Recover COVID Unemployment Fraud in Banks Act

This legislation aims to recover improperly paid or fraudulently obtained federal pandemic unemployment compensation funds. It establishes a National Recovery Coordinator within the Department of Labor and a multi-agency Recover Pandemic Unemployment Funds in Banks Task Force , comprising representatives from the Departments of Justice, Labor, and Treasury, along with the FDIC and CFPB. The Task Force's primary role is to coordinate with state agencies to identify federal pandemic unemployment payments issued on prepaid debit cards that are currently held by financial institutions or have been escheated to state unclaimed property administrators. The Task Force is charged with developing comprehensive guidance for states and financial institutions. This guidance will outline model processes for the cost-effective recovery of improper payments, including methods for determining fraud, actions to take, and procedures for returning funds to the federal government. It also includes information for financial institutions on legal pathways for returning funds and a model notice for individuals whose identities were fraudulently used to obtain benefits. The Secretary of Labor will reimburse states for administrative costs incurred while coordinating with the Task Force. Furthermore, the bill extends the statute of limitations to 10 years for criminal prosecutions and civil enforcement actions related to fraud concerning various pandemic unemployment programs, including Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earner Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. This extension applies to a range of federal fraud statutes, but it does not retroactively apply to cases where the original statute of limitations had already expired before the bill's enactment.