Reporting of Suspected Elder Financial Exploitation by Financial

CONSUMER FINANCIAL PROTECTION BUREAU | JULY 2019

Reporting of Suspected

Elder Financial Exploitation

by Financial Institutions

An update to the 2016 Advisory and Recommendations for

Financial Institutions on Preventing and Responding to Elder

Financial Exploitation

1 CONSUMER FINANCIAL PROTECTION BUREAU

Table of contents

1. Introduction ........................................................................................................... 2

2. Recommendations and updated information ..................................................... 4

2.1 Report all cases of suspected elder financial exploitation to relevant federal,

state, and local authorities ................................................................................. 4

2.1.1 Understand reporting requirements in your state ................................................... 4

2.1.2 State laws authorizing delays in disbursing funds ................................................... 6

2.1.3 The Senior Safe Act, a federal statute enacted in 2018, encourages reporting of

EFE and provides immunity in specified situations .................................................7

2.1.4 File Suspicious Activity Reports (“SARs”) when the financial institution suspects

elder financial exploitation....................................................................................... 9

2.2 Expedite responses when APS, law enforcement, and other government

entities investigate reports of elder financial exploitation and request

documentation, in accordance with relevant laws ........................................... 10

2.2.1 Expedite the provision of SAR supporting documentation to appropriate law

enforcement or supervisory agencies ...................................................................... 11

3. Conclusion .......................................................................................................... 13

Appendix A: Mandatory reporting of elder financial exploitation by

financial institutions ........................................................................................... 14

Appendix B: Mandatory reporting of elder financial exploitation

when a financial institution holds a transaction or delays a

disbursement ...................................................................................................... 19

Appendix C: Disclosure of financial records to adult protective

services and/or law enforcement ...................................................................... 21

2 CONSUMER FINANCIAL PROTECTION BUREAU

1. Introduction

In March of 2016, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) published

the Advisory for financial institutions on preventing and responding to elder financial

exploitation (“Advisory”)

and the accompanying Recommendations and report for financial

institutions on preventing and responding to elder financial exploitation

(“Recommendations”).

The Bureau noted that banks and credit unions are uniquely positioned

to detect that an older account holder has been targeted or victimized, and to take action. The

Advisory and Recommendations covered a spectrum of voluntary best practices to assist

financial institutions.

All of the Bureau’s 2016 recommendations remain vital today. CFPB provided six categories of

voluntary best practices to help financial institutions prevent elder financial abuse and intervene

effectively when it occurs. These categories include:

1. Developing and implementing internal protocols and procedures for protecting account

holders from elder financial exploitation;

2. Training management and staff to prevent, detect, and respond to suspicious events

3. Detecting elder financial exploitation by harnessing technology;

4. Reporting all cases of suspected exploitation to relevant federal, state and local

authorities;

5. Protecting older account holders by complying with the Electronic Fund Transfer Act

(EFTA) and Regulation E and by offering age-friendly services that can enhance

protections against financial exploitation;

6. Collaborating with other stakeholders such as law enforcement, adult protective

services, and service organizations.

See CFPB, Advisory for financial institutions on preventing and responding to elder financial exploitation (Mar.

23, 2016) [hereinafter Advisory], available at

https://files.consumerfinance.gov/f/201603_cfpb_advisory-for-

financial-institutions-on-preventing-and-responding-to-elder-financial-exploitation.pdf.

See CFPB, Recommendations and report for financial institutions on preventing and responding to elder financial

exploitation (Mar. 23, 2016) [hereinafter Recommendations], available at

https://files.consumerfinance.gov/f/201603_cfpb_recommendations-and-report-for-financial-institutions-on-

preventing-and-responding-to-elder-financial-exploitation.pdf.

3 CONSUMER FINANCIAL PROTECTION BUREAU

This update focuses on Recommendation 4 in the Advisory

regarding reporting of suspected

elder financial exploitation (“EFE”) by banks and credit unions to appropriate local, state or

federal first responders. It reiterates key recommendations regarding reporting from the 2016

Advisory and Recommendations because many financial institutions remain unsure of whether

to report suspected financial exploitation due to privacy concerns. In addition, this update

provides new information on reporting based on federal and state legislative changes. It

highlights findings from the CFPB’s 2019 analysis of Suspicious Activity Reports (SARs) on elder

financial exploitation which underscores the widespread and damaging impact of elder financial

exploitation.

Reporting of suspected EFE is listed as Recommendation 3.4 in the Recommendations.

