about the services,” said pany group and it was here that I was most Gersimovska. The credit union had loans “At the moment, I’m on a waiting list to disappointed,” she added. for farmers and consumers, but they did receive a hip brace. If it doesn’t arrive by not have a specific product to meet March, I will apply for another loan so A Credit Union Community Gersimovska’s needs. Keen to help that I can have an operation,” she con - “One of the things I miss from my child - Gersimovska, they adapted the tinued. In the future, Gersimovska hood is the companionship and closeness in conditions of another product and devel - also hopes to take out a loan to further the communities. These opportunities are oped a tailor-made loan that would meet develop and promote her embroidery now made available by credit unions--to be her needs. Gersimovska borrowed $400 to work as a small business, which will involved and to be part of a community pay for her where people help each other—now days children’s university fees. “Because I am a One of the things these opportunities are rare. That is why pensioner, I needed to find two guarantors I miss from my I’m so grateful to the credit union. When employed in budget “ the bank declined my small loan request, companies, which was easy for me. I joined childhood is the the credit union was there to help me. It is the credit union and they gave me a loan, these types of institutions that give back to which I have repaid. Now any extra companionship the community that are so rare. I hope money I have, I deposit as savings in and closeness with - FULM will become part of more com - the credit union,” she said. munities. With unemployment so high, in communities. it would be great to have small loans to Once her loan was disbursed, These opportunities help set up small businesses so that people Gersimovska gave her payments to a friend can create employment for themselves,” from her village—who worked in made available by explained Gersimovska. Nerashte—to make the payments on her credit unions... behalf. During the crisis there was no way of getting to the credit union to make loan – Slavjanka payments. Gersimovska ” “I tried to call the branch but the tele - phones were also out in the generate income for her family village. I managed to get through to the and herself. central office and spoke to the director who ensured me that the credit union Gersimovska is grateful to the credit union would not charge me a penalty for making for its customer service and the extent it a late payment,” said Gersimovska. went to help her. “Prior to FULM, I applied for loans at all of the banks in Tetovo and was declined because I was a pensioner. The company I was employed at ~ 15 ~ Spotlights on Development – (cont’d) A Benchmark for Other Provinces –WOCCU Vietnam Project (GDP) is US$191. CFI servic - –by Mike Coller, Public Relations Intern, WOCCU es are focused on middle- class and poorer households, as well as microentrepreneurs. COUNTRY INDICATORS The Women’s Union National Capital: Hanoi Government Type: Communist State manages and staffs the CFIs. Population: 79,939,014 (July 2001est.) Ranking high in the list Area: 329,560 sq km (slightly larger than of priorities for the New Mexico) project is the implemen ta - Inflation Rate: -0.6% (2000 est.) Exchange Rate: 14,530 Vietnam tion of updated, consistent dong/US$1 (Jan. 2001 est.) accounting and the introduc - GDP:US $154.4 billion (2000 est.) tion of supervision based on GDP per Capita: US$1,950 WOCCU’s PEARLs (2000 est.) Monitoring System. Many of the Source: CIA World Factbook Community Financial Institution staff in Can Loc district, Ha Tinh, Vietnam. women running these CFIs work part-time and are busy When World Council of Credit Unions, Inc. (WOCCU) takes on farming people, often with rel - development projects around the world, the task that lies ahead is atively low levels of education. never an easy one. This has certainly been the case with WOCCU’s Shifting over to new account - Vietnam project in Ha Tinh province. ing practices may be a difficult Ha Tinh’s community financial institutions (CFIs), which operate transition, but not impossi - much like credit unions, are run by members of the Vietnam Women’s ble, as William Smith, project Union, a popular association with 11 manager explained, million members throughout the country. Though the CFIs are not “Overcoming obstacles will legally registered, the Women’s Union gains its legal status from the require building consensus on ect will develop a set of tried Communist Party of Vietnam. One goal for WOCCU’s project, the content and design of any and tested tools (accounting though, is true legal recognition for the CFIs, which will help facili - new accounting and supervisory system, internal controls, exami - tate enforcement of legal tools to be introduced to the nation guidelines, etc.) that will contracts, access to banking services and deposit insurance. CFIs as well as ensuring that tools be disseminated for wider appli - designed by the project are easy cation throughout the microfi - When U.S. armed forces withdrew from Vietnam following a cease- to use and understand.” nance com munity.” Moreover, fire agreement in 1973, they left behind a war-torn shell of a country. WOCCU expects that the proj - A vast majority of Vietnamese people WOCCU Vietnam works ect will increase public and suffered from what seemed like hopeless circumstances, despite with representatives from the government confidence in attempts by the United States and other countries to provide econom - Central Women’s Union, State Women’s Union CFIs, an ic aid. Bank of Vietnam, Ha Tinh essential key to mobilizing People’s Committee and three savings. After what some consider a miraculous rebuilding process, the non-governmental organiza - people of Vietnam, through internal tions to form a steering com - Regular follow-up and programs as well as assistance from outside agencies, made tremen - mittee to help work on t he assis tance in the field should help dous headway toward reaching a more framework to reinforce the impact of train - stable economy through sound financial systems. for implementation of the ing. Despite being in its infan - project. “I expect this cy, the project Maintaining reliable and affordable financial services is often a chal - project will lead to a wider appre - is already being viewed lenge for staff and management of CFIs in provinces throughout ciation of the importance of insti - by locals as a sign of a prom - Vietnam. WOCCU plans to assist the Vietnam Women’s Union in tu tion building and financial ising future. alleviating these pressures and ensure long-term sustainability of the safety and soundness among institutions in Ha Tinh, one of Vietnam’s 58 provinces. Jointly funded savings by the United Kingdom’s Department for International Development and credit organizations, and the U.S. Agency for International Development, the 14- projects and supporters in month, US$500,000 project supports one of the poorest provinces Vietnam,” said Smith. “In par - in Vietnam, where per capita gross domestic product ticular, it is hoped that the proj -

