DEAR BOARD OF DIRECTORS:

The National Credit Union Administration has been asked by the Office of Foreign Assets Control (OFAC), Department of the Treasury, to notify all credit unions of the laws and regulations relating to economic sanctions imposed against select foreign countries. The OFAC is responsible for administering a series of laws that impose sanctions against select foreign countries to further U.S. foreign policy and national security objectives. OFAC has promulgated regulations that implement the sanctions contained in these laws. The sanctions presently apply, in varying degrees, to Cuba, Iraq,

Libya, North Korea, and the former Yugoslavia (including Serbia, Montenegro, and Serb-controlled Bosnia). Therefore, any transactions, such as transfers of funds, to or from these countries areprohibited.

While credit unions may have little exposure to transactions involving these select countries, any violation of these sanctions can involve fines or imprisonment. Enclosed is a notice that contains the intonation necessary to assure that your staff is aware of the sanctions. There is a space to list a specific contact person in your credit union, if one has been selected. Any questions or requests for additional information should be directed to the Office of Foreign Assets Control at 202-622-2490.

This Letter will be updated and reissued periodically as changes occur in the list of sanctioned countries.