Georgia lets banks pause suspect transfers for older adults and limits crypto kiosk fees and amounts

A new part of Georgia banking law lets financial institutions place temporary holds on suspect transactions and sets how to notify people, train staff, and keep records. It covers financial institutions and accounts of eligible adults, meaning people 65 or older or disabled adults, accounts where they are beneficiaries, and accounts of people suspected of the exploitation. The institution must notify in writing all parties authorized on the account and any trusted contact within three business days, unless it reasonably believes they are involved in the suspected exploitation, and must review the facts. A hold may also rest on information from the Department of Human Services or a law enforcement agency. A court may shorten or extend a hold. Before placing a hold, the institution must train employees, keep written training records, and maintain written review procedures. It must also keep a record of every hold. An institution acting in good faith with reasonable care is immune from administrative, criminal, and civil liability for a hold or delay, and generally for not placing one. A hold expires on the fifteenth business day after it is placed and may be extended once for up to 15 more business days if the review still supports suspicion.

The act adds a new part for virtual currency kiosk operators with disclosure, fee, limit, refund, and compliance rules, and treats kiosk transfers as money transmission. It covers operators and owners of virtual currency kiosks in Georgia and their customers. A new customer has been registered with the operator less than 72 hours. Before a first transaction, the customer must acknowledge a bold warning that losses from fraudulent or accidental transactions may not be recoverable and that transactions are irreversible. A new customer defrauded or deceived into transactions during the first 72 hours could get a full refund by asking the operator and contacting a government or law enforcement agency within five days of the last transaction. Any defrauded customer could get fees back. Operators would have to collect a government ID, run blockchain analyses to block high risk wallets, offer recorded live phone support, and employ a full-time chief compliance officer. Refunds are due within 72 hours of the request. Daily limits are $2,500 for a new customer and $10,000 for an existing customer.

The act revises Georgia's litigation financing law to add registration, investigation, renewal, and enforcement steps and a disclosure on each agreement. It covers litigation financiers (companies that provide money for lawsuits in exchange for payment that depends on the outcome) and the Department of Banking and Finance. Financiers must apply through the Nationwide Multistate Licensing System and Registry with a nonrefundable fee and criminal history checks. An unregistered person may be ordered to cease and desist, and the order is final in 30 days with no administrative hearing unless the person registers. Violating a final order can bring a civil penalty up to $1,000 a day. Each litigation financing agreement must show the registrant's name, unique identifier, and business address. Registrations expire each December 31, and renewal applications are due on or before December 1.

The act amends many other banking and finance sections, including merger notice, licensing exemptions, and merchant acquirer limited purpose bank rules. It covers banks, credit unions, trust companies, mortgage and installment lenders, merchant acquirer limited purpose banks, and the Department of Banking and Finance. Only a merchant acquirer limited purpose bank may use the term "MALPB." The department could object to certain mergers for good cause, and the merger could not close without its approval after an objection. Installment lender licensing exemptions are revised for banks and credit unions with federally insured deposits and their wholly owned subsidiaries.