~ 16 ~ People-to-People – (cont’d)

Continued from Page 12

(NCUA) and in North Carolina credit lenge is now well underway,” Gain e-access to a host of new products. Visit unions from February 22 – March 11, 2002. says Ingeborg Geduld Nijman. World Council’s website to take advantage of the Wijdh, Misiekaba and credit union vol - The Central Bank seeks to have resources offered through the Credit Union unteers Harold Jap A a new credit union law in place Executives Society. Help your credit union stay Joe (GODO) and Reginald Tjon A Kon (De by early next year, based in part ahead of global trends impacting the way you do Schakel) joined the two officials for more on input from the Suriname business and serve members’ changing needs. than two weeks of training that included credit unions, WOCCU and attending CUNA’s Governmental Affairs NCCUN. www.woccu.org Conference. Your Product The happy ending may be for Purchases Support The six were welcomed by new NCUA Suriname credit union mem - Board member Joanne Johnson and spent bers who will have stronger Development! time with Chairman Dennis Dollar getting credit unions offering a his views on all topics credit union. The wider range of services as a group spent two days discussing safety and result of the People-to-People soundness issues that included in-depth Partnership between analysis of the agency’s rule making Suriname and North process, supervisory efforts, examination Carolina. procedures and answering the question, “How does a regulator regulate safety and • CUES Online University soundness without standing in the way of credit union growth and innovation?” Senior NCUA staffers, Dennis Winans, Anthony LaCreta, Bob Fenner and Cliff Northup took part in the two day session.

“We have seen much about how credit unions are able to grow here in the U.S. Our challenge in Suriname is to have credit unions become even stronger financially, so the Central Bank may work CUES Publications • CUES Meetings & Conferences with credit unions to add services mem - bers want. The dialog for meeting that chal -

Executive Forum – (cont’d)

Continued from Page 1

League and New York City credit unions, all cooperative principles that we as which had been affected either directly credit union people value so highly. Look or indirectly by the September 11 for more on the credit union values in the attacks. We stopped at United Nations upcoming 2001 WOCCU Annual Report Federal CU, Bethex FCU, Entertainment to be released after our annual general Industries FCU, Saks Fifth Avenue FCU meeting in June and visit our website at and Lower East Side People’s FCU. In the www.woccu.org. after math of the events, each of the credit unions continued to reach out to their members and play an important role in re-establishing a sense of stability. Here again, more examples of the credit union values in action.

