Vol. XXXIV, No. 16 Elder Financial Exploitation - FinCEN AdvisoryI. IntroductionThe Financial Crimes Enforcement Network (FinCEN) has issued an advisory to alert financial institutions to the rising trend of elder financial exploitation (EFE) targeting older adults and to highlight new EFE typologies and red flags since FinCEN issued the first EFE advisory in 2011. For purposes of the advisory, EFE is defined as the illegal or improper use of an older adult’s funds, property, or assets. Additional information regarding trends and typologies of EFE and associated payments, as well as case studies on elder theft and elder scams are contained within the recent FinCEN advisory which may be viewed here on pages 3-8. II. Behavioral and Financial Red Flags A. Behavioral Red Flags Victims of EFE may have limited and irregular contact with others. For some, their only outside contact may involve visiting or communicating with their local financial institution, including at the bank branch, check-cashing counter, or MSB. Therefore, it is critical for customer-facing staff to identify and consider the behavioral red flags when conducting transactions involving their older customers, particularly suspicious behavior that also involves the financial red flags highlighted below. Such information should be incorporated into SAR filings and reported to law enforcement as appropriate. Financial institutions are reminded that behavioral red flags of EFE and the names of staff who witnessed them should be included in the SAR narrative to assist future law enforcement investigations. Behavioral red flags of EFE may include:
B. Financial Red Flags Identification of financial red flags of EFE and the associated payments are critical to detecting, preventing, and reporting suspicious activity potentially indicative of EFE. In addition to the financial red flags set out in DOJ and CFPB notices, financial red flags of EFE may include:
III. Suspicious Activity Reporting The FinCEN advisory also contains a refresher on the suspicious activity reporting and other relevant BSA reporting requirements which may be viewed here on pages 11-15. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
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