Federal financial regulatory bodies, alongside the FinCEN and state regulators, have issued a crucial statement aimed at bolstering the defences against elder financial exploitation.
This guidance is critical as FinCEN’s analysis of Bank Secrecy Act reports from the year ending in June 2023 reveals that a staggering $27bn was reported in suspicious activities linked to financial abuses against older adults. Such exploitation not only drains the victims’ life savings but also inflicts significant emotional and financial distress.
The issued statement highlights a variety of risk management strategies and practices that banks, credit unions, and other supervised institutions can adopt to combat this grave issue. These measures include developing robust governance and oversight to shield account holders and the institutions themselves, and training for employees on how to recognise and address signs of elder financial exploitation effectively.
Moreover, the guidance suggests practical steps such as implementing transaction holds and disbursement delays when necessary, in accordance with the law, to prevent fraudulent activities. It also recommends the establishment of a trusted contact designation process for account holders, which can be a critical step in safeguarding the financial interests of the elderly.
In their commitment to combatting this form of exploitation, these institutions are also urged to file suspicious activity reports to FinCEN promptly, report any suspicions to law enforcement and Adult Protective Services, and provide financial records to the relevant authorities as permitted by law. Additionally, increasing engagement with elder fraud prevention networks and boosting consumer outreach are advocated to raise awareness about the potential financial dangers facing the elderly.
This concerted effort underscores the critical role that financial institutions play in not only protecting their customers but also in fostering a safer financial environment for the elderly population.
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