Sharing opportunities, enabling millions of people to grow, trans parency and accountability, these are

~ 17 ~ Feature Article – (cont’d) Savings Mobilization

Continued from Page 3

that institution to be able to safeguard tution have in place strong policies and their savings. In offering savings prod - practices for credit screening and risk When to Mobilize Savings ucts, an institution takes on the analysis so that the loans financed by sav - responsibility of ings are collectible. Credit risk manage - Three key elements repeatedly stand protecting the deposits of savers. ment includes strict delinquency moni - out as prerequisite environ mental fac - toring, provisioning and collection proce - tors for mobilizing WOCCU’s minimum critical elements for dures. savings: manageable inflation, legal responsible savings mobilization include: authority and supervision. entrepreneurial institutional vision, pro - Measuring Health fessional staff, effective governance struc - The ability of a credit union to In this article, we addressed savings disci - ture, prudential financial discipline, successfully mobilize savings is plines along the lines of protection; we capacity for credit risk analysis and risk contingent first upon a macroeconomic covered capital within the financial struc - manage ment, institutional security environment which allows the savings ture of the institution; and we talked and institution to operate at rates which are about asset quality and liquidity. All of internal controls. viable and sustainable while providing a these are some of the indicators that World Council uses in our PEARLS real positive return to protect the value Safe Money of Monitoring System. PEARLS was member savings. “There are three principal lines of defense developed in response to a need for more that WOCCU establishes to protect sav - accurate and useful financial infor mation Savings mobilization is a pact between ings. The first line is simply provisioning in WOCCU development projects. David parties: the institution receiving the sav - for loan losses in response to the observed Richardson, senior manager technical ings and the indi vidual placing savings in risk to the institution, the delinquency the institution. For that reason, savings and expensing from the income state - services need to operate within an estab - ment. This serves to absorb normal losses. lished legal framework that identifies which The second line of defense is the reserves, institutions, under which criteria or institutional capital. The surplus that are able to receive savings from members we accumulate over time acts as a cushion or from the public. The legal framework against the extraordinary losses that the should also identify what recourse savers credit union is unable to foresee and that have to recover their savings from the insti - provisions aren’t able to absorb. Third is tutions. the paid-in capital or equity, the shares that members invest as risk capital in their Credit unions are able to mobilize sav - institutions. We also highlight establish - ings responsibly and more ing standards for asset quality, delinquen - effectively within the safety of an ade - cy, non-earning assets and earnings for quate regulatory and supervisory frame - the institution that work. Institutions that mobilize voluntary generate the surplus and the capital. deposits should be supervised by the government The WOCCU standards of excellence regulatory agency responsible for the require that savings institutions provision financial sector. Effective super vision for 100% of loans delinquent more than requires a sound legal system, formalized 12 months and at least 35% of loans audit requirements, supervisory moni - delinquent less than 12 months. Savings toring capacity, an established regulatory institutions should establish and main - framework and authority for enforce - tain capital reserves and retained earnings at ment. 10% of total assets.

By depositing their funds in an institu - Risk Management tion, savers take a leap of faith in trusting As a credit union mobilizes savings, liq - uidity increases and those funds are directed out as loans back into the com - munity. It is crucial that the savings insti -

