Financial Institutions Gearing up for Red Flag Rules Compliance

Lora Bentley

Let's see... Basel II, anti-money laundering requirements, Sarbanes-Oxley, Graham-Leach-Bliley. These are just a few of the regulatory schemes that financial institutions have to deal with. And as of November 1, 2008, yet another set of rules will apply: the "red flag rules."

 

The Federal Trade Commission, the Federal Reserve, the National Credit Union Administration and other financial regulators in the United States are "phasing in" what they call the Red Flag Rules, ConsumerAffairs.com reports. These rules, set out in the Fair and Accurate Credit Transactions Act, require financial institutions to set up written plans for identifying "red flag" transactions that could indicate identity theft or fraud.

 

The law became effective January 1 of this year, but full compliance is not expected until November 1. That said, November 1 is not that far away, and some companies aren't aware that the Red Flag Rules exist. To combat that lack of knowledge, the FTC issued a business alert early this month outlining what the rules are designed to do, which companies are subject to them, and where to get additional information.

 

Compliance technology providers and compliance consultants are, of course, wasting no time marketing their tools and services to help banks and others prepare for the Nov. 1 deadline. One example is Compliance Coach, which offers an identity theft red flags training course.



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Jul 29, 2008 12:16 PM AFI AFI  says:
Very good post. November will be here before we realize it.A good resource for Red Flag Rule information is at:http://www.AutoFinanceInsider.blogspot.com Reply
Aug 8, 2008 2:20 AM Brady Brady  says:
We've written an article to help financial institutions understand what the regulations mean to them:http://www.conetrix.com/articles/Identity-Theft-Red-Flags-the-readers-digest-version.aspxWe also offer an online tool to help organizations comply"http://www.conetrix.com/Identity-Theft-Prevention-Program.aspx Reply
Oct 4, 2008 4:59 AM charlotte charlotte  says:
red flage rules go into effect in less than 30 dayswe have developed a training class as dmv certified dealer education providers for california dmvthis program includes:guidelines, template, examination and an online tutorialbecome red flag compliant in our one day class50 classes in california beforenovember 1, 2008just for licensed california car dealerswho wish to become red flag compliantgood luckthxcharlotte800-901-5950dealer blog with red flags rules defined:http://www.gotplates.wordpress.com Reply
Oct 4, 2008 5:00 AM charlotte charlotte  says:
red flag rules go into effect in less than 30 dayswe have developed a training class as dmv certified dealer education providers for california dmvthis program includes:guidelines, template, examination and an online tutorialbecome red flag compliant in our one day class50 classes in california beforenovember 1, 2008just for licensed california car dealerswho wish to become red flag compliantgood luckthxcharlotte800-901-5950dealer blog with red flags rules defined:http://www.gotplates.wordpress.com Reply
Oct 22, 2008 10:14 AM Matthew Matthew  says:
I know a lot of companies are charging anywhere from a few hundred to a few thousand for this Identity Theft Awareness training program. I partnered with a company that does the training for FREE and offers a TOP voluntary legal and Identity Theft protection plan for the employees, through Kroll Background America, the world's leading risk management consulting firm. This serves as a great Red Flag tool and limits employer liability! You can reach me at 813.763.1800 or 888.640.3807 if you have any questions and I can direct you to our Ceritfied Identity Theft Risk Management Specialist! Reply

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