You probably know how this goes: you plan something, say 6 months in advance, and WHAM! the environment is different by the time the “event” rolls around. Welcome to our world.
Last December NEACH asked Nancy E Lake, Director of Training at ARC Risk, to present a webinar on Elder Financial Exploitation. Despite the amount of elapsed time, Nancy didn’t miss a beat. She included the very recently released FinCEN guidance into the presentation, even though we had no idea during planning that FinCEN was developing more robust guidance.
During the session, Nancy covered three areas that I think are not only incredibly relevant, but also quite timely given recent events.
- FinCEN 314b requests
Institutions need to understand the benefits and processes associated with a 314b request.
From FinCENs 314b Fact Sheet: Section 314(b) of the USA PATRIOT Act provides financial institutions with the ability to share information with one another, under a safe harbor that offers protections from liability, in order to better identify and report activities that may involve money laundering or terrorist activities. Participation in information sharing pursuant to Section 314(b) is voluntary, and FinCEN strongly encourages financial institutions to participate.
Considering most fraud is money laundering, and most elder exploitation cases are no exception, institutions who utilize 314b requests often gain more insight and evidence for their SAR narrative and investigation than those who do not use the option.
For more information on the registration process, safe harbor, and rulings, visit FinCEN 314b homepage.
- FIN-2022-A002 Advisory on Elder Financial Exploitation
On June 15, 2022, FinCEN issued FIN-2022-A002, an updated Advisory on Elder Financial Exploitation (EFE).
Nancy found this advisory provides stronger SAR narratives guidance than previous advisories. She elaborated on this during the session; in short, feeling that the Advisory “provides institutions with a stronger framework for developing narratives.” She also provided some tips on how to construct the SAR narrative and what to include for EFE cases.
I also believe there is a lot of benefit for FIs in the case studies FinCEN provided, especially for internal training and for institutions who rely on case studies for monitoring.
- External notification when the institution suspects EFE
During the session, Nancy talked about the benefits of IC3.gov, state reporting, and SAR narratives, “depending on the situation.” Nancy highlighted different possible indicators that a senior was being exploited or abused.
A member of the audience inquired “What if we can’t tell / don’t know, but suspect something is going on? Who should we contact?”
Nancy suggests, at minimum, contact your state’s equivalency of the Division of Senior Services. Note, your state may call this division by another name – for ex: in Missouri, it’s called the Division of Health and Senior Services, and in MA it’s the Office of Elder Affairs.
Most states designate financial institutions as mandatory reporters; as such, by law, requires the institution to report suspected senior exploitation and/or abuse to a designated division of the state for investigation. And, if the case meets SAR requirements, file a SAR as well.
If you missed this very timely, informative session, it’s not too late to get the information! Visit the event link to register to receive access to the recording.
Thank you, Nancy, for your informative presentation! We look forward to your BSA/AML insights in the future.
About ARC Risk and Compliance:
ARC Risk and Compliance is a NEACH member organization. They specialize in anti-money laundering (AML) compliance and the technology that supports financial institution’s AML compliance programs.
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AUTHOR: Rayleen M. Pirnie, BCJ, AAP, CERP
Director, Risk & Fraud
As the Director of Risk & Fraud for NEACH, Rayleen helps members identify the risks of daily activities, mitigate threats, and balance transactions with compliance obligations. Connect with Rayleen to read more of her blogs, articles, and posts.