Elder Financial Exploitation (EFE) involves the illegal or improper use of an older adult’s funds, property, or assets. It is often perpetrated either through theft or scams. According to the U.S. Department of Justice, elder abuse, which includes EFE, among other forms of abuse, affects at least 10 percent of older adults each year in the United States. Even though EFE is the most common form of elder abuse, the majority of incidents go unidentified and unreported, as victims may choose not to come forward out of fear, embarrassment, or lack of resources. To help combat EFE, banks should refer to the FinCEN Advisory FIN-2022-A002, highlighting new EFE typologies and red flags since FinCEN issued its first advisory specific to EFE in 2011.

A financial institution is required to file a SAR if it knows, suspects, or has reason to suspect a transaction conducted or attempted by, at, or through the financial institution involves funds derived from illegal activity or attempts to disguise funds derived from unlawful activity; is designed to evade regulations promulgated under the BSA; lacks a business or apparent lawful purpose; or involves the use of the financial institution to facilitate criminal activity, including EFE.

So, we know we are supposed to share this information with FinCEN through a SAR. Whom else can the Bank contact?

In addition to filing a SAR, FinCEN recommends that financial institutions refer their older customers who may be victims of EFE to the Department of Justice’s National Elder Fraud Hotline at 833-FRAUD-11 or 833-372-8311.

For further guidance, a bank will want to refer to state law. For Nebraska Banks, a financial institution may notify any third party reasonably associated with a vulnerable adult or senior adult if the financial institution reasonably believes that the financial exploitation of a vulnerable adult or senior adult may have occurred, may have been attempted, is occurring, or is being attempted.

A third party reasonably associated with a vulnerable adult or senior adult includes, but is not limited to, the following:

Additionally, nothing shall prevent a financial institution from notifying the Department of Health and Human Services or a law enforcement agency if the financial institution reasonably believes that the financial exploitation of a vulnerable adult or senior adult may have occurred, may have been attempted, is occurring, or is being attempted.