Page 6 - August 22, 2024 Bulletin

aRTiCLeS

USDA Discrimination Payments reporting rule, which applies to approximately 33 million small
are Targets for Check Fraud businesses, and the CDD rule, which applies to banks and other FIs.
The two-page notice explains the legal requirements for reporting
The Biden administration recently began issuing payments to eligible rule information collection as well as the compliance deadlines that
applicants under the Inflation Reduction Act’s Discrimination businesses and other entities must meet. It also contains two charts
Financial Assistance Program. The payments – which are intended breaking down what types of BOI entities must report to FinCEN
to provide financial assistance to farmers, ranchers and forest versus the information that financial institutions are required to
landowners – are for discrimination that occurred under the USDA’s collect from their customers.
Farm Service Agency Direct Farm Loan Program through 2021.
Due to the increase in check fraud currently experienced by banks, Read more: https://www.fincen.gov/sites/default/files/shared/BOI-
depository institutions need to be aware of the program and how to Notice-to-Customers-508FINAL.pdf
go about validating the checks.

Treasury checks are among criminals’ favorite targets because FinCEN Releases Commercial
generally banks must provide the money before they can learn if the on Beneficial Ownership
check is not valid or stolen, and it has been reported that they are Information Reporting
actively targeting the USDA checks. Additionally, due to the high
levels of fraud with Treasury checks, it is recommended that banks The Financial Crimes Enforcement Network released a new video
only cash Treasury checks for existing customers whose accounts are and radio commercial to educate business owners on the new
at least one year old. beneficial ownership information reporting requirements. It is part
of a larger public outreach campaign by the agency, which includes a
More than 43,000 individuals will receive payments. Congress dedicated website and videos on BOI reporting.
allocated $2.2 billion, and recipients include more than 23,000
people who have or had a farming or ranching operation, who Read more: https://www.fincen.gov/boi
are receiving between $10,000 and $500,000 of assistance, with
an average of nearly $82,000. Recipients also include over 20,000 ABA Unveils Updated Fraud
individuals who planned to have a farming or ranching operation, Contact Directory
but reported they were unable to do so because they couldn’t get
a USDA loan. They are receiving between $3,500 and $6,000 of Directory, an expanded, online resource that helps banks connect
assistance, with an average of $5,000. with other institutions to resolve warranty breach claims for checks as
well as claims for unauthorized and/or fraudulent transfers for wires,
Paper checks were issued beginning Aug. 2. There is reference code
in the memo line of the check, which can be used to identify a check ACH, real-time payments or FedNow.
as part of these payments. All aspects of the checks except for the The directory of fraud contacts is searchable by bank name, city,
name can be verified by the Treasury Department. For verification state or FDIC number. Access to the database is only available to
of the name, a financial institution can call (800) 721-0970. By banks that provide their fraud contacts. ABA member and non-
providing the information on the check, the DFAP call center will member banks are invited to participate. The more institutions that
confirm the validity of the payment. get involved, the more helpful the directory will be for the industry,
according to ABA.
Read more: https://www.usda.gov/media/press-releases/2024/07/31/
biden-harris-administration-issues-financial-assistance-more-43000 Read more: https://www.aba.com/banking-topics/risk-management/
fraud/check-fraud
View Treasury Check Validation: https://tcvs.fiscal.treasury.gov/
FinCEN Issues Guidance to Help IRS Finalizes Rule on Proposed

Bank Customers Understand Required Minimum Distributions
New BOI Reporting Rules The IRS finalized its proposed rule on required minimum
distributions, including requirements for distributions from a
The Financial Crimes Enforcement Network has issued a notice to qualified retirement plan such as an IRA – during the life of the
financial institution customers about the new beneficial ownership retirement employee and after the death of the employee.
information reporting rule requirements, explaining why certain
customers must report directly to the agency in addition to giving Implementing the legislative requirements of SECURE and
information to their banks, which are subject to the customer due SECURE 2.0, the final rule sets a required beginning date for
diligence rule. The notice also explains differences between the distributions and identifies the period during which the employee’s
entire interest must be distributed. Among other things, the final

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