Maine S.P. 586 - L.D. 1445: An Act to Prevent Financial Exploitation of Vulnerable Adults

Authorizes financial institutions to place extended holds on transactions involving suspected fraud against seniors, with required policies and safeguards to prevent unnecessary delays.

Status: Passed State: Maine Tags: Transaction Controls, Vulnerable Populations

About the Legislation:

Allows financial institutions to place additional holds and delays on transactions when there is reasonable suspicion of fraud against a senior citizen. The intent is that the extra time will allow investigation by the financial institution as well as cooperation with law enforcement. The statute requires that a bank has a policy in place to govern such a program and that suspicion must be legitimate and not delay longer than necessary.

The Maine Bankers Association testified in support of the bill and worked with the sponsor and other stakeholders, including AARP and law enforcement. It is a strong bill that helps move things in a positive direction, though I assess the overall impact will be somewhat limited. As the bill moved through the process, it was considered a mid-level priority for us. There was minimal downside, but also limited upside. That said, it did help position bankers in a very positive light by demonstrating cooperation in addressing a widespread and well-understood challenge.

Read the Legislation

State Association Contact

Josh Steirman, Director of Government Relations

Any updates or new legislation should be sent to fraud@aba.com.

Maine S.P. 586 - L.D. 1445: An Act to Prevent Financial Exploitation of Vulnerable Adults

About the Legislation:

State Association Contact

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