Assessing Controls to Mitigate the Risk of Elder Financial Exploitation as a Vehicle for Money Laundering and Terrorist Financing

Karen Motley, CAMS-Audit

The risk of the potential for elder financial exploitation to become a vehicle for money laundering and terrorist financing has increased as evolving technologies create more opportunity for financial exploitation of the elderly through social engineering and cybersecurity threats. It is therefore necessary for financial institutions to strengthen controls to monitor and mitigate this risk in their BSA/AML compliance programs. In fulfilling the independent testing pillar of these programs, Internal Audit must also enhance testing approaches and procedures to ensure the institution has adequately assessed and responded to this emerging risk. This whitepaper seeks to set the context for these enhancements and to propose practical changes to internal audit work programs and test procedures.

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