Regulatory Alerts2013-02-26 | FinCEN Advisory – FIN-2013-A001Added
Update on Tax Refund Fraud and Related Identity Theft (FinCEN Advisory – FIN-2013-A001)
The Financial Crimes Enforcement Network updates red flags for identifying tax refund fraud and related identity theft, emphasizing indicators such as multiple direct deposit refunds to single accounts, suspicious account openings for absent individuals, and irregular processing of third-party checks by businesses. Financial institutions are reminded that they may be required to file Suspicious Activity Reports when transactions involve funds derived from illegal activity or lack a lawful purpose, and must use the term “tax refund fraud” in the SAR narrative. Institutions are also advised to consider contacting their local IRS Criminal Investigation Field Office to alert them of filed SARs due to the time-sensitive nature of these transactions.