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 at: www.acams.org/redflags2.aspx.
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 session.
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.