Thursday, March 31, 2016

Recommendations for financial institutions on preventing and responding to elder financial exploitation

The Consumer Financial Protection Bureau has issued recommendations for banks and credit unions on how they can help protect senior citizens from financial abuse.

These include:

• Develop, implement and maintain internal protocols and procedures for protecting account holders from financial exploitation (FE);
• Train management and staff to prevent, detect and respond to FE;
• Detect FE by harnessing technology such as predictive analytics to detect possible FE;
• Report all cases of suspected exploitation to relevant federal, state and local authorities- including APS. : understand that the Gramm-Leach-Bliley Act is not a barrier to reporting suspected FE; understand the role of APS; expedite response to documentation requests of APS, law enforcement and other government entities investigating reports of FE;
• Protect older account holders: including offering “convenience accounts” in place of joint accounts so trusted family/friends can write bills on behalf of senior but not legally use money for their own purposes;
• Collaborate with other stakeholders, including APS and law enforcement: help educate older account olders, caregivers and the public, participate in local multidisciplinary initiatives

For more information on how to implement the recommendations, click here.