Regulatory Alerts2023-11-22 | FIN-2023-Alert007Added
FinCEN Alert on COVID-19 Employee Retention Credit Fraud (FIN-2023-Alert007)
FinCEN requests that financial institutions reference alert FIN-2023-Alert007 in Suspicious Activity Report field 2 and field 34(z) when reporting fraud schemes related to the COVID-19 Employee Retention Credit. The alert outlines typologies involving fabricated entities, ineligible businesses, and third-party promoters, noting that fraudulent claims have resulted in over $2.8 billion in potentially fraudulent activity across 323 investigations. Financial institutions are urged to identify red flags such as deposits into accounts with limited prior transactions or the use of altered Treasury checks to detect and report suspicious activity.
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