Financial institutions would report suspected exploitation of older adults

A financial institution employee must report suspected exploitation to the institution's designated representative. The duty covers employees who have direct contact with an older adult or access to, or direct knowledge of, the adult's account or financial records. The employee must have reason to believe exploitation may have happened, been attempted, or be underway. The text says employees must report within “two days business days”; that wording is unclear.

A designated representative must review employee reports and report suspected exploitation to an aging agency or the Department of Aging when there is reasonable cause. Reports must identify the older adult and financial institution, describe the suspected exploitation, and include other information the institution finds useful to an investigation. The representative may also send a copy of the report to law enforcement. The Department of Aging must develop guidance identifying incidents excluded from mandatory reporting; representatives may still report those incidents voluntarily. The representative must review the report no later than five business days after receiving it.

A financial institution may temporarily hold, refuse, or prevent certain transactions involving an older adult. Covered activity includes withdrawals, transfers, account ownership or beneficiary changes, and instructions from an agent under a power of attorney. The institution must have reasonable cause to believe exploitation may have happened, been attempted, or be underway. The institution must report its action by the next business day and notify the older adult and others authorized on the account, except anyone reasonably believed to be involved in the suspected exploitation. A hold may end sooner in specified circumstances, including a court order or a request from law enforcement or an aging agency. A hold may last up to seven business days. It may be extended by up to 15 more business days; an agency requesting an extension must document the reason in writing.

The Department of Aging must develop training, issue recurring reports, and may penalize a financial institution for a designated representative's willful or intentional failure to report. Training is for financial institution employees and designated representatives. Reports cover institutions' reports and held transactions. The training must be developed with the Department of Banking and Securities and financial industry representatives. The penalty for failure to report must be at least $500 and no more than $2,500. A representative or officer who willfully or intentionally aids exploitation, or retaliates against an employee for trying to comply, commits an offense; a second or later violation is a second-degree misdemeanor. The first report is due within six months after the section takes effect; later reports are due each December 31 and cover the prior 12 months.

A financial institution may give some account information to an authorized person, and must provide relevant records to an investigating agency upon written request. Authorized people include certain account contacts, fiduciaries, co-owners, signers, and professionals who assist with the older adult's finances. The institution may not share information with someone it has reason to believe is knowingly involved in or facilitating the exploitation. Disclosure is limited, with broader sharing allowed to certain people already authorized on the account. Records provided to investigators receive confidential treatment, with specified exceptions for regulatory or legal work. The institution must provide requested records within 10 business days.