# Financial Exploitation Prevention Act of 2023

This bill is designed to protect people—especially seniors and vulnerable adults—from financial scams and abuse. It creates new rules for banks and financial institutions to help spot when someone might be getting taken advantage of financially and gives them tools to step in and prevent the damage.

The core idea is that banks often see warning signs of financial exploitation before anyone else does. When an elderly person suddenly starts making unusual wire transfers, or a vulnerable adult's account shows suspicious activity, the bank might be the first to notice something is wrong. This bill requires financial institutions to develop plans for identifying these red flags and train their employees to recognize them. It also allows banks to delay or block suspicious transactions when they reasonably believe someone is being exploited, giving families and authorities time to investigate and intervene.

The bill also creates requirements for banks to report suspected financial exploitation to law enforcement and adult protective services, similar to how they already report suspected money laundering. This means if a bank employee notices patterns that suggest an older person or vulnerable individual is being scammed or abused financially, they have a responsibility to alert authorities who can help. Additionally, the bill protects banks from liability when they act in good faith to prevent exploitation—so a bank won't face lawsuits just for trying to protect a customer from fraud.

In practical terms, this means if you're worried about an elderly parent or vulnerable family member, banks will be better equipped to catch financial abuse early. It also means your bank might contact you or authorities if they notice suspicious activity on your account, which could feel intrusive but is intended to protect you from becoming a victim of financial crime.

Financial Exploitation Prevention Act of 2023

Hagerty, Bill

Financial Exploitation Prevention Act of 2023 This bill addresses the redemption of securities involving the potential financial exploitation of an adult by allowing an open-end investment company to elect to comply with certain procedures. (Open-end investment management companies offer securities in pooled investment vehicles such as mutual funds.) Specifically, the bill allows for the delay of the redemption of a security issued by an open-end investment management company if the company reasonably believes the redemption involves the financial exploitation of an individual age 65 or older or an individual age 18 or older who is unable to protect his or her own interests. The company may initially delay the redemption for up to 15 days and, upon making a determination of exploitation, may delay the redemption an additional 10 days. In the event of delay, the company must hold the amounts related to the redemption in a demand deposit account. Additionally, the Securities and Exchange Commission must make legislative and regulatory recommendations to address the financial exploitation of these adults.