Relates to the report of suspected financial exploitation

Title of bill

An act to amend the banking law, in relation to reporting of suspected financial exploitation

Purpose or general idea of bill

To encourage voluntary reporting of suspected financial exploitation.

Summary of specific provisions

Creates a new section 9-x of the banking law as follows:

* The Superintendent of the Department of Financial Services would develop guidelines for reporting suspected financial exploitation in consultation with the State Office for the Aging, NYS Attorney General, representatives of the financial services industry, law enforcement, senior groups, and district attorneys; and

* If a report of suspected financial exploitation were to be made in accordance with those guidelines, the individual making the report would be protected from liability-resulting from that report.

Justification

Financial exploitation is a large and quickly growing segment of elder abuse. Seniors are not always very savvy with money, and, as their faculties fade, they sometimes become targets for scam artists and undue influence. Financial institutions are often in a prime position to notice changes in behavior or suspicious patterns of withdrawals and investments. Fear of being sued, especially if the abuser is a family member, has been raised as a barrier to voluntary reporting by employees of financial institutions. This bill would protect those who report suspected financial exploitation, but only if the report is made by following guidelines set by the Department of Financial Services.

Prior legislative history

2013-14: S.5478 - Referred to Banks

Fiscal implications

To be determined.

Effective date

This act shall take effect on the 90th day.