H.R. 10350: Protecting Elders from Wire Fraud Act

This bill would require certain financial professionals and institutions to take specific steps when they suspect an older adult is being financially exploited, especially through wire transfers or similar transactions.

What it changes

It amends an existing federal law to make the protections stronger and more specific. In practical terms, it would require covered financial institutions and certain employees or representatives to:

• Report suspected elder financial exploitation quickly to the appropriate government agency within 5 days of first suspecting it.

• Include key details in the report, such as the older person’s identity and address, information about a guardian or next of kin if known, details about the financial worker and institution involved, contact information, and a description of the suspected exploitation.

• Temporarily freeze or delay suspicious transactions for up to 30 business days so the institution can check whether the transaction is legitimate.

• Allow the hold to be extended for up to two additional 30-day periods if the issue still has not been resolved.

• Notify a trusted contact associated with the account, if one exists and it appears appropriate, within 1 day of placing a hold. The notice would identify the account and transaction, explain why the hold was placed, and provide the institution’s contact information.

• Provide records promptly to the relevant agency within 2 business days if requested for an investigation.

Sharing information with family or other associated people

The bill would let the financial professional share limited information with someone reasonably associated with the older adult, unless that person is suspected of being involved in the exploitation. If the person is not an authorized agent or fiduciary, the information shared would be limited to the fact that there is reason to suspect exploitation and the general nature of it.

Liability protections

It would give financial institutions legal protection if they, in good faith, delay or refuse a transaction under the bill’s rules, or if they share information with a trusted contact, adult protective services, or law enforcement as allowed by the bill.

Effect on state laws

The bill says it would not override stronger state consumer-protection laws unless those laws conflict with the federal requirements. If a state law gives consumers more protection, it would still apply.

When it would take effect

The new rules would start 180 days after the bill is enacted.

Relevant Companies

None found