FinCEN Issues Advisory on Elder Financial Exploitation

FinCEN has issued Advisory FIN-2022-A002 on Elder Financial Exploitation (EFE), which involves the illegal or improper use of an older adult’s funds, property, or assets, and is often perpetrated either through theft or scams. The advisory highlights new EFE typologies and red flags since FinCEN issued its first advisory on the issue in 2011.

FinCEN’s EFE advisory highlights behavioral and financial red flags to aid financial institutions with identifying, preventing, and reporting suspected EFE. In line with the risk-based approach to compliance with the Bank Secrecy Act, financial institutions should perform additional due diligence where appropriate and remain alert to any suspicious activity that could indicate that their customers are perpetrators, facilitators, or victims of EFE.

In addition to filing a SAR, FinCEN recommends that financial institutions refer their older customers who may be victims of EFE to the Department of Justice’s National Elder Fraud Hotline at 833-FRAUD-11 or 833-372-8311 for assistance with reporting suspected fraud to the appropriate government agencies. For educational resources on EFE and scams targeting older adults, see the CFPB’s Office for Older Americans.

FinCEN’s advisory notes that financial institutions filing an EFE-related SAR should reference the advisory by including “EFE FIN-2022-A002” on SAR field 2 and mark the check box for elder financial exploitation.

Question of the Week

Q. How do I know that someone has passed the credit union counterfeit money? What should I do once I know it’s counterfeit?

A. The proper credit union procedure is to use the counterfeit pen on all large bills (50’s and 100’s). The practice will assure the credit union and its members that they are not passing along counterfeit notes. Also, the U.S. Secret Service provides a printable guide that identifies the security features in each denomination. The U.S. Currency Education Program also provides an online Teller Training program to teach staff how to authenticate Federal Reserve notes. Suspected counterfeit notes should be reported to the Secret Service through its USDollars website. The website includes additional guidance on handling suspected counterfeit currency.

Related Links

Know Your Money
Report Counterfeit Currency

Compliance Alerts

Community Development Financial Institutions Fund

Funding Opportunity: Community Development Financial Institutions Equitable Recovery Program (CDFI ERP): The Community Development Financial Institutions Fund (CDFI Fund) is launching the CDFI Equitable Recovery Program (CDFI ERP) to provide awards of up to $15 million to Certified Community Development Financial Institutions (CDFIs) for the following purposes: (1) to expand lending, grant-making and investment activity in Low- or Moderate-Income communities and to borrowers, including minorities, that have significant unmet capital or financial services needs, and were disproportionately impacted by the COVID-19 pandemic; and (2) to enable CDFIs to build organizational capacity and acquire technology, staff, and other tools necessary to accomplish the activities under a CDFI ERP Award. All Awards provided through this NOFA are subject to funding availability.

Consumer Financial Protection Bureau

Credit Card Late Fees and Late Payments: To support its rulemaking and other functions, the Consumer Financial Protection Bureau (Bureau or CFPB) is charged with monitoring for risks to consumers in the offering or provision of consumer financial products or services, including developments in markets for such products or services. As part of this mandate, the Bureau is seeking information from credit card issuers, consumer groups, and the public regarding credit card late fees and late payments, and card issuers’ revenue and expenses. For example, the Bureau is seeking information relevant to certain provisions related to credit card late fees in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act or the Act) and Regulation Z. Areas of inquiry include: factors used by card issuers to set late fee amounts; card issuers’ costs and losses associated with late payments; the deterrent effects of late fees; cardholders’ late payment behavior; methods that card issuers use to facilitate or encourage timely payments, including autopay and notifications; card issuers’ use of the late fee safe harbor provisions in Regulation Z; and card issuers’ revenue and expenses related to their domestic consumer credit card operations.

Prepared Remarks of Director Chopra on Credit Card Late Fees ANPR Press Call

Request for Information Regarding Relationship Banking and Customer Service: The Consumer Financial Protection Bureau (Bureau or CFPB) is seeking comments from the public related to relationship banking and how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets, as well as from their affiliates.

Agency Information Collection Activities: Comment Request: In connection with the rulemaking required to implement section 1071 of the Dodd-Frank Act, the CFPB will be developing a sample form for collecting the demographic data required for collection by the statute. This form is intended to show one example of a form that lenders, to facilitate their compliance with the statute, might provide to their small business customers. As contemplated by the statute, those small business customers will be able to choose the extent to which they complete the sample form or any other form presented to those customers by the lenders. The CFPB believes that the purposes of the statute will be furthered to the extent that small business owners understand the purpose and nature of the statutorily-required demographic data collection.

Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking (Regulation V): The Consumer Financial Protection Bureau (Bureau) is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), to address recent legislation that assists consumers who are victims of trafficking. This final rule establishes a method for a victim of trafficking to submit documentation to consumer reporting agencies, including information identifying any adverse item of information about the consumer that resulted from certain types of human trafficking, and prohibits the consumer reporting agencies from furnishing a consumer report containing the adverse item(s) of information. The Bureau is taking this action as mandated by the National Defense Authorization Act for Fiscal Year 2022 to assist consumers who are victims of trafficking in building or rebuilding financial stability and personal independence.

Office of Foreign Assets Control

Notice of OFAC Sanctions Actions (6.22.2022): The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing the names of two individuals that have been placed on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC’s determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

Notice of OFAC Sanctions Actions (6.23.2022): The U.S. Department of the Treasury’s Office of Foreign Assets Control is publishing the names of one or more persons that have been placed on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC’s determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

Questions? Contact the Compliance Hotline: 1.800.546.4465; compliance@nwcua.org.

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