Protecting Elders from Wire Fraud Act

This bill, known as the "Protecting Elders from Wire Fraud Act," amends existing law to strengthen protections against elder financial exploitation. It makes it mandatory for covered financial institutions and their employees, referred to as "covered individuals," to report suspected exploitation of a senior citizen to a covered agency within five days of initial suspicion. This shifts the previous discretionary reporting to a compulsory duty, aiming to ensure timely intervention.

When reporting, covered individuals must provide specific information, including the senior citizen's details, the nature of the suspected exploitation, and any relevant observations. Crucially, if exploitation is suspected, the financial institution shall place a hold on the proposed transaction for up to 30 business days to assess its legitimacy. This hold can be extended for two additional 30-day periods if the transaction's legitimacy remains undetermined.

Upon placing a hold, the financial institution must notify a trusted contact or a reasonably associated third party within one business day, providing details about the account, the transaction, and the reason for the hold. Additionally, covered individuals are permitted to share information about suspected exploitation with persons reasonably associated with the senior citizen, unless that person is suspected of involvement. Institutions are also required to provide requested records to covered agencies within two business days.

The bill establishes a safe harbor, protecting financial institutions from liability for refusing or delaying transactions in good faith or for disclosing information as required by the Act. It also clarifies that its provisions do not preempt state laws that offer greater consumer protection, ensuring that stronger state-level safeguards remain effective. The amendments are set to take effect 180 days after the bill's enactment.