Summary of Financial Assistance Programs

The following provides clarification on several assistance programs in place to assist victims of Hurricane Katrina. This information is provided to help financial institutions be fully aware of existing programs.

FEMA

FEMA is issuing U.S. Treasury Checks and Electronic Funds Transfers. Learn more about the Treasury check security features at http://www.fms.treas.gov/checkclaims/check_security_new.pdf. In addition, the FEMA disaster assistance check has "disaster assistance" written on the bottom left of the check and FEMA's Agency Location Code (the ALC is 70070002) is located on the second line of the check. Financial institutions can also call the FRB Richmond at the number given on the webpage and reference the check number. The FRB Richmond will be able to provide the recipient name and dollar amount but will not be able to confirm that the check is not a forgery.
FEMA has stopped the debit card program, but approximately 11,400 were distributed in Houston, Dallas and San Antonio. See "Using Your FEMA Assistance Card" for more information.
FEMA is not issuing handwritten checks. If you are presented with a handwritten FEMA check, please make a copy of it and refer it to the proper authorities so that officials can attempt to verify its authenticity.

The American Red Cross

The American Red Cross is distributing a Disbursing Order (DO) document that can be used for the purchase of goods and/or services from authorized vendors. The Federal Reserve system is currently working with the ARC to make these forms available for cash at financial institutions. Some financial institutions with relationships with local chapters of the Red Cross have been converting these DOs to cash. Financial institutions are not obliged to convert these DOs to cash, only those comfortable doing so. More information will be provided as it becomes available. See the following for examples: Sample 1, Sample 2, Sample 3, and Sample 4.
The American Red Cross is distributing a stored value card that is not redeemable at a financial institution for cash.
American Red Cross chapters may issue a handwritten check for individual assistance as a last resort. Each ARC Chapter check is clearly identified with the local chapter's business information and generally carries the ARC corporate branding. More information will be provided as it becomes avilable.

Benefit Payments

Treasury's Financial Management Service issued guidance to financial institutions on benefit checks (also U.S. Treasury checks) and third party drafts. See http://www.fms.treas.gov/flexibility_thirdparty.html for more information.
This guidance offers advice to institutions attempting to verify the identity of a beneficiary. Please note that the issuing agency (Social Security Administration, Department of Veteran Affairs, etc) will not verify identity to a third party but will identify an individual when that individual is on a three way call or speaker phone with the institution.
As the guidance states, VA is issuing third party drafts with an accompanying letter signed by the director of the regional office that is issuing the draft (See example letter). This letter should also be on VA letterhead. The appearance of the check may vary between regional offices (See example).
The SSA is also issuing an accompanying letter, the letter would have text similar to that contained in this example. See example letter. Most SSA payments are computer generated, some may be hand written. See an example SAA payment check.

Please remember that forging a federal government document is a federal crime. Please make copies of any suspicious document that you receive, whether you cash it or not, and report it to the proper federal authorities, including, but not limited to, the U.S. Secret Service and the FBI. In addition, you should send a copy to your regulator so that they can provide this information to prevent additional financial crimes.

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The Office of the Comptroller of the Currency was created by Congress to charter national banks, to oversee a nationwide system of banking institutions, and to assure that national banks are safe and sound, competitive and profitable, and capable of serving in the best possible manner the banking needs of their customers.