West Virginia banks may pause transactions amid suspected exploitation

A depository institution or its employees must promptly notify a designated state agency when they believe financial exploitation of an eligible adult has occurred, may have been attempted, or is being attempted. An eligible adult includes a person age 65 or older, a person covered by the state’s adult-protection law, or a person age 18 or older with a serious decision-making impairment or a guardian, when the institution knows of the impairment or guardianship.

A depository institution or its employees may delay or refuse certain transactions or account actions when they believe financial exploitation may have occurred, was attempted, is occurring, or is being attempted. The authority covers transactions involving the eligible adult, withdrawals, account ownership or transfers, certain instructions from a power-of-attorney agent, and beneficiary changes. The belief must be based on personal observation or information from a government or law-enforcement agency. The institution is not required to act and decides whether to act based on the information available. The institution must keep internal records of any delay or refusal. A hold ends 15 business days after the bank first acts, unless an investigating state agency requests an extension of up to 30 days. It ends sooner if the bank believes exploitation is unlikely or a court orders the funds released.

A depository institution or its employees may notify an associated third party when they believe financial exploitation may have occurred or may be occurring. An associated third party may be a named emergency contact, certain relatives or people connected to the account, or a court- or government-appointed financial manager. The institution may withhold notice if it believes the person may be involved in the exploitation. It may limit what it shares to its suspicion that the adult may be a victim or target. The disclosure is exempt from state privacy laws and requirements.

A depository institution or its employee is immune from criminal, civil, or administrative liability for specified disclosures, notifications, proceedings, and decisions to delay or not delay transactions, if acting in good faith and following the article. The protection applies to depository institutions and their employees. The protection also covers accepting an eligible adult’s designation of an associated third party and information provided about that person. The institution or employee must act in good faith and in accordance with the article.