Board of Governors of the Federal Reserve System
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation
Financial Crimes Enforcement Network
National Credit Union Administration
Office of the Comptroller of the Currency
State Financial Regulators
Introduction
The Board of Governors of the Federal Reserve System (FRB), Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Financial Crimes Enforcement Network (FinCEN), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), and state financial regulators (collectively, “the agencies”), are issuing this statement to provide institutions supervised by the agencies (“supervised institutions”) examples of risk management and other practices that can be effective in identifying, preventing, and responding to elder financial exploitation.
This statement does not replace previous guidance on this subject issued by any of the agencies, does not interpret or establish a compliance standard, and does not impose new regulatory requirements or establish new supervisory expectations. It is intended to raise awareness and provide strategies to supervised institutions for combating elder financial exploitation, consistent with applicable legal requirements.1
Background
Elder financial exploitation is the illegal use of an older adult’s funds or other resources for the benefit of an unauthorized recipient.2 Elder financial exploitation can deprive older adults of their life savings in whole or in part, devastate their financial security, and cause other harm.
A recent study estimates annual losses from U.S. older adults as a result of elder financial exploitation at $28.3 billion.3 The U.S. Department of the Treasury’s 2024 National Money Laundering Risk Assessment described elder financial exploitation as a growing money laundering threat, which has been linked to more than $3 billion in reported financial losses annually.4 Furthermore, a FinCEN review of Bank Secrecy Act (BSA) report data found that financial institutions filed 155,415 reports related to elder financial exploitation between June 15, 2022, and June 15, 2023, associated with more than $27 billion in reported suspicious activity, which may include both actual and attempted transactions.5 In addition to financial losses, elder financial exploitation can also result in increased reputational, operational, compliance, and other risks for supervised institutions.6
Federal and state government agencies have raised awareness of elder financial exploitation and worked to educate supervised institutions and consumers about prevention and response strategies. In this statement, the agencies provide examples of risk management and other practices that supervised institutions could consider adopting.7 Additionally, Appendix A to this Statement provides a list of resources issued by federal and state agencies on this topic.
Section 1. Governance and Oversight
A number of laws and regulations related to consumer protection and safety and soundness may be applicable to instances of elder financial exploitation.8 Consistent with such laws and regulations, a supervised institution’s oversight strategies may include policies and practices to better protect account holders and the supervised institution from the impacts of elder financial exploitation.
Supervised institutions may consider enhancing or creating risk-based policies, internal controls, employee codes of conduct, ongoing transaction monitoring practices, and complaint processes to identify, measure, control, and mitigate elder financial exploitation, provided such policies do not result in age discrimination that is impermissible under the Equal Credit Opportunity Act (ECOA).9
Effective actions aimed at guarding against elder financial exploitation include open lines of communication among supervised institutions’ departments responsible for researching and responding to unusual account activity, for example, across functions such as BSA compliance, fraud prevention, and consumer protection, including fair lending. Compliance with applicable privacy or other legal requirements is necessary to ensure that the information of account holders remains confidential and secure.
Section 2. Employee Training
Supervised institutions may find it beneficial to provide clear, comprehensive, and recurring training for their employees on recognizing and responding to elder financial exploitation.10 Well-trained employees can increase a supervised institution’s ability to detect and report elder financial exploitation.
Employee training may include identifying red flags for different types of financial exploitation, providing proactive approaches to detecting and preventing elder financial exploitation, and detailing actions for employees to take when they have concerns. Customer-facing employees may be trained to identify transactional and behavioral red flags when conducting transactions for older adults, including via powers of attorney or other agents.11 Employees may also benefit from detailed escalation processes and written procedures that promote timely action for events they are most likely to encounter in their roles.
Federal law provides that a financial institution and certain employees are not liable in any civil or administrative proceeding for disclosing suspected elder financial exploitation to covered agencies if the financial institution has timely trained its employees on identifying elder financial exploitation.12
Section 3. Using Transaction Holds and Disbursement Delays
Supervised institutions have used transaction holds and disbursement delays to prevent consumer losses and respond to various situations that may involve elder financial exploitation. These practices should be used appropriately and in compliance with applicable laws and regulations.13
Some state laws permit supervised institutions to temporarily hold a transaction or delay a disbursement of funds when they suspect any type of financial exploitation, including elder fraud.14 These statutes generally provide timelines for transaction holds, and some provide immunity for institutions and employees who meet specific requirements.
