Financial institutions can pause transactions to protect older and vulnerable adults

Covered financial institutions may reject or pause transactions when they reasonably believe financial abuse has occurred or may occur. The rules cover adults 55 or older and vulnerable adults under state law. They reach those adults’ accounts, accounts benefiting them, and suspected abusers’ accounts. Banks and other financial services companies qualify, except state-defined broker-dealers and investment advisers. Acting is optional, including when police or investigators provide information supporting the suspicion. Institutions must reasonably try to notify authorized account users, except suspected abusers, and report incidents involving vulnerable adults to the appropriate investigators. The hold deadlines do not apply to transactions declined because of suspected fraud. Courts may end or extend holds. The law took effect May 19, 2026. A hold ends when the institution finds the transaction safe or 30 business days after the first rejection or hold, whichever comes first. An appropriate investigator’s request can extend the limit to 55 business days after that starting date, unless a court orders otherwise.

Covered financial institutions may share relevant records with police or responsible investigators and alert certain contacts about suspected financial abuse. The permissions cover adults 55 or older and vulnerable adults under state law. Alerts may go to customer-selected contacts, people connected to the account, or known family members and close associates. Shared records may include past transactions relevant to suspected abuse. Institutions may offer customers a contact list they can update. Alerts require reasonable cause to suspect abuse and cannot go to a suspected abuser. Institutions may limit an alert to their suspicion without revealing other private financial details.

Financial institutions and employees receive protection from criminal, civil, and administrative liability for specified actions taken in good faith and under this law’s rules. Protection covers rejecting payments, permitted alerts, and related actions such as reports and record sharing. An affected adult may sue an institution that helps the abuse. A guardian or representative may sue for the adult only if neither involved in nor suspected of participating in the abuse. Protection requires good faith and compliance with this law. Institutions remain open to civil claims for participating in or substantially helping financial abuse.