What should an agent do upon discovering unauthorized withdrawals from the trust account?

When an agent discovers unauthorized withdrawals from a trust account, the appropriate action is to promptly notify the Professional Affairs Board (PAB) and contact the authorities. This is crucial because unauthorized withdrawals can indicate fraud or mismanagement, potentially affecting the trust account's integrity and the funds entrusted to the agent. Taking immediate action not only helps to safeguard the assets involved but also serves to protect the interests of clients and uphold legal and ethical standards within the agency.

Failure to act on unauthorized withdrawals can lead to further financial discrepancies and might even implicate the agent in wrongdoing if not addressed. Ignoring the issue, discussing it privately with the owner, or waiting to see if it happens again fails to uphold the responsibility and fiduciary duty that agents have toward their clients and the trust account itself. Timely reporting ensures that the issue is investigated properly and that any potential harm is mitigated efficiently.