Banks and credit unions will be able to do more to stop financial exploitation

More vulnerable adults could be protected from financial exploitation with additional tools for banks and credit unions included in a new law that takes effect Aug. 1, 2020.

Rep. Jennifer Schultz (DFL-Duluth) and Sen. Karin Housley (R-St. Marys Point) sponsor the law that will hold financial services providers – as well as broker-dealers and investment advisers – responsible for reporting when they believe financial exploitation may have occurred or been attempted.

The law will also provide financial services providers and their employees with the protections needed to safely make good faith third-party disclosures, testify about alleged financial exploitation, delay a disbursement, or hold transactions.

This will enable financial service providers to take action on suspicious transactions if requested to do so by law enforcement or prosecutors, in response to an internal review, or when other conditions have been met.

Accounts won’t be put on hold. But specific, suspicious transactions could be held for 15 days, or until the financial institution could establish the reasonable belief it won’t result in exploitation. A law enforcement agency or the prosecuting attorney could request the hold be extended up to 25 days. The holds could also be appealed.

HF2475/SF2466*/CH85

SF2466* / HF2475 / CH85