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 issued a joint statement this week.
Referring to a FinCEN financial trend analysis of Bank Secrecy Act report covering the one-year period ending in June 2023, the statement disclosed that approximately $27 billion in reported suspicious activities is linked to elder financial exploitation. This issue is critical to address, as older adults are a vulnerable group, often at risk of losing their life savings and financial security.
Financial institutions such as banks and credit unions share the responsibility of combating elder financial exploitation. To effectively identify, prevent, and handle such cases, they are encouraged to implement the following risk management practices:
- Develop robust governance and oversight with policies designed to protect account holders and the institution.
- Train employees to recognize and respond to elder financial exploitation.
- Utilize transaction holds and disbursement delays when appropriate and legally permissible.
- Establish a trusted contact designation process for account holders.
- Timely file suspicious activity reports with FinCEN.
- Report suspected elder financial exploitation to law enforcement, Adult Protective Services, and other relevant organizations.
- Provide necessary financial records to relevant authorities, consistent with applicable law.
- Engage with elder fraud prevention and response networks.
- Raise awareness through consumer outreach initiatives.