Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-15-2006
February 14, 2006
Hurricane-Related Benefit Fraud
Guidance to Financial Institutions on Benefit Fraud Related to Recent Hurricanes
Summary: The FDIC is providing institutions with the attached guidance issued by the Financial Crimes Enforcement
Network (FinCEN) regarding benefit fraud related to the recent hurricanes. The Hurricane Katrina Fraud Task Force, as
part of the Department of Justice, has been vigorously prosecuting fraud cases related to the hurricanes. The Task
Force has also identified possible signs of fraudulent activity, which are included in the attached guidance to assist
financial institutions in identifying hurricane-related benefit fraud. Finally, FinCEN requests that specific words be used
in the narrative portion of all Suspicious Activity Reports filed in connection with hurricane-related benefit fraud.
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.htm
l.)
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).
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."Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-15-2006
February 14, 2006
Hurricane-Related Benefit Fraud
Guidance to Financial Institutions on Benefit Fraud Related to Recent Hurricanes
Summary: The FDIC is providing institutions with the attached guidance issued by the Financial Crimes Enforcement
Network (FinCEN) regarding benefit fraud related to the recent hurricanes. The Hurricane Katrina Fraud Task Force, as
part of the Department of Justice, has been vigorously prosecuting fraud cases related to the hurricanes. The Task
Force has also identified possible signs of fraudulent activity, which are included in the attached guidance to assist
financial institutions in identifying hurricane-related benefit fraud. Finally, FinCEN requests that specific words be used
in the narrative portion of all Suspicious Activity Reports filed in connection with hurricane-related benefit fraud.
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.htm
l.)
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).
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."Inactive