BSA-AML Examiner School eBook

Internal Use Only

Elder Financial Exploitation Advisory issued on June 15, 2022 Interagency Statement on Elder Financial Exploitation on December 4,2024. https://www.fincen.gov/sites/default/files/2024 12/Interagency-Statement-on-EFE-FINAL-508C.pdf DEFINED: Illegal or improper use of older adult's funds, property, or assets.

Do you have State laws that protect against this type of fraud and abuse?

Internal Use Only

California Elder Financial Exploitation Law Cal. Welf. & Inst. Code § 15610.30: defines financial abuse of an elder. Subsection (a) provides that financial abuse of an elder occurs when a person does any of the following:(1) takes the property of an elder for a wrongful use or with intent to defraud(2) assists in taking the property of an elder for a wrongful use or with intent to defraud(3) takes or assists in taking the property of an elder by undue influence Subsection (b) provides that a person is considered to have taken for a wrongful use if they take the property and they knew or should have known that the conduct would likely to be harmful to the elder. Cal. Welf. & Inst. Code §15657.5: defines the damages that are available in the event that the defendant is liable for financial elder abuse. California Financial Institution are required to perform the following : BE Mandated Reporters o The mandated reporter must have had direct contact with the elder or dependent adult o Or he or she must have reviewed or approved the elder or dependent adult’s financial document, records, or transaction. o And the contact or review or approval must occur “in connection with providing financial services with respect to an elder or dependent adult.” Have a Duty to Report o The Act requires mandated reporters to notify either the local adult protective services agency or the local law-enforcement agency by telephone and in writing of suspected incidents of financial abuse. Suspected incidents must be reported by telephone immediately or as soon as practicably possible. And written reports must be sent to local authorities within two working days Exceptions to the Duty to Report o An allegation by an elder or dependent adult of financial abuse will not trigger the duty to report if two conditions are met: • One, the mandated reporter is not aware of any corroborating or independent evidence of financial abuse that supports the allegation. Mandated reporters have no duty to investigate an accusation.) • And two, the mandated reporter reasonably believes that financial abuse of an elder or dependent adult did not occur. State laws and procedures will vary by State. Slides are based on California law.