Regulators say that it is
not a violation of privacy in the Gramm-Leach-Bliley Act for financial advisers to report suspected
financial abuse of the elderly to local, state or federal agencies. Not
only are they permitted to do this, but
regulators are encouraging banks and other financial advisers to report instances of suspected exploitation
of the elderly.
The Gramm-Leach-Bliley Act states that no financial or broker firm has
the right to disclose a client's information to a third party without
first informing that client and giving them the opportunity to refuse
the release of this information. Disclosing information regarding possible
abuses to government agencies is not barred by this act,
according to a statement released Tuesday.
The Director of the Consumer Financial Protection Bureau stated "Reporting
suspected elder financial abuse to the appropriate authorities is typically
the right thing to do and generally will not violate the Gramm-Leach-Bliley
The director went on to explain that senior citizens are common targets
of financial abuses such as investment fraud because not only do they
possess accumulated assets at their age, but many of them also suffer
from weakened mental aptitude.
Banks and other financial institutions are encouraged to be on the lookout
for activity such as:
- Irregular transactions,
- Repeated large withdrawals,
- Purchase transactions uncommon for older adults,
- Attempting to wire large amounts of money at random,
- Closing accounts despite penalties, and
- Any other uncommon or suspicious activity.
If you believe that your elderly loved one has fallen victim to a financial
scam and suffered significant losses, please
contact an investment fraud lawyer at Meyer Wilson today to receive a free evaluation of your case.
Watch the video below for more information on elder financial abuse.