The financial industry has experienced a gradual rise in fraudulent money movement transactions. Historically, these fraud cases have been associated with third-party transactions. In recent years, there has been a notable shift towards fraudulent activities occurring within same-name transactions and requests seemingly coming from the client via electronic means. In response to these evolving threats and to safeguard your clients’ assets, we are instituting enhancements to our client verification processes.
Enhanced Client Validation Procedures
Effective January 2, 2024, the enhanced client validation procedures, previously integrated into the Money Movement Request tool in Unio, will be extended to encompass all requests received through the Cashiering Department. This includes requests submitted via Money Movement Request, Unio repository or email. The forthcoming changes in our processes are outlined below:
Unio Repository
When uploading a cashiering document in the Unio Repository for your client, a new client verification box will be generated. This new attestation box will give you the ability to electronically capture the date and time of your interaction with the client and further verify that the requested transaction is confirmed and validated with the client.
An example of the authentication is as follows:
Upon receipt of my client’s money movement request that was provided to me in writing or via electronic delivery, I hereby confirm that I spoke with the client in person or via telephone to confirm the instructions and their identity based on nonpublic, personal information available in the Firm’s records. By checking this box, I understand that I am responsible for any loss that may arise based on failure to follow Firm policy and procedures including the verification of money movement request.
Note: When another user is uploading on behalf of the individual who communicated with the client, a comment should be made indicating the name of the person who performed the client validation.
Email Delivery
Email requests for money movement transactions will now need to include a statement of verbal client validation of the request. To avoid any rejections or delays, each email request must contain the following information.
The name of the person who performed the client validation