Establishes the opt in program for reporting of suspected financial exploitation

Title of bill

An act to amend the banking law, in relation to establishing the opt in program for reporting of suspected financial exploitation

Purpose or general idea of bill

To offer options for individuals to be protected in the event of suspected financial exploitation.

Summary of specific provisions

Creates a new article 2-D of the banking law as follows:

*The Department of Financial Services, in consultation with the Director of the Office for the Aging, the Attorney General, representatives of the financial services industry, law enforcement, senior groups, senior centers, independent living centers, disability groups, the New York State Office for the Prevention of Domestic Violence, and district attorneys, would be required to develop a program for mandatory reporting that seniors would be able to opt in to be covered. They shall develop guidelines for when and how to report financial exploitation, including how to determine the signs and the applicable laws that must be followed. They shall also develop a training program to be implemented by bank employees, as well as a brochure available to bank customers.

*If the account holder had opted in to participate in the program, and there was an instance of suspected financial exploitation, a report would be made to appropriate law enforcement and adult protective services. This report would be mandatory if the senior had opted in.

*If the account holder had not opted to participate in the program, then there would be no mandate that a report of suspected financial exploitation be made.

*The account holder may revoke their participation at any time.

*The employee of the financial institution who acts in good faith shall have immunity from civil liability.

Justification

Financial exploitation is a large and quickly growing segment of elder abuse as well as abuse of vulnerable adults. Financial institutions are often in an excellent position to see evidence of exploitation. However, not all account holders would want to have law enforcement or adult protective services involved, especially if the suspect is a family member. This bill would provide the bank is mandated to report potential incidents of financial exploitations for those who wish to have that umbrella of protection and have chosen to opt-in while preserving the privacy of those who do not.

Prior legislative history

A.7345B of 2013-2014

Fiscal implications

To be determined.

Effective date

This act shall take effect on the 60th day.