Financial institutions may pause transactions over suspected adult exploitation

A financial institution may delay or refuse specified transactions and account actions when it reasonably believes financial exploitation may have occurred or been attempted, is occurring, or is being attempted. This covers accounts owned by or benefiting a consenting adult, an adult age 65 or older, or an adult age 18 or older with a substantial mental or functional impairment or an appointed guardian or conservator. The institution may also act on information from a state or law enforcement agency that makes a belief of exploitation reasonable. The institution is not required to act and may decide based on the information it has at the time.

A financial institution may notify a person associated with an adult about suspected financial exploitation. Associated people include family or close associates, a contact named by the adult, account co-owners or beneficiaries, fiduciaries managing the adult’s finances, and an attorney known to represent or have represented the adult. The institution may withhold notice if it reasonably believes the person is or may have been involved in the exploitation, or if law enforcement asks it not to notify the person because notice could interfere with an investigation.

The authority to delay or refuse transactions under this law ends at the earliest of the listed events. This applies to the authority to take the transaction and account actions described in the law. A financial institution may extend the authority if it reasonably believes exploitation may continue or be attempted, unless a court order directs otherwise. The law gives financial institutions and specified related people immunity from civil, criminal, or administrative liability for acting under the law, not acting under it, or taking steps to support their decisions. A refusal under the law is not wrongful dishonor of an item. The 30-business-day period starts on the date the institution first acts under the law.