Regulatory Alerts2010-06-17 | FinCEN Advisory – FIN-2010-A006Added
Updated Advisory to Financial Institutions on Filing Suspicious Activity Reports Regarding Loan Modification/Foreclosure Rescue Scams
This advisory updates guidance for financial institutions on filing Suspicious Activity Reports (SARs) regarding loan modification and foreclosure rescue scams. It provides new red flags and examples of fraudulent schemes, including advance fee arrangements and the use of straw borrowers, based on an analysis of over 3,500 SARs. The document requires filers to use the specific term "foreclosure rescue scam" in SAR narratives to facilitate law enforcement searches and requests that all available suspect information be included in the Suspect/Subject Information Section. It also instructs institutions to include homeowner details in the narrative when the homeowner is a victim rather than a suspect.