RED FLAGS
customer behaving suspiciously, e.g., reluctant to give information, nervous or impatient
What is a Red Flag?
Remind your customer that we hear stories in the media almost every day about financial crimes
What is a way to educate customer about financial crimes?
There are many different types of fraud scams but outlined below are some of the most common scams and some of the red flags to help you identify the fraud.
What are common types of fraud?
Compliance with BSA/AML/OFAC regulations are reviewed
and monitored by the Enterprise Risk Management Committee on at least a quarterly basis. Board
of Directors oversight is provided by the Risk Management Committee
What is BSA/AML/OFAC?
First ask yourself: Does it appear the person is in physical danger or does the victim express they are in immediate danger? If so, call local law enforcement. Notify the Branch Manager or supervisor. Complete the Fraud Report and provide all the relevant information.
When should you report fraud?
customer cashing a check or performing a withdrawal outside of their market
What is check cashing fraud?
bank regulators have taken steps to curb those financial crimes by requiring all U.S. banks to collect more information about how customers use their money, their sources of income and other funds, and their anticipated account activity.
What is Enhanced Due Diligence?
A genuine check on which a criminal has changed the amount, the payee’s name, or other critical information
What is an altered check ?
Office of Foreign Assets Control (OFAC)
Bank Secrecy Act (BSA)
Anti-Money Laundering (AML)
What do these acronyms stand for: OFAC, BSA, AML
Any bank teammate who suspects dishonest or fraudulent activity has occurred should immediately notify the Fraud Investigations Unit by submitting a Fraud Report
Does the customer have to appear to be in danger to report fraud?
Some customers will ask, “Why me? Why are you asking me all these questions?” You can explain that the types, size or frequency of financial transactions put some consumers at higher risk than others. Regulators require more due diligence from banks for these high-risk customers.
What is a talking point for Enhanced Due Diligence?
. Explain that collecting this information better protects the customers you are collecting it from. a. If we know that regular substantial deposits are expected, for example, then we are better able to rule out suspicious activity. b. If we are familiar with our customer’s transaction patterns, we are able to better detect suspicious activity when a criminal tries to use our customer’s ID or account in the fraud.
What are best practices to protect customer from financial crimes?
Help your customer understand that this is a program that Cadence Bank is implementing because it is required to do so by Federal law; it is not a program that is unique to Cadence.
What is Federal law and not unique to Cadence Bank?