Highlights:
- FinCEN cautions financial institutions about the potential for
fraudulent transactions involving hurricane relief monies.
- Potentially fraudulent activity may include: depositing multiple
emergency assistance checks; cashing of multiple emergency assistance
checks by the same individual; depositing one or more emergency
assistance checks, when the accountholder is a retail business and the
payee/endorser is an individual other than the accountholder; and
opening a new account with an emergency assistance check, where the name
of the potential accountholder is different from that of the depositor
of the check.
- FinCEN requests the use of key terms in the narrative portion of all
Suspicious Activity Reports filed in connection with hurricane-related
benefit fraud. Examples include "Katrina," "Rita," "Wilma," "FEMA," "Red
Cross," or "hurricane."
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Security Officer
BSA Compliance Officer
Related Topics:
Hurricane Katrina Examiner Guidance: Interagency Supervisory Guidance
for Institutions Affected by Hurricane Katrina (see FIL-12-2006, dated
February 3, 2006)
Attachment:
Financial Crimes Enforcement Network Advisory entitled, "Guidance to Financial Institutions Regarding
Hurricane-Related Benefit Fraud"
(Can be found at http://www.fincen.gov/hurricanebenefitfraud.html.)
Contact:
Examination Specialist Debra L. Stabile at SASFIL@fdic.gov or (202) 898-3673
Note:
FDIC financial institution letters (FILs) may be accessed from the
FDIC's Web site at www.fdic.gov/news/news/financial/2006/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained
through the FDIC's Public Information Center (1-877-275-3342 or
703-562-2200).