Supervised institutions may benefit from establishing and implementing policies and procedures based on applicable laws and regulations. It may be helpful for supervised institutions to consider various factors, such as the account holder’s explanation of the purpose of the transaction, the requirements to provide disclosures, and the prohibitions against unfair, deceptive, or abusive acts or practices. Supervised institutions may also consider procedures for older adult account holders and their designated representatives to establish the legitimacy of a potentially suspicious transaction.
Section 4. Using Trusted Contacts
Supervised institutions may establish policies and procedures that enable account holders to designate one or more trusted contacts that employees can contact when elder financial exploitation is suspected.15 For example, an account holder might identify one or more family members, attorneys, accountants, or other trusted individuals and authorize the supervised institution to contact them if the supervised institution cannot reach the account holder or suspects that the account holder may be at risk of financial exploitation.16 Unless separately authorized by the account holder, a third-party trusted contact typically would not have authority to view account information or execute transactions.
If a supervised institution establishes a trusted contact designation process for account holders, it may be beneficial to develop clear and effective procedures for when and how to disclose to the account holder and trusted contact that one or more transactions have indicated that elder financial exploitation may be occurring.17 Any disclosures to account holders or trusted contacts must comply with applicable privacy laws and legal prohibitions, including the confidential nature of SARs.18
Section 5. Filing SARs Involving Suspected Elder Financial Exploitation
In certain circumstances, financial institutions are required under FinCEN’s, the NCUA’s, and the federal banking agencies’ laws and regulations to file SARs related to suspicious activity and suspected violations of law or regulation, which may include fraud and elder financial exploitation.19 Additionally, supervised institutions can voluntarily file SARs for suspicious activities related to elder financial exploitation that do not meet the requirements for mandatory filing, such as those involving dollar amounts lower than the regulatory threshold.20
Supervised institutions can consider how to detect and identify possible red flag indicators of suspected elder financial exploitation, such as unusual behavior of an older adult or their caregiver or an unexpected, large wire transfer out of an account from which the account holder has no history of similar activity. FinCEN’s 2022 Advisory on Elder Financial Exploitation provides examples of financial and behavioral red flags.21 Supervised institutions can include any observed red flags of financial exploitation in the narrative section of the SAR to describe the reasons why the activity is suspicious.22
FinCEN’s 2022 Advisory also requests that financial institutions mark the elder financial exploitation checkbox (SAR Field 38(d)) and include “EFE FIN-2022-A002” in SAR Field 2 (Filing Institution Note to FinCEN) and in the narrative to indicate when elder financial exploitation is suspected.23 This approach provides potentially useful information to law enforcement and supports accurate elder financial exploitation SAR data analysis and trend tracking.24
Supervised institutions are reminded of the confidential nature of SARs and the prohibition on disclosing a SAR and any information that would reveal the existence of a SAR, except in authorized circumstances.25 No financial institution and no current or former director, officer, employee, or agent of a financial institution that reports a suspicious transaction, may notify any person involved in the transaction that the transaction has been reported or otherwise reveal any information that would reveal that the transaction has been reported.26
Section 6. Reporting to Law Enforcement, Adult Protective Services (APS), and/or Other Entities, as Appropriate
Timely reporting of elder financial exploitation increases the likelihood of successful recovery of funds. In 2013, the CFPB, the Commodity Futures Trading Commission (CFTC), FDIC, FRB, Federal Trade Commission (FTC), NCUA, OCC, and Securities and Exchange Commission (SEC) issued joint guidance to confirm that the privacy provisions of the Gramm-Leach-Bliley Act generally do not prevent financial institutions from reporting elder financial exploitation to appropriate local, state, or federal agencies.27
Some state laws require certain supervised institutions to report suspected elder financial exploitation to APS, local law enforcement, and/or regulatory authorities.28 In states without mandatory reporting, there may be avenues for supervised institutions to voluntarily report suspected elder financial exploitation to relevant state or local authorities. Voluntarily notifying law enforcement directly of suspected elder financial exploitation and the underlying facts may expedite and assist law enforcement investigation and prosecution.29
In addition to filing various reports, supervised institutions can consider establishing procedures for referring individuals who may be victims of elder financial exploitation to the U.S. Department of Justice (DOJ)’s National Elder Fraud Hotline (833.372.8311) for assistance with reporting to the appropriate government agencies.30 Supervised institutions may also consider informing older adults about the options for reporting elder financial exploitation to local law enforcement, FTC, the FBI’s Internet Crime Complaint Center (IC3), the U.S. Postal Inspection Service (USPIS), the Social Security Administration (SSA), or other federal, state, or local agencies.31
