New law empowers Idaho financial institutions to intervene in suspicious activity

by IBR STAFF 

In an effort to help senior citizens and vulnerable individuals, a new law has been enacted by Idaho lawmakers to tackle financial fraud.

At a Glance:

• Idaho enacts House Bill 182, the “Report and Hold” law
• Financial institutions can freeze suspicious transactions
• Staff and reporting parties shielded from liability
• Law protects seniors and disabled adults from exploitation

House Bill 182, or the “Report and Hold” law, gives financial institutions the authority “to place temporary holds on suspicious transactions and report suspected exploitation,” while shielding those entities’ staff from liability.

According to the Idaho Department of Finance, the law allows financial institution staff to place temporary holds on transactions or disbursements from an account if fraud or exploitation is suspected, giving law enforcement, state agencies and family members time to investigate any situations that could lead to financial loss.

The law also empowers those financial institutions or reporting persons to identify and report suspicious activity. “This may include large or irregular withdrawals, sudden changes in account behavior, or shifts in a customer’s demeanor that may indicate undue influence or fraud,” a press release stated.

Reporting parties are also protected from civil or administrative liability when acting in good faith. “This provision encourages proactive intervention without fear of legal repercussions when fraud or exploitation is reasonably believed to have occurred, is occurring, or is likely to occur,” IDOF stated. The agency also said it and the Idaho Commission on Aging should be the recipients of such reported suspected activity, forms for which can be found on the IDOF website by clicking on the tab titled “Financial Exploitation of Certain Adults.”

The law pertains to adults who are 65 years and older or adults 18 and older who have a physical or mental disability that keeps them from protecting their own interests.

The department also stated that it will help facilitate collaboration for investigation.

“The law facilitates information sharing among financial institutions, reporting persons, law enforcement and state agencies. This collaboration is expected to strengthen investigations, enhance protections for vulnerable adults, and hold perpetrators accountable.”

It is not just banks, credit unions or their staff that are covered under the new law. According to IDOF, those included are “state or federally chartered banks, savings and loan associations, credit unions, credit union service organizations, regulated lenders, collection agencies, credit counselors, debt counselors, mortgage lenders and brokers, money transmitters, escrow agencies, broker-dealers, and investment advisers licensed or registered under Idaho or federal law.” 

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New law empowers Idaho financial institutions to intervene in suspicious activity