~ 18 ~ development and co-author of PEARLS explained, “The PEARLS system meas - For more information Savings Best ures these protection indicators. It also on World Council’s Practices measures the structural indicators of the credit union developments institution, so that one can see how the projects, visit the new In order to strengthen and expand savings institution evolves over time. PEARLS Microfinance and mobilization in underserved communi - measures growth, as well. It acts as an Development section of ties, WOCCU launched the Savings Best early warning system that alerts board WOCCU’s website at Practices project in 2000. The project www.woccu.org. members, managers, accountants offers credit unions the opportunity to and examiners to potential problems share grassroots lessons learned with before they arise.” others. Concurrently, it offers credit unions the prospect of placing “World Council of Credit Unions is com - savings mobilization within the safety of an mitted to make its vision of ‘Quality adequate regulatory and supervisory Credit Unions For Everyone’ into a framework. Together with the German reality, enabling millions of people to Confederation of Credit Unions, grow by providing access to affordable WOCCU has financial services. The tangible results as conducted training conferences in Latin shown in our credit union development America: Best Practices in Savings projects prove that ‘real’ returns on devel - Mobilization and Credit Union opment dollars are achieved, and mem - Supervision . The project will culminate bers’ lives changed for the better,” noted in the publication of a guide to savings Arthur Arnold, president and CEO, mobilization, WOCCU. complete with operational tools for implementation, written by practitioners for practitioners. WOCCU plans to release the book at its seminal conference on Best Practices in Savings Mobilization November 5-6, 2002 in Washington, DC. For more information or to register for the conference visit the World Council website at www.woccu.org/education/Savings BP/index.htm.

To learn more about savings mobilization and the marketing component, please contact Janette Klaehn at (608) 231-8848 for a free brochure.

*Sources: Safe Money, Glen Westley and Brian Branch; Technical Guide to Savings Mobilization , Janette Klaehn, Anna Cora Evans, Brian Branch

~ 19 ~ Supporters Corner Credit Union A Long Tradition of Support Honorees

It was a logical extension of the Jim McMahon, president, ILCU presents a gift to CUNA for Wayne Nygren, president tradition I have just described. Credit Union House. and chief executive officer, In 1997, Central co-hosted Credit Union Central of British Columbia WOCCU’s World Forum in Vancouver, together with Credit Union Central of Credit Union Central of He was the first non- Canada. Our per spective on the British Columbia (Central) is American to be elected presi - international movement was WOCCU-CUES Philippines the central banking facility and dent of CUNA probably more focused than accepts the Herb Wegner Award trade association for the International and was ever with hundreds of British for outstanding program. province’s 65 inde pendent instrumental in its restruc tur - Columbian credit union credit unions. As the ing, which saw the leaders having met their coun - “umbrella organiza tion,” formation of WOCCU. He terparts from around the to Canada. Central represents a con - also took a special interest in world. When the opportu - sumer-oriented, full- serv - helping to foster the credit nity to become a WOCCU I mentioned the involvement of ice retail financial union movements in Supporter arose some time later, B.C.’s credit union leaders in system that serves nearly 1.5 mil - Australia, the Caribbean it was a natural fit for Central. various international activities. lion members and has and Latin America. Every one of us found that expe - CAD$25 billion in assets. CU World: What are the bene - rience to be tremendously Since then, many other fits that international develop - inspiring, personally and pro - Central itself has some B.C. credit union leaders have ment brings to credit fessionally. The benefits are very CAD$3.8 billion in assets. followed Rod Glen’s example. unions in British Columbia? much a two-way street. From its office in Vancouver, In my own case, I took part in a B.C. 275 employees provide a WOCCU-sponsored mission Nygren: B.C. has a well- One of our younger credit wide range of services to cred - in the early 1990s to help pave developed and mature union managers, Lana it unions, including pay - the way for credit unions in credit union system that Catalano, was among the first ments settlement, post-Communist Hungary. plays a leading role in the eco - five recipients of WOCCU’s liquidity management and And one of our former nomic life of our province— new Young Credit Union trade association functions. chairpersons, Tod Manrell, one in three British Professionals scholarship last Credit Union World recently served on WOCCU’s Board Columbians is a member. year. I’m sure that sharing expe - interviewed Central’s president from 1989 to 1997, including a Knowing what credit unions ri ences with her international and chief executive officer, term as president. have done for B.C. we’re eager colleagues will be invaluable to Wayne Nygren, asking him to share what we have learned her career, and so the tradition about Central’s support for Through this kind of with those in movements else - continues. the international development involvement, B.C. credit where. During the 1997 World programs of World Council of unions are very conscious of the Forum, for example, many B.C. Credit Unions, Inc. international credit union credit unions hosted interns, movement and the need to giving them a chance to see how CU World: How do Central’s develop cooperatively-owned we operate here. organizational values tie into financial institutions, especially international development? in countries where people have And with so much internation - no access to basic financial al migration to Canada, it’s Nygren: The provincial services. Central’s role obviously a big advantage if credit union system that reflects that consciousness. immigrants already have an Central represents has a long understanding of credit unions, tradition of involvement on the CU World: Why did Central based on their experience in international scene. One of our choose to become a sup porter their home countries. That will pioneering leaders, Rod Glen, of the World Council of Credit make them more likely to join was very active internationally. Unions? credit unions when they come

