Red Flag Processing

System Management System Management Red Flag Processing

This document provides technical guidance on utilizing the Red Flag Processing program within the FLEX system. This module assists credit unions in identifying and managing potential red flag situations by allowing the configuration of specific parameters.

1. Accessing the Red Flag Processing Program

The Red Flag Processing program is located within the Internal Audit section of the FLEX Main Menu.

  • Navigation Path:
    • FLEX Main Menu
    • Internal Audit
      • Red Flag Processing
        • Red Flag Processing Processing
        • Remove Red Flag Holds

2. Red Flag Filters

The Red Flag Processing module allows users to create, save, and apply filters to identify potential red flag activities.

2.1. Filter Management

  • Creating a New Filter: Click the New button to initiate the creation of a new filter.
  • Saving Filters:
    • Save: Saves the current filter criteria.
    • Save As: Saves the current filter criteria under a new name.
  • Deleting Filters: Select an existing filter and click the Delete button.
  • Applying Filters: Select a saved filter from the “Red Flag Filter Name” dropdown.

2.2. Available Filter Options

The “Filters” section provides various criteria to define red flag parameters. Once a filter type is selected, additional fields become available for value entry. Click Add to include the criteria in the filter.

  • Significant Frequent Deposits:
    • Deposits Over: Enter the minimum dollar amount for deposits to be included.
    • Number of Valid Deposits: Enter the minimum count of deposits meeting the “Deposits Over” criteria.
    • Number of Days: Enter the number of days to search for designated deposit amounts.
  • Large Deposits:
    • Deposits Over: Enter the minimum dollar amount for deposits to be included.
    • Number of Days: Enter the number of days to search for designated deposit amounts.
  • Frequent Overdrafts:
    • Number of Valid Overdrafts: Enter the minimum number of overdrafts for an account to be included.
    • Number of Days: Enter the number of days to search for overdraft transactions.
  • Large Withdrawals:
    • Withdrawals Over: Enter the minimum dollar amount for withdrawals to be included.
    • Number of Days: Enter the number of days to search for designated withdrawal amounts.
  • Withdrawal Frequency:
    • Number of Withdrawals: Enter the minimum number of withdrawals for an account to be included.
    • Number of Days: Enter the number of days to search for withdrawal transactions.
  • Fluctuations in History Balance:
    • Number of Days: Enter the number of days to be included in the search.
    • Allowed Variance: Enter the maximum dollar amount the balance is allowed to fluctuate. Fluctuations exceeding this amount will be included.
  • Hold Amount Exceeds Available Funds:
    • % Allowed to Exceed: Enter the percentage the hold amount is permitted to exceed the available balance.
  • Comparison of Deposits to Check:
    • Number of Lag Days: Enter the number of days to include in the comparison of deposits to checks.
  • Account Transfer Same SSN/Address:
    • Over Dollar Amount: Enter the minimum dollar amount for transfer transactions to be included.
    • Number of Valid Transfers: Enter the minimum count of transfers meeting the “Over Dollar Amount” criteria.
    • Number of Days: Enter the number of days to be included in the search output.
  • High Number of Deposits/Withdrawals:
    • Number of Deposits/Withdrawals: Enter the required number of deposits/withdrawals to be included.
    • Number of Days: Enter the number of days to be included in the search output.
  • Similar Amount Deposit Withdrawals:
    • Amounts Over: Enter the minimum dollar amount for deposits/withdrawals to be included.
    • #Transfers: Enter the number of transfers to be included.
    • #Days: Enter the number of days to be included.
    • Variance: Enter the dollar amount the balance is allowed to fluctuate.
  • Even Dollar Deposits:
    • Check Deposits Over: Enter the minimum dollar amount for check deposits to be included.
    • Number of Deposits: Enter the required number of deposits to be included.
    • Number of Days: Enter the number of days to be included.
  • Increasing Dollar Amount Deposits:
    • Number of Increases: Enter the required number of increases to be included.
    • Number of Days: Enter the number of days to be included.
  • Teller ID:
    • ID: Select a specific Teller ID to search for.
  • OP Code:
    • OP Code: Select a specific OP Code to search for.
  • Share Type:
    • Share Type: Select a specific share type to search for.
  • Exclude Transfers:
    • Checkbox: Check this box to exclude any transactions designated as a transfer from the search results.

3. Red Flag Holds Panel

After running a filter, the results are displayed in the bottom panel, which is divided into two tabs:

  • Potential Tab:
    • Displays accounts that meet the defined filter criteria and are identified as potential red flag situations.
    • Flag Checkbox: Check this box to include an account for flagging.
    • Flag Accounts Button: Click this button to flag the checked account(s) by placing a hold on all funds within those accounts.
  • Current Tab:
      • Displays accounts that currently have an active red flag hold in place.