CFPB Updates Advisory and Recommendations for Financial Institutions on Preventing and Reporting Suspected Elder Financial Exploitation

On July 17, 2019, the CFPB published an update to its 2016 Advisory and Recommendations for Financial Institutions on Preventing and Responding to Elder Financial Exploitation (2016 Advisory and Recommendations).  In the 2016 Advisory and Recommendations, the CFPB provided six categories of recommended voluntary best practices to help financial institutions prevent elder financial abuse and intervene effectively when it occurs.  The 2019 update focuses on the category in the 2016 Advisory and Recommendations which addresses the reporting of suspected elder financial exploitation to the appropriate federal, state and local authorities.

According to the CFPB, the update “reiterates key recommendations regarding reporting from the 2016 Advisory and Recommendations because many financial institutions remain unsure of whether to report suspected financial exploitation due to privacy concerns.”  Moreover, it provides new information on reporting based on federal and state legislative changes.  Further, the update highlights findings from the Bureau’s Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends, which it published in February 2019.