~ 20 ~      World Council of Credit Unions, Inc. (WOCCU) thanks the many individuals, credit unions and credit union organizations—such as corporate credit unions, leagues, foundations and credit union suppliers—that have chosen to become “SUPPORTERS.” Their desire to commit, connect and engage directly with World Council enables millions of people to grow.

Individuals Fort Knox FCU - Ft. Knox, KY —Minimum of $1,000 annually Gwinnett FCU - Lawrenceville, GA Arnold, Arthur and Barbara - Madison, WI Heritage Family CU - Rutland, VT Cutter, Dennis and Shelby - Spokane, WA Houston Postal CU - Houston, TX Chatfield, David and Rebecca - Upland, CA Jet CU - Indianapolis, IN Development Educators - Class of 2001 John Deere Community CU - Waterloo, IA Development Educators - Summer Workshop 2000 Kinecta FCU - Manhattan Beach, CA Jeffries, Jim - Detroit, MI MECU West - Scottsdale, AZ Jolette, Barry - Redwood City, CA MetroPacific Community CU - Seattle, WA Mapother, William - Louisville, KY Motorola Employees FCU - Shaumberg, IL McCartney, Judy - Santa Ana, CA Mutual Savings CU - Birmingham, AL Nicholls, Rob and Chris - Pyrmont, Australia * New Mexico Educators FCU - Albuquerque, NM Western CUNA Mgmt School - Class of 2003 Numerica CU - Spokane, WA WOCCU Project Directors (Keane & Kitsch) Orange County CU - Santa Ana, CA Orange County Teachers FCU - Santa Ana, CA Credit Unions Pacific Service CU - Walnut Creek, CA —Minimum of $1,000 annually Pentagon Federal CU - Alexandria, VA Australia Redwood CU - Santa Rosa, CA        Australian National CU Ltd. - Sydney Research Federal CU - Warren, MI  CU Australia - Brisbane San Mateo CU - Redwood City, CA For more information about the benefits of Education CU Co-operative - Victoria SEFCU - Albany, NY becoming a WOCCU Supporter contact: New South Wales Teachers CU - Sydney Selco CU - Eugene, OR Mary Chapman Chief Financial Officer Queensland Teachers CU - Queensland Self-Reliance Ukrainian FCU - Chicago, IL World Council of Credit Unions, Inc. Brazil Service First FCU - Danville, PA * 5710 Mineral Point Road * COCEDAE CU - Rio De Janeiro Service One CU - Bowling Green, KY Canada Madison, WI 53705 USA Silver State Schools Family CU - Las Vegas, NV Telephone: (608) 231-7457 CU Central of British Columbia Southwest Airlines FCU - Dallas, TX CU Central of Nova Scotia Fax: (608) 238-8020 Tennessee Teachers CU - Nashville, TN E-mail: [email protected] * Envision CU - British Columbia Texas Dow Employees CU - Lake Jackson, TX HEPCOE CU Ltd - Toronto Tremont CU - Braintree, MA Get involved—see our website at: Hussar Credit Union - Alberta Truliant Federal CU - Winston Salem, NC www.woccu.org Woodslee CU - Ontario United Nations FCU - New York, NY Ireland * USA Federal CU - San Diego, CA As part of becoming a WOCCU Supporter, you will * Dundrum CU Ltd. - Dublin US FCU - Bloomington, MN receive our current Supporters Report Booklet Newbridge CU Ltd. - Newbridge Visions Federal CU - Endicott, NY (pictured above) to show the many accomplishments RTE CU - Dublin Water & Power FCU - Los Angeles, CA which are a direct result of your contributions! Rush CU - Rush Xerox Federal CU - El Segundo, CA Jamaica Kingston Co-op CU - City of Kingston Corporate CUs, Foundations, Kenya Leagues & Organizations AFYA Co-op Savings & Credit Society Ltd.-Nairobi —Minimum of $10,000 annually Kenya Bankers SACCO Society - Nairobi The Netherlands Scotland Rabobank Nederland - Amsterdam Capital CU Trust - Edinburgh United States Dalmuir CU - Dalmuir Alabama CU League - Birmingham, AL United States American Association of CU Leagues AEA FCU - Yuma, AZ - Madison, WI America First CU - Ogden, UT Arizona CU League - Phoenix, AZ American Baptist CU - Covina, CA California & Nevada CU Leagues American Heritage Federal CU - Philadelphia, PA - Rancho Cucamonga, CA Arkansas CU League - Little Rock, AR Colorado & Wyoming CU Leagues Arrowhead Central CU - San Bernardino, CA - Arvada, CO Atlantic Regional FCU - Brunswick, ME Credit Union Executives Society - Madison, WI Bayer FCU - Elkhart, IN Empire Corporate FCU - Albany, NY BF Goodrich FCU - Tuscaloosa, AL First Corporate CU of Arizona - Phoenix, AZ * Boeing Employees CU - Seattle, WA Georgia CU Affiliates & Georgia Central CU Bond Community FCU - Atlanta, GA - Duluth, GA Boulder Municipal Employees FCU - Boulder, CO Massachusetts, New Hampshire & California Bear FCU - Los Angeles, CA Rhode Island CU Leagues California CU - Glendale, CA Michigan CU League - Southfield, MI Cincinnati Central CU - Cincinnati, OH Ohio CU League - Dublin, OH Citizens First CU - Oshkosh, WI Pennsylvania CU League & Pacul Services Co-op Services CU - Livonia, MI - Harrisburg, PA, USA CUNA CU - Madison, WI Texas CU League - Farmers Branch, TX Denver Public Schools CU - Denver, CO Western Corporate Federal CU (WesCorp) Eastman CU - Kingsport, TN - San Dimas, CA Educational Employees CU - Bridgeton, MO —$50,000 annually and above Farmers Insurance Group FCU - Los Angeles, CA CUNA Mutual Foundation - Madison, WI First Education Federal CU - Cheyenne, WY National Credit Union Foundation - Madison, WI First Entertainment CU - Hollywood, CA US Central CU - Overland Park, KS First Flight FCU - Havelock, NC First South CU - Bartlett, TN Florida Central CU - Tampa, FL

