LexisNexis Risk and Information Analytics Group and Association of Certified Anti-Money Laundering Specialists to host free Red Flags Rule educationMortgagePress.comLexisNexis Risk and Information Analytics Group, Data Privacy Day, Association of Certified Anti-Money Laundering Specialists, FACTA, Red Flags Rule
LexisNexis Risk and Information Analytics Group and the
Association of Certified Anti-Money Laundering Specialists (ACAMS)
have announced that they will offer a complimentary Web seminar to
educate organizations on how to comply with the Red Flags
provisions of the Fair and Accurate Credit Transactions Act of 2003
(FACTA). The seminar is being held on Wednesday, Jan. 28 from 2:00
p.m.3:30 p.m. ET and will feature speakers from the Federal Trade
Commission (FTC), Sprint, and LexisNexis. Attendees may register
Often believed to pertain only to banks, the Red Flags Rule
applies to any organization involved in extending credit. The rules
require these organizations to be able to identify patterns,
practices, and specific forms of activity that indicate the
possible existence of identity theft, and to develop and deploy
effective prevention programs. A recent study by the Gartner Group
estimated that there were 15 million victims of identity theft in
2006 suggesting that 28 people are victimized every minute.
However, as destructive as identity theft can be to a business, the
failure to comply with regulations such as the Red Flags Rule could
be even more disruptive and costly.
The seminar, "Red Flags Rule: New Deadline for Some, Business as
Usual for Others. Where Do You Stand?" will:
• Clarify the regulatory requirements of the Red Flags
Rule, including program development, evolution and development;
• Explain enforcement actions and regulators' expectations
regarding compliance with this rule; and
• Address questions during the live question and answer
The Web seminar will address the key areas an identity theft
program needs to cover. In addition, the speakers will show
attendees how to leverage existing customer identification programs
(CIP) to help meet new compliance obligations, streamline overall
compliance process and forge a tougher armor that can withstand
hits from regulators and fraudsters.
"As the world's leading organization for the career development
of AML professionals, ACAMS is pleased to partner with LexisNexis
in order to bring together top experts on the Red Flags Rule and
provide this much-needed regulatory clarification," said Gregory J.
Calpakis, CAMS, executive director of ACAMS.
Though the Red Flags Rule was designed to help overcome problems
associated with identity theft faced by both businesses and
consumers, the government's guidance gives flexibility to companies
to develop their own unique compliance approach. In addition, banks
and non-banks have different deadlines for compliance, with
non-banks given a deadline of May 1, 2009. Federal banks are
currently facing regulatory examination of their compliance with
the Red Flags Rule, while examinations of state-chartered banks and
creditors will also start in May.
"Even though the deadline for the Red Flags Rule was extended
for non-bank organizations until May 1, many companies still
struggle to completely understand the compliance requirements and
expectations," said Calpakis. "Seminars such as this are crucial in
getting financial institutions and other organizations--especially
those who may not be used to this level of regulation up to speed
quickly and effectively."
"Our expertise in the areas of risk management and mitigating
the threat of identity theft is unmatched as evidenced by our
development of InstantID, the only identity authentication solution
endorsed by the American Bankers Association," said Tom Brown, vice
president of financial services solutions of LexisNexis Risk and
Information Analytics Group. "While the Red Flags Rule poses a
challenge to financial services institutions, it is a challenge
that can be easily managed with the right information. We're
pleased to be able to offer our expertise to companies looking to
better understand these new regulations," said Brown.
Jan. 28, 2009, is also known as Data Privacy Day which is
designed to raise international awareness and cooperation in
discussions about data privacy practices and rights.
For more information, visit risk.lexisnexis.com.