What's happening
This bill requires financial institutions to report suspected financial exploitation and provides immunity from civil liability for good faith reporting.
Why it matters
Empowers financial institutions to be proactive in identifying and reporting suspected financial exploitation, potentially leading to earlier intervention and protection for vulnerable individuals (such as seniors and people with disabilities).
Mandates the creation of clear, standardized guidelines—developed collaboratively by financial regulators, law enforcement, senior groups, and industry representatives—so institutions know exactly what constitutes suspicious activity and how to report it.
Shields financial institutions and their employees from civil lawsuits when they report suspected exploitation in good faith, reducing legal risk and making it more likely they will report suspected abuse without fear of retaliation.
Requires ongoing regulatory oversight and rulemaking by the superintendent, ensuring that the reporting system and guidelines can adapt over time to new threats and best practices in preventing financial exploitation.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Banks, credit unions, investment brokerages and their employees
The bill would provide immunity from civil liability for reporting suspected financial abuse reasonably, in good faith and in accordance with the guidelines.
Department of Financial Services
The superintendent would have to develop reporting guidelines and issue any rules or regulations needed to implement the bill.
Office for the Aging and senior groups
They would be consulted on guidelines covering warning signs of financial exploitation, when and to whom to report it, and what reports should include.
Attorney general, district attorneys and law enforcement
They would help shape the reporting guidelines through consultation with the superintendent.
Headline styles
Report Suspected Financial Abuse
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to banks
- Referred to banks
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2804
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to reporting of suspected financial exploitation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 9-x to read as follows:
§ 9-x. Reporting of suspected financial exploitation. 1. For purposes of this section, the following terms shall have the following meanings:
(a) "financial exploitation" shall mean activity prohibited pursuant to sections 190.25, 190.26, 190.60, 190.65, 190.78, 190.79, 190.80, 190.80-a, 190.81, 190.82, and 190.83 of the penal law or activity meant to deprive an individual of assets or property by deceptive, manipulative, or other illegal means.
(b) "financial institution" shall mean any banking institution, credit union, investment brokerage, and any other entity licensed by the superintendent.
(c) "superintendent" shall mean the superintendent of the department of financial services.
2. The superintendent, in consultation with the director of the office for the aging, the attorney general, representatives of the financial services industry, law enforcement, senior groups, and district attorneys, shall develop guidelines relating to reporting suspected financial exploitation. Such guidelines shall include, but not be limited to:
(a) the types of warning signs and evidence that would be acceptable indicators of financial exploitation;
(b) when suspected financial exploitation should be reported;
(c) to whom suspected financial exploitation should be reported;
(d) information that should be included in a report of suspected financial abuse; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07199-02-7
S. 2804 2
(e) the applicable laws, rules and regulations that must be followed while reporting suspected financial abuse.
3. A financial institution located or doing business in this state or an employee thereof who, acting reasonably and in good faith in accordance with these guidelines, reports suspected financial abuse shall have immunity from any civil liability that might otherwise result by reason of such actions.
4. The superintendent is directed to promulgate any rules or regulations necessary to carry out the provisions of this section.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2015-16: S.2564A - Amend and Recommit to Banks 2013-14: S.5478 - Referred to Banks
Fiscal implications
To be determined.
Effective date
This act shall take effect on the 90th day.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.