Some agencies or programs may be able to help victims recover stolen funds. For example, the IC3 Recovery Asset Team is a domestic program designed to “streamline communication between financial institutions and assist FBI field offices with the freezing of funds for those who made transfers to fraudulent accounts under false pretenses.”32 Another example is FinCEN’s international Rapid Response Program that “helps victims and their financial institutions recover funds stolen as the result of certain cyber-enabled financial crime schemes, including business e-mail compromise.”33
Section 7. Providing Financial Records to Appropriate Authorities
In addition to the reporting procedures discussed above, in some instances and consistent with applicable law, supervised institutions may expedite documentation requests for APS, law enforcement, or other investigatory agencies for active elder financial exploitation cases.34
For information on providing supporting documentation for financial records that are associated with a SAR filing, please refer to FinCEN’s FAQs.35 “Supporting documentation” refers to all documents or records that assisted a supervised institution in making the determination that certain activity required a SAR filing.36
Section 8. Engaging with Elder Fraud Prevention and Response Networks
Supervised institutions may also help protect older adults from financial exploitation by engaging with elder fraud prevention and response networks that include professionals from various agencies and organizations.37 These networks are often cross-disciplinary, collaborative efforts to protect older adults from financial exploitation.
These networks can help improve coordination among supervised institutions, law enforcement, APS, local aging service providers, and other key partners.38 Networks can also help supervised institutions engage in professional cross-training, multidisciplinary case review and coordination, and community education efforts related to elder financial exploitation.
Section 9. Consumer Outreach and Awareness
When consumers are informed about specific types of scams and understand perpetrators’ tactics, they are more likely to recognize a scam and are less likely to engage with a perpetrator or lose money.39 Supervised institutions can support their account holders by providing timely information about trending scams and ways to avoid them.40
Many federal, state, and local government agencies, as well as nonprofit organizations, trade associations, and other groups, provide free educational resources for consumers and caregivers about preventing elder financial exploitation. Supervised institutions are encouraged to share free resources provided by government agencies with their account holders or as part of community outreach and awareness efforts. See Appendix A below for examples of these resources.
Appendix A: Elder Financial Exploitation Resources from Government Agencies
Reports, Research, and Recommendations
- CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Recovering from Elder Financial Exploitation: A framework for policy and research (Opens new window) (2022)
- CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Recommendations for Financial Institutions on Implementing Trusted Contacts (Opens new window) (2021)
- CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Suspicious Activity Reports on Elder Financial Exploitation: Issues & Trends (Opens new window) (2019)
- CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Reporting of Suspected Elder Financial Exploitation by Financial Institutions (Opens new window) (2019) and This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Recommendations and Report for Financial Institutions on Preventing and Responding to Elder Financial Exploitation (Opens new window) (2016)
- DOJ, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Annual Report to Congress on Department of Justice Activities to Combat Elder Fraud and Abuse (Opens new window) (2023)
- Elder Justice Coordinating Council, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Report to Congress (Opens new window) (2018) – includes examples of elder fraud prevention work by ACL, CFPB, Centers for Medicare & Medicaid Services (CMS), Corporation for National and Community Service (CNCS), DOJ, FTC, SEC, SSA, Treasury, U.S. Department of Health & Human Services (HHS), U.S. Department of Veterans Affairs (VA), and USPIS
- FBI, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. How We Can Help You: Elder Fraud (Opens new window)
- Federal Reserve Bank of Chicago, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Preventing Elder Financial Exploitation: Research, Policies, and Strategies (Opens new window) (2024)
- Federal Reserve Bank of Philadelphia, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Combining Forces to Combat Elder Financial Victimization: How Consumers Can Avoid the Financial Pitfalls of Cognitive Aging and What They Should Be Asking Their Financial Institutions (Opens new window) (2018)
- FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FinCEN Issues Analysis on Elder Financial Exploitation (Opens new window) (2024) – includes list of common scams in Appendix A
- FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Advisory on Elder Financial Exploitation (Opens new window) (2022)
- FRB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Combating Elder Financial Abuse (consumercomplianceoutlook.org) (Opens new window) (2017)
- FRB, CFTC, CFPB, FDIC, FTC, NCUA, OCC, and SEC: This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Interagency Guidance on Privacy Laws and Reporting Financial Abuse of Older Adults (Opens new window) (2013)
- FTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Protecting Older Consumers 2022-2023, A Report of the Federal Trade Commission to Congress (Opens new window) (2023)
- FTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Financial Institution Transaction Holds (Opens new window) (2024)
- OCC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Comptroller’s Handbook: Retail Nondeposit Investment Products (Opens new window) (2024)
- NCUA, Reporting Elder Abuse or Financial Exploitation: Letter to Credit Unions 13-CU-08 (2013)
- NCUA, How Credit Unions Can Help Fight Elder Financial Exploitation (Opens new window)
- NCUA, Webinar on Protecting Older Americans (2022)
- SEC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Elder Financial Exploitation: Why It is a Concern, What Regulators are Doing About it, and Looking Ahead (Opens new window) (2018)
- Treasury, CFPB, and FinCEN: This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Memorandum on Financial Institution and Law Enforcement Efforts to Combat Elder Financial Exploitation (Opens new window) (2017)
- Treasury, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. National Money Laundering Risk Assessment (Opens new window) , Elder Financial Exploitation (2024)
Federal Resources that Supervised Institutions May Use with Consumers
- CFPB and NCUA, Managing Someone Else’s Money – Power of Attorney (Opens new window)
- CFPB and NCUA, Managing Someone Else’s Money – Court-appointed Guardians (Opens new window)
- CFPB and NCUA, Managing Someone Else’s Money – Trustees (Opens new window)
- CFPB and NCUA, Managing Someone Else’s Money – Representative Payees and VA Fiduciaries (Opens new window)
- CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Elder Abuse Resources (Opens new window)
- CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Elder Fraud Prevention Network Development Guide (Opens new window)
- CFTC, CFPB, FDIC, FinCEN, FTC, U.S. Immigrations and Customs Enforcement (ICE): Homeland Security Investigation (HSI), USPIS, and USAGov, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Dating or Defrauding? Protect Yourself Against Romance Scams With Help From the Government (Opens new window)
- FDIC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Consumer News: Fraud Against the Elderly (Opens new window) (2023)
- FDIC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Avoiding Scams and Scammers (Opens new window) (2021), This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Beware, It’s a Scam! (Opens new window) (2020)
- FDIC and CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Money Smart for Older Adults (Opens new window)
- FDIC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FDIC and CFPB Release Enhanced Version of Money Smart for Older Adults (Opens new window) (2021)
- FTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Pass it On (Opens new window)
- FTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Order Publications (Opens new window)
- NCUA, Consumer Assistance Center on Preventing Elder Financial Abuse (Opens new window)
- NCUA, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Consumer Tips: Protect Your Money With a Trusted Contact (Opens new window) (video)
- NCUA, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Helping Seniors Protect Their Money (Opens new window) (video)
- NCUA, Fraud Prevention Center (Opens new window)
- NCUA, Avoid Fraud and Scams When Using Person-to-Person (P2P) Payment Apps (Opens new window)
- SEC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Older Investors (Opens new window)
State Resources that Supervised Institutions May Use
- California Department of Financial Protection and Innovation, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Preventing and Reporting Elder Financial Abuse (Opens new window)
- District of Columbia Department of Insurance, Securities and Banking, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Financial Empowerment Resources for DC Seniors (Opens new window)
- Idaho Department of Finance, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Elder Financial Topics (Opens new window)
- Kentucky Department of Financial Institutions, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Senior Scam Jams (Opens new window)
- Louisiana Office of Financial Institutions, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. State Financial Regulators Roundtable Guide to Financial Services Issues for Senior Citizens (Opens new window)
- Maine Council for Elder Abuse Prevention, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Committed to Ending Elder Abuse in Maine (Opens new window)
- Massachusetts Executive Office of Elder Affairs, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Protecting Older Adults from Abuse (Opens new window)
- Minnesota Commerce Department: Money and Banking, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Senior Fraud (Opens new window)
- New Hampshire Banking Department, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Avoiding Scams and Fraud (Opens new window)
- New Mexico Regulation & Licensing Department, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Senior Citizens (Opens new window)
- New York State Department of Financial Services, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. What is Elder Financial Exploitation? (Opens new window)
- North Carolina Secretary of State, Attorney General, and Commissioner of Insurance, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Scam Jam Video (Opens new window)
- Washington State Department of Financial Institutions, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. $10,000,000,000 Lost to Fraud in 2023. Identify. Prevent. Report. (Opens new window)
Footnotes
1 While this statement relates to elder financial exploitation, many of the risk management practices and principles discussed herein may be helpful in preventing fraud more broadly.