CFPB, Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends (Feb. 27, 2019) [hereinafter

SARs Report], available at

https://files.consumerfinance.gov/f/documents/cfpb_suspicious-activity-reports-elder-

financial-exploitation_report.pdf.

4 CONSUMER FINANCIAL PROTECTION BUREAU

2. Recommendations and

updated information

2.1 Report all cases of suspected elder

financial exploitation to relevant federal,

state, and local authorities

The CFPB reiterates its 2016 recommendation that financial institutions report suspected

financial exploitation of older adults to all appropriate local, state, or federal responders,

regardless of whether reporting is mandatory or voluntary under state or federal law. In 2013,

the eight federal regulatory agencies with authority to enforce the privacy provisions of the

Gramm-Leach-Bliley Act (“GLBA”) issued Interagency Guidance on Privacy Laws and

Reporting Financial Abuse of Older Adults (“Guidance”).

The Guidance clarifies that reporting

financial abuse of older adults to appropriate authorities does not, in general, violate the privacy

provisions of GLBA. This update discusses new laws that have passed since the publication of

the 2016 Advisory, such as the Senior Safe Act.

2.1.1 Understand reporting requirements in your state

CFPB noted in 2016 that, while it recommends that everyone in every state report suspected

financial exploitation to all appropriate first responders, at that time only about half the states

mandated that financial institutions or a subset of financial professionals report suspected EFE

to Adult Protective Services (“APS”),

law enforcement or both.

The CFPB recommended that

Fed. Reserve, CFTC, CFPB, FDIC, FTC, NCUA, OCC & SEC, Interagency Guidance on Privacy Laws and Reporting

Financial Abuse of Older Adults (Sept. 23, 2013) [hereinafter Interagency Guidance], available at

https://files.consumerfinance.gov/f/201309_cfpb_elder-abuse-guidance.pdf

See Senior Safe Act, 12 U.S.C. § 3423 (2018).

See Nat’l Adult Protective Services Ass’n, Get Help, https://www.napsa-now.org/get-help/how-aps-helps/ (last

visited June 26, 2019) (“Adult Protective Services (APS) is a social services program provided by state and/or local

governments nationwide serving older adults and adults with disabilities who are in need of assistance”). If APS

finds that a person has experienced or is at risk of experiencing financial exploitation, APS can decide what services,

if any, are necessary for the vulnerable adult’s safety or well-being and recommend a service plan.

Recommendations, supra note 2, at 3.4.2. Since the release of its 2016 Recommendations, the CFPB has reviewed

its list of states where financial institutions are mandatory reporters and has removed Illinois and Washington from

5 CONSUMER FINANCIAL PROTECTION BUREAU

financial institutions determine whether and when state law mandates reporting by the

institution. Under state mandatory reporting laws, proof of EFE is normally not required and a

reasonable suspicion of EFE triggers a duty to report.

As of April 2019, 26 states and the

District of Columbia mandate reporting of suspected EFE by financial institutions or specified

financial professionals.

This update includes a statutory chart to identify state reporting

requirements. See Appendix A for a chart of state statutes involving mandatory reporting related

to EFE and the role of financial institutions in reporting it.

Since the CFPB published its 2016 Recommendations, one state added a broad mandatory

reporting requirement for financial professionals and financial institution personnel (including

banks and credit unions):

Ohio

Effective September 29, 2018, Ohio mandates that employees of banks, savings banks, savings

and loan associations, or credit unions, in addition to other listed financial professionals, report

suspected financial exploitation.

the list. Illinois only mandates reporting by “A professional or professional's delegate while engaged in . . . any of the

occupations required to be licensed under . . . the Illinois Public Accounting Act” and does not mandate reporting by

other financial staff or institutions. 320 Ill. Comp. Stat. § 20/4; 320 Ill. Comp. Stat. § 20/2. Washington only

mandates reporting when a financial institution holds a transaction due to suspected EFE. Wash. Rev. Code §§

74.34.020(17); 74.34.035(6); 74.34.215.

See, e.g., Fla. Stat. § 415.1034(1)(a) (“Bank, savings and loan, or credit union officer, trustee, or employee . . . knows,

or has reasonable cause to suspect”); Ga. Code Ann. § 30-5-4(a)(1)(B) (“any employee of a financial institution . . .

having reasonable cause to believe . . .”).

See Ariz. Rev. Stat. Ann. § 46-454; Ark. Code Ann. § 12-12-1708; Cal. Welf. & Inst. Code § 15630.1; Colo. Rev. Stat. §

18-6.5-108; Del. Code Ann. 31 § 3910; D.C. Code § 7-1903; Fla. Stat. § 415.1034; Ga. Code Ann. § 30-5-4; Haw. Rev.

