Regulatory Alerts2017-10-31 | FinCEN Advisory FIN-2017-A007Added
Advisory to Financial Institutions Regarding Disaster-Related Fraud
Financial institutions should be aware of potential fraudulent activity related to disaster relief efforts, particularly benefits fraud, charities fraud, and cyber-related fraud, following recent hurricanes and wildfires. The Financial Crimes Enforcement Network (FinCEN) encourages institutions to use resources from the National Center for Disaster Fraud (NCDF) to identify and mitigate risks, providing specific red flags for various fraud types. Consistent with 31 CFR Chapter X, financial institutions must file a Suspicious Activity Report (SAR) for suspicious transactions and are requested, though not required, to include "Disaster-related Fraud" in the SAR narrative and field 31(z). For suspected disaster-related benefit fraud or other potentially illicit transactions, institutions should also contact their local office of the Federal Bureau of Investigation or the United States Secret Service.