2 The Older Americans Act, as amended by the Elder Justice Act of 2009, defines elder financial exploitation as “the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an elder for monetary or personal benefit, profit, or gain, or that results in depriving an elder of rightful access to, or use of, benefits, resources, belongings, or assets.” 42 U.S.C. § 1397j(8). FinCEN differentiates between two types of elder financial exploitation, stating, “Elder theft involves the theft of an older adult’s assets, funds, or income by a trusted person. Elder scams involve the transfer of money to a stranger or imposter for a promised benefit or good that the older adult did not receive.” FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Financial Trend Analysis: Elder Financial Exploitation: Threat Pattern & Trend Information, June 2022 to June 2023 (Opens new window) 3 (April 2024) [hereinafter FinCEN Trend Analysis].
3 Jilenne Gunther, AARP, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. The Scope of Elder Financial Exploitation: What It Costs Victims (Opens new window) (June 2023).
4 U.S. Dep’t of Treasury, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. 2024 National Money Laundering Risk Assessment (Opens new window) (Feb. 2024).
5 This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FinCEN Trend Analysis (Opens new window) , supra note 2, at 1. As noted in the Analysis, this figure may be overstated because it could include attempted or unpaid transactions, duplicates, both inbound and outbound transactions, transfers between accounts, errors as submitted by filers, as well as reports of continuing suspicious activity or amendments to earlier reporting that would include amounts from earlier reports.
6 A 2019 CFPB study of SARs found that filing institutions reported institutional losses in 9 percent of those filings. CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends (Opens new window) 15 (Feb. 2019) [hereinafter CFPB SARs 2019].
7 Supervised institutions are expected to operate in a safe and sound manner and in compliance with applicable laws and regulations, including those related to safety and soundness, consumer protection, and anti-money laundering/countering the financing of terrorism (AML/CFT).
8 Examples include the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, Section 5 of the FTC Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Equal Credit Opportunity Act (ECOA), and the Bank Secrecy Act (BSA).
9 15 U.S.C. §§ 1691(a)(1), (b)(2)-(4). ECOA generally prohibits discrimination in any aspect of a credit transaction on the basis of age, and its implementing regulation, Regulation B offers special protections to those 62 or older. 12 C.F.R. Part 1002.2(o), 1002.6(b)(2); 12 C.F.R. Part 1002, Supp. I, Part 1002.6(b)(2)-1.
10 CFPB’s 2016 This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Recommendations and report for financial institutions on preventing and responding to elder financial exploitation (Opens new window) identified promising practices to assist banks and credit unions with their voluntary efforts to prevent elder financial abuse, including general principles for training staff.
11 FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FIN-2022-A002: Advisory on Elder Financial Exploitation (Opens new window) (June 15, 2022) [hereinafter FinCEN 2022 Advisory].
12 12 U.S.C. § 3423(a)(2)(B), commonly referred to as the Senior Safe Act.
