NEWS, EVENTS, PUBLICATIONS & EMERGING ISSUES

SW&M EMERGING ISSUE
October 9, 2009

ELDER ABUSE REFRESHER

As we have previously written in our Client Pool, and as a reminder, we wrote in September 2006 informing clients about the California Financial Elder Abuse Reporting Act (SB 1018). With hard economic times, many of our credit union clients are experiencing an increase in fraud and financial abuse. For that reason, we would remind credit unions in California about their responsibilities under the Financial Elder Abuse Reporting Act (the “Act”); reminding front-line staff and compliance personnel of this law could result in your credit union avoiding significant headaches.

The Act establishes procedures for reporting, investigation, and prosecution of elder abuse. Under it, credit union officers and employees must report known or suspected incidents of elder or dependent adult financial abuse or risk personal liability, including hefty fines. Suspected abuse must be reported to Adult Protection Services (”APS”) immediately by telephone, and also in writing within two (2) working days. In all, the Act results in a “when in doubt, report” legislative scheme, analogous to that for Suspicious Activity Reports.

Effective training to identify elder financial abuse, and effective policies and procedures for investigation of suspicious circumstances, should be in place at any financial institution in California. If your credit union has questions about elder financial abuse reporting, or corresponding policies and procedures, SW&M would be pleased to assist you.

Click here for more information on our Client Pool.

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