How will compliance be enforced?

According to the FTC’s website, the FTC does not conduct routine compliance audits.  The FTC can conduct investigations to determine if a business within its jurisdiction has taken appropriate steps to comply with the Red Flags Rule.  Such an investigation could include obtaining documentation related to the compliance and conducting interviews. 

In the event of noncompliance, the FTC can seek both monetary civil penalties and injunctive relief for violations of the Red Flags Rule.  The law currently sets $3,500 as the maximum civil penalty per violation. 

Red Flag Rules information

Definitions - creditors, financial institutions and covered accounts

How will compliance
be enforced?

Helpful link