13 Bank regulators have taken enforcement actions related to restrictions on account access. See FRB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Order to Cease and Desist 24-005-B-SM, In the Matter of Green Dot Bank (Opens new window) (July 19, 2024); CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Consent Order 2023-CFPB-0019, In the Matter of U.S. Bank, N.A. (Opens new window) (Dec. 19, 2023); OCC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Consent Order No. AA-ENF-2023-64, In the Matter of U.S. Bank, N.A. (Opens new window) (Dec. 19, 2023).
14 FTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Financial Institution Transaction Holds (Opens new window) (Oct. 2024). See also CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Reporting of suspected elder financial exploitation by financial institutions (Opens new window) (July 2019).
15 CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Financial institutions can help prevent elder financial exploitation with alerts to trusted contacts (Opens new window) (Nov. 2021); see also CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Choosing a trusted contact person can help you protect your money (Opens new window) (Nov. 2021).
16 See FINRA, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Investment Accounts: Brokerage Accounts: Trusted Contacts (Opens new window) . The North American Securities Administrators Association (NASAA), the Securities and Exchange Commission (SEC), and FINRA created a training presentation about this topic. See FINRA, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Is your financial firm asking you for a trusted contact? (Opens new window)
17 Trusted contacts have been widely implemented by investment firms and broker-dealers, as required by FINRA Rule 4512. See FINRA, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Trusted Contact Persons: New for 2022: Regulatory Obligations and Related Considerations (Opens new window) (2022); FINRA, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Frequently Asked Questions Regarding FINRA Rules Relating to Financial Exploitation of Senior Investors (Opens new window) .
18 See, e.g., 31 U.S.C. 5318(g)(2); 31 CFR 1020.320(e).
19 See 12 C.F.R. Part 353; 12 CFR § 21.11; 12 CFR 163.180(d); and 12 CFR 748.1(d), issued under the authority of the BSA and 12 U.S.C. 1818, 12 U.S.C. 1819, and 12 USC 1786(q). The BSA defines the term “financial institution” for this purpose. 31 USC § 5312(a)(2). FinCEN maintains these reports and records in its BSA database and makes them available to authorized users from law enforcement, intelligence, and regulatory agencies. FinCEN provides such access consistent with the BSA, FinCEN’s implementing regulations, and Memoranda of Understanding (MOU) that agencies enter into with FinCEN before accessing BSA data, which set out safeguards for the access to and use of BSA reports. See 31 U.S.C. § 5318(g); 31 CFR §§ 1020.320, 1021.320, 1022.320, 1023.320, 1024.320, 1025.320, 1026.320, 1029.320, and 1030.320. “A financial institution is required to file a SAR if it knows, suspects, or has reason to suspect a transaction conducted or attempted by, at, or through the financial institution involves funds derived from illegal activity, or attempts to disguise funds derived from illegal activity; is designed to evade regulations promulgated under the BSA; lacks a business or apparent lawful purpose; or involves the use of the financial institution to facilitate criminal activity, including EFE.” FinCEN 2022 Advisory, supra note 11, at 11.
20 “All statutorily defined financial institutions may voluntarily report suspicious transactions under the existing suspicious activity reporting safe harbor.” Id. (citing 31 U.S.C. § 5318(g)(3)).
21 FinCEN’s 2022 Advisory requests that financial institutions include all available information relating to the account and locations involved in the reported activity, identifying information and descriptions of any legal entities or arrangements involved and associated beneficial owners, and any information about related persons or entities involved in the activity. FinCEN 2022 Advisory, supra note 11.
22 See id.; see also FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FIN-2011-A003: Advisory to Financial Institutions on Filing Suspicious Activity Reports Regarding Elder Financial Exploitation (Opens new window) (Feb. 22, 2011).
23 See id.
24 See id.; This is an external link to a website belonging to another federal agency, private organization, or commercial entity. CFPB SARs Data Spotlight (Opens new window) , supra note 21; This is an external link to a website belonging to another federal agency, private organization, or commercial entity. CFPB SARs 2019 (Opens new window) , supra note 6.
25 31 U.S.C. 5318(g)
26 31 U.S.C. 5318(g)(2)(A)(i); 31 C.F.R. § 1020.320(e)(1)(ii); 12 CFR § 21.11(k); 12 CFR 163.180(d)(12).