* New Supporters since January issue of Credit Union World. List current as of March 19, 2002. ~ 21 ~ Central Europe’s World-Renowned Speakers Include: Lech Walesa , renowned shipyard electrician, best-kept secret, Solidarity Trade Union leader, Nobel peace prize laureate and Poland’s first democratically elected Poland is an historic president has been invited to speak on his vision for a “Century of Solidarity.” and exciting venue for the Marek Kaminski , famed explorer and founder of Marek Kaminski Foundation, will share his world’s credit union and adventures, including his triumph as the first man to have reached both the North and South Poles financial cooperative leaders on foot in one year. to exchange information and Dennis Dollar , chairman, National Credit Union Administration (NCUA) will cover “The explore alliances for the Credit Union Difference in Action.” Jasmine Birtles , author of 21 books, plus future of the international countless comedy routines for the London comedy circuit and sketches on BBC radio cooperative financial system and commercial stations speaks on “Corporate Accountability and Other Laughing Matters.”

in today’s global economy. To view additional speakers, a complete schedule and updates on the Institute visit our webpage at www.woccu.org

For more information, Co-sponsored by the National contact World Council at: Association of Cooperative Phone: (608) 231-7130 Savings and Fax: (608) 238-8020 Credit Unions (NACSCU) E-mail: [email protected] Website: www.woccu.org

World Council of Credit Unions, Inc. PRSRT STD 5710 Mineral Point Road U.S. Postage PAID Madison, WI 53705-4493 U.S.A. Madison, WI Permit No. 2860