Stat. § 412:3-114.5; Ind. Code Ann. § 12-10-3-9; Kan. Stat. Ann. § 39-1431; Ky. Rev. Stat. Ann. § 209.030; La. Rev.

Stat. Ann. § 15:1504; Md. Fin. Inst. Code § 1-306; Miss. Code Ann. § 43-47-7; Nev. Rev. Stat. § 657.290; N.H. Rev.

Stat. Ann. § 161-F:46; N.M. Stat. Ann. § 27-7-30; N.C. Gen Stat. § 108A-102; Ohio Rev. Code. Ann. § 5101.63; Okla.

Stat. Ann. §43A-10-104; R.I. Gen. Laws Ann. § 42-66-8; S.C. Code Ann. § 43-35-25; Tenn. Code Ann. § 71-6-103;

Tex. Hum. Res. Code Ann. § 48.051; Utah Code Ann. § 62A-3-305; Wyo. Stat. Ann. § 35-20-103. See Appendix A for

a chart of state statutes involving mandatory reporting of suspected EFE by financial institutions.

Ohio Rev. Code. Ann. § 5101.63(A)(2)(z)-(ee) (“(z) An individual who holds a certificate issued under Chapter 4701

of the Revised Code as a certified public accountant or is registered under that chapter as a public accountant; (aa)

An individual licensed under Chapter 4735. of the Revised Code as a real estate broker or real estate salesperson;

(bb) An individual appointed and commissioned under section 147.01 of the Revised Code as a notary public; (cc)

An employee of a bank, savings bank, savings and loan association, or credit union organized under the laws of this

state, another state, or the United States; (dd) A dealer, investment adviser, sales person, or investment advisor

representative licensed under Chapter 1707. of the Revised Code; (ee) A financial planner accredited by a national

accreditation agency”).

6 CONSUMER FINANCIAL PROTECTION BUREAU

2.1.2 State laws authorizing delays in disbursing funds

Since 2016, a substantial number of states have enacted legislation based on a Model Act

adopted by the North American Securities Administrators Association (“NASAA”) that includes

a provision permitting delayed disbursements of funds when the financial institution believes

that financial exploitation may occur, with accompanying responsibilities.

These statutes

generally provide timelines for transaction holds and provide immunity for institutions and

employees who take the proactive steps of withholding transactions and reporting suspected

financial abuse to specified authorities.

These statutes generally require financial institutions

to report suspected financial exploitation if they choose to hold a transaction. Most of these

statutes apply only to broker/dealers, financial advisers and others dealing in securities.

However, several states have included depository institutions such as banks and credit unions

among the institutions and qualified individuals that may hold transactions.

These states

include Delaware,

Kentucky,

Tennessee,

Texas,

Virginia,

and Washington.

In all of

The North American Securities Administrators Association (NASAA) Model Act provides immunity from

administrative or civil liability for delaying disbursements from an account if the broker-dealer, investment adviser,

or qualified individual reasonably believes “that the requested disbursement may result in financial exploitation of

an eligible adult” and follows the steps laid out in the Model Act. See NASAA, NASAA Model Legislation or

Regulation to Protect Vulnerable Adults from Financial Exploitation, § 7(1)(a) (adopted Jan. 22, 2016, updated

2019), available at

http://serveourseniors.org/wp-content/uploads/2015/11/NASAA-Model-Seniors-Act-adopted-

Jan-22-2016.pdf.

Additionally, FINRA’s Rule 2165 permits FINRA members such as broker/dealers and investment advisors to

“place a temporary hold on a disbursement of funds or securities from the Account of a Specified Adult if: (A) The

member reasonably believes that financial exploitation of the Specified Adult has occurred, is occurring, has been

attempted, or will be attempted.” FINRA Rule 2165: Financial Exploitation of Specified Adults, 82 Fed. Reg. 10059

(Feb. 9, 2017), available at

https://www.finra.org/sites/default/files/rule_filing_file/SR-FINRA-2016-039-

approval-order.pdf.

