Stopping Fraudulent Payments Act authorizes pausing and segmenting payments to prevent fraud.
The Stopping Fraudulent Payments Act amends title 31, United States Code, to authorize agencies to pause and segment payments when there is a risk of fraud. It requires agencies to notify payees when a payment is paused, conditioned, or segmented, and outlines the process for reviewing the payment. The act defines "routine, historically consistent payment amount" and "fraud-risk indicator," and mandates that agencies base their actions on objective, documented fraud-risk indicators. The Secretary of the Treasury must issue regulations to administer the requirements of this act.
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