• 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

Printable Format:
FIL-15-2006 - PDF 68k (PDF Help)

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).