Ala. Code § 8-6-176(a); Alaska Stat. § 45.56.430(d); Ark. Code Ann. § 23-42-309(c)(1); Colo. Rev. Stat. § 11-51-

1005(1); Ind. Code §§ 23-19-4.1-5, 23-19-4.1-7(a); La. Rev. Stat. § 51:735(a); 32 Me. Rev. Stat. Ann. § 16806(1)

(effective Sept. 19, 2019); Md. Corps. & Ass’ns § 11-307(c)(1); Minn. Stat. § 45A.06(a); Miss. Code Ann. § 75-71-

413(b); Mont. Code Ann. § 30-10-342(1); N.D. Cent. Code § 10-04-08.5(5)(a); N.M. Stat. Ann. § 58-13D-5(A); Or.

Rev. Stat. § 59.495(1); Utah Code Ann. § 61-1-204(1). Vermont adopted a similar provision in its securities

regulations. Vt. Sec. Reg. § 8-5(e).

Delaware and Washington enacted their laws prior to the release of the NASAA Model Act, while Tennessee and

Texas enacted their laws subsequent to the Model Act.

Del. Code 31 §§ 3902(13), 3910.

Ky. Rev. Stat. § 365.245.

Tenn. Code. Ann. § 45-2-1203(d).

Tex. Fin. Code Ann. §§ 277.001(3), 280.004, 280.005.

Va. Code Ann. § 63.2-1606(L) (effective July 1, 2019).

Wash. Rev. Code § 74.34.215.

7 CONSUMER FINANCIAL PROTECTION BUREAU

these states but Washington, reporting of EFE is already mandatory. The Delaware, Kentucky,

Tennessee, Texas, and Washington statutes also include an additional statutory provision that

mandates reporting, sometimes within a certain time period, to specific authorities if the

financial institution wishes to delay or refuse a transaction related to EFE.

See Appendix B for

a chart of state statutes involving transaction holds related to EFE.

State policymakers and key stakeholders in other states are exploring changes to enable

depository institutions to delay disbursements if they suspect that an older account holder has

been or will be defrauded. These proposed or actual legislative changes suggest that

policymakers seek additional ways to prevent EFE entirely or to limit the losses that older adults

may incur when targeted.

2.1.3 The Senior Safe Act, a federal statute enacted in

2018, encourages reporting of EFE and provides

immunity in specified situations

The federal Senior Safe Act, effective June 2018, provides that financial institutions are not

liable for disclosing suspected EFE to covered agencies

if the institution has trained its

employees on identifying EFE.

The Senior Safe Act applies to depository institutions, credit

unions, investment advisers, broker-dealers, insurance companies, insurance agencies,

insurance advisers and transfer agents.

In addition to institutional immunity, the Senior Safe

Act provides individual immunity for those who “served as a supervisor or in a compliance or

legal function (including as a Bank Secrecy Act officer) for, or, in the case of a registered

representative, investment adviser representative, or insurance producer, was affiliated or

associated with, a covered financial institution.”

To establish immunity, the report must be

Del. Code 31 § 3910(c); Ky. Rev. Stat. § 365.245(3)(a)(1); Tenn. Code. Ann. § 45-2-1203(c)(2); Tex. Fin. Code Ann. §

280.004(a); Wash. Rev. Code § 74.34.215(4)(b). In Virginia, “financial institution staff may refuse to execute a

transaction, may delay a transaction, or may refuse to disburse funds if the financial institution staff (i) believes in

good faith that the transaction or disbursement may involve, facilitate, result in, or contribute to the financial

exploitation of an adult or (ii) makes, or has actual knowledge that another person has made, a report to the local

department or adult protective services hotline stating a good faith belief that the transaction or disbursement may

involve, facilitate, result in, or contribute to the financial exploitation of an adult.” Va. Code Ann. § 63.2-1606(L)

(effective July 1, 2019).

See Senior Safe Act, supra note 6 at § 3423(a)(1)(D).

Id. at § 3423(a)(2)(B).

Id. at § 3423(a)(1)(D).

Id. at § 3423(a)(2)(B)(i).

8 CONSUMER FINANCIAL PROTECTION BUREAU

made in good faith and with reasonable care and the employee must have received appropriate

training on how to identify and report elder exploitation.

The training must:

(ii) instruct any individual attending the training on how to identify and report the

suspected exploitation of a senior citizen internally and, as appropriate, to

government officials or law enforcement authorities, including common signs that

indicate the financial exploitation of a senior citizen;

(iii) discuss the need to protect the privacy and respect the integrity of each

individual customer of the covered financial institution; and

(iv) be appropriate to the job responsibilities of the individual attending the

training.

The Senior Safe Act does not mandate either reporting or training, but does make the safe

harbor contingent on the financial institution having provided training to employees. It does not

preempt state law unless the Senior Safe Act provides greater protection against liability to a

covered individual or institution.