27 FRB, CFTC, CFPB, FDIC, FTC, NCUA, OCC, & SEC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Interagency guidance on privacy laws and reporting financial abuse of older adults (Opens new window) (Sep. 24, 2013).
28 Different states’ APS agencies may have varying organizational structures for responding to suspected abuse of different age groups within the adult population. National Adult Protective Services Association, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Get help: Help in your area (Opens new window) .
29 Supervised institutions are reminded that reporting suspicious activity to law enforcement does not relieve the financial institution of the requirement to file a SAR with FinCEN. See 31 CFR § 1020.320(b)(3); 12 CFR § 21.11(d); 12 CFR 748.1(d)(2)(i);12 CFR 163.180(d)(5).
30 FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FinCEN Reminds Financial Institutions to Remain Vigilant to Elder Financial Exploitation (Opens new window) (June 14, 2024).
31 FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Fact Sheet on the Rapid Response Program (Opens new window) (Feb. 11, 2022); FTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Report to help fight fraud! (Opens new window) ; FBI, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Internet Crime Complaint Center (IC3) (Opens new window) ; USPIS, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Our investigation starts with your report (Opens new window) ; SSA Office of the Inspector General, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Report Fraud (Opens new window) ; CFTC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Submit a Tip (Opens new window) ; SEC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Report Suspected Securities Fraud or Wrongdoing (Opens new window) .
32 Internet Crime Complaint Center, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Federal Bureau of Investigation Internet Crime Report 2023 (Opens new window) 9 (2023).
33 See FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FinCEN’s Rapid Response Program Aids in Recovering More Than $1.1B Since Inception (Opens new window) (Feb. 14, 2022); FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FIN-2022-FCT1: Fact Sheet on the Rapid Response Program (RRP) (Opens new window) (Feb. 11, 2022).
34 CFPB, Treasury, and FinCEN issued a joint memorandum to encourage coordination among financial institutions, law enforcement, and APS agencies to protect older adults from elder financial exploitation. Treasury, FinCEN, & CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Memorandum on financial institution and law enforcement efforts to combat elder financial exploitation (Opens new window) (Aug. 30, 2017).
35 Regarding SAR filings, supervised institutions should make all supporting documentation available to FinCEN or any Federal, State, or local law enforcement agency, or any Federal regulatory authority that examines the bank for compliance with the BSA or any State regulatory authority administering a State law that requires the bank to comply with the BSA or otherwise authorizes the State authority to ensure that the institution complies with the BSA, upon request. 31 C.F.R. § 1020.320(d); see also FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Suspicious Activity Report Supporting Documentation: FIN-2007-G003 (Opens new window) (June 13, 2007) [hereinafter FinCEN SAR supporting documentation]; FinCEN, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Frequently Asked Questions Regarding the FinCEN Suspicious Activity Report (SAR) (Opens new window) .
36 This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FinCEN SAR supporting documentation (Opens new window) , supra note 36, at 2.
37 CFPB, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Elder Fraud Prevention Network Development Guide (Opens new window) .
38 Supervised institutions can consult DOJ’s Elder Justice Network Locator Map to find and join existing networks or use the Administration for Community Living’s (ACL) Eldercare Locator tool to contact a local APS agency or Area Agency on Aging for help identifying a network. Additionally, supervised institutions can use CFPB’s Network Development Guide to help their communities form a new network or grow an existing network. DOJ, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Elder Justice Network Locator Map (Opens new window) ; ACL, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Eldercare Locator (Opens new window) .
39 FINRA Foundation, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Exposed to Scams: Can challenging consumers’ beliefs protect them from fraud? (Opens new window) 26 (Sept. 2021).
40 The agencies offer publications which regularly spotlight fraud issues and educate older consumers about how to prevent fraud. See, e.g., OCC, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Financial Literacy Update: Third Quarter 2024 (Opens new window) . See also Acting Comptroller of the Currency Michael J. Hsu, This is an external link to a website belonging to another federal agency, private organization, or commercial entity. Remarks for the Financial Literacy and Education Commission’s Public Meeting: Banks’ Role in Addressing Fraud Against Consumers (Opens new window) (July 10, 2024).