Amy K: FinCEN News
by Amy Kleinschmit, Director of ComplianceDeadline for new forms. As a reminder, the last day to file the former “legacy” BSA forms, such as CTRs and SARS is March 31, 2013. Starting Monday, April 1, 2013, credit unions are required to e-file Suspicious Activity Reports (SARs), Currency Transaction Reports (CTRs), Registration of Money Services Business (RMSBs), and Designation of Exempt Person Reports (DOEPs) using the new forms which are available through FinCEN’s E-filing system.
The “Test” site has been updated to allow for testing of all the reports that are available right now for E-filing. That test site can be found here: http://sdtmut.fincen.treas.gov/main.html.
If your credit union has not created an account for E-filing, you should do that now at this link: http://bsaefiling.fincen.treas.gov/main.html
Tax Refund Fraud. FinCEN issued continued guidance to help financial institutions identify tax refund fraud. These “Red Flags” were developed by FinCEN in consultation with the IRS and law enforcement and can be found here: http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-A001.pdf.
Some of these “Red flags” include:
· Multiple direct deposit tax refund payments, directed to different individuals, from the United States Department of the Treasury (Treasury) or state or local revenue offices are made to a demand deposit or prepaid access account held in the name of a single accountholder.
· Suspicious or authorized account opening at a depository institution, on behalf of individuals who are not present, with the absent individuals being accorded signatory authority over the account. The subsequent deposits are comprised solely of tax refund payments. This activity often occurs with fraudulent returns for the elderly, minors, prisoners, the disabled, or recently deceased
· Individuals using bank accounts where the majority of the transactions are ACH federal tax refunds or refund anticipation loans.
· Individuals attempting to negotiate double endorsed Treasury tax refund checks with questionable identification.
· The signature/endorsement on the back of the check(s) does not match the identification of the individual conducting the transaction.
· The same signature/endorsement is used on multiple checks, with multiple names.
Proposed Changes to FBAR. FinCEN is also accepting comments on proposed changes/”updates” to Form TD 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR). The proposed updates would include standardizing this report with the other BSA electronically filed reports and add the capability for a third party preparer to file the report.
The proposed, updated form, can be found here: http://www.gpo.gov/fdsys/pkg/FR-2013-03-05/pdf/2013-04936.pdf.
The FBAR is used to report a financial interest in or signature authority over a foreign financial account. The FBAR must be received by the Department of the Treasury on or before June 30th of the year immediately following the calendar year being reported. The June 30th filing date may not be extended.
Health Care Fraud Webinar. In case you missed FinCEN’s webinar earlier this year on Health Care Fraud, it was recorded and can be accessed here: http://treas.yorkcast.com/webcast/Viewer/?peid=4b8f3616834141a9b9fa5428151f1b6b1d.
Should you have any questions or concerns on these or any other compliance topic, please do not hesitate to contact Amy Kleinschmit at akleinschmit@cuad.coop or 701.214.9721.