FinCEN alert on fraud schemes with Employee Retention Credit

Online Fraud Charter published by UK Government
Follow up report on South Africa published by FATF

The Financial Crimes Enforcement (FinCEN) has issued an alert to financial institutions on fraud schemes related to the COVID-19 Employee Retention Credit (ERC).

The alert urges firms to remain vigilant in identifying and reporting related suspicious activity, and covers:

  • FinCEN’s Suspicious Activity Report (SAR) Filing Request;
  • Trends and Typologies of ERC-Related Financial Crimes;
  • Financial Red Flag Indicators of ERC Fraud; and
  • Reminder of Relevant BSA Obligations and Tools for U.S. Financial Institutions.

Firms should view the alert and remain aware of the fraud schemes alongside their reporting requirements.

https://www.fincen.gov/sites/default/files/shared/FinCEN_ERC_Fraud_Alert_FINAL508.pdf

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