In its 2016 Recommendations, the CFPB recommended that financial institutions establish

clear, efficient training protocols to enhance their capacity to detect EFE.

The CFPB

recommendations stress that training curricula should include indicators of potential EFE, and

the CFPB compiled a list of warning signs in an appendix.

The CFPB recommended that

training programs describe what actions to take when employees detect problems. The CFPB

also recommended that training describe the roles and responsibilities of management, frontline

staff, and other employees to reduce ambiguity and promote efficient and timely action when

staff suspect or observe EFE.

Id. at § 3423(a)(2)(B)(ii).

Id. at § 3423(b)(2)(A)(ii)-(iv).

Id. at § 3423(c).

Recommendations, supra note 2, at 3.2.

Id. at 3.2.1.

Id. at 3.2.2.

9 CONSUMER FINANCIAL PROTECTION BUREAU

2.1.4 File Suspicious Activity Reports (“SARs”) when the

financial institution suspects elder financial

exploitation

In its 2016 Recommendations, the CFPB recommended that financial institutions file SARs

when the financial institution suspects EFE.

The CFPB highlighted FinCEN’s 2011 Advisory

that noted SARs are a valuable avenue for financial institutions to report financial exploitation

of older adults.

In February 2019, the CFPB published a research report, Suspicious Activity Reports on Elder

Financial Exploitation: Issues and Trends.

The CFPB analyzed SARs filed by a broad

spectrum of financial institution types from 2013 to 2017 regarding suspected EFE. Over

180,000 SARs describing suspicious activities targeting older adults were filed during this

timeframe.

SAR filings quadrupled from 2013 to 2017, but these SARs likely represent a tiny

fraction of actual incidents.

During the study time period, SAR filings by depository

institutions increased each year.

EFE SARs indicate that EFE is widespread and damaging,

with an average loss of $41,800 among adults over age 70 who sustained a loss.

While financial institutions are filing an increasing number of EFE SARs, in most cases the

SARs do not indicate that the financial institutions are reporting EFE directly to law

enforcement or APS. Less than one-third of EFE SARs (28 percent) state that the filing

institution reported the activity directly to APS, law enforcement or other authorities.

If the

financial institution is not reporting to APS, law enforcement or other first responders, this may

be a missed opportunity to strengthen prevention and response. More reporting to the relevant

law enforcement agencies can increase investigation and prosecution.

Many financial

institutions communicate with local law enforcement entities, which assist them in

understanding when, where, and how to report. Robust reporting to APS can increase the

likelihood that victims will receive appropriate services.

Id. at 3.4.3.

See FinCEN, Advisory to Financial Institutions on Filing Suspicious Activity Reports Regarding Elder Financial

Exploitation (Feb. 22, 2011), https://www.fincen.gov/resources/advisories/fincen-advisory-fin-2011-a003

See SARS Report, supra note 4.

Id. at 1.0.

Id.

Id., see Appendix B.

Id. at 4.0.

Id. at 5.0 (see fig. 14).

Id. at 5.0.

10 CONSUMER FINANCIAL PROTECTION BUREAU

2.2 Expedite responses when APS, law

enforcement, and other government

entities investigate reports of elder

financial exploitation and request

documentation, in accordance with

relevant laws

In its 2016 Advisory, the CFPB recommended that financial institutions expedite

documentation requests and provide financial records at no charge to APS, law enforcement or

other investigatory agencies in EFE cases.

This is particularly critical because APS agencies

often lack financial resources and having to pay to obtain financial records can impede APS’s

ability to respond to elder fraud.

Because financial exploitation often continues over several

months,

a timely response to a records request can be an important step in preventing

additional losses to an older account holder.

Some states have enacted laws mandating that financial institutions produce financial records

relevant to suspected EFE to APS and law enforcement when requested.

Since 2016, Kentucky,

Tennessee, Texas, and Utah have all enacted new laws regarding the production of records to

investigatory agencies.

Kentucky and Texas now mandate that financial institutions provide

records relevant to suspected EFE to APS and law enforcement, either as part of a report or

referral or upon request pursuant to an investigation.

In Tennessee and Utah, financial

Advisory, supra note 1, at 4.0.

U.S. Government Accountability Office, Report to the Chairman, Senate Special Comm. On Aging, Elder Justice,

Stronger Federal Leadership Could Enhance National Response to Elder Abuse 18 (Mar. 2011), available at

https://www.gao.gov/assets/320/316224.pdf

SARs Report, supra note 4, at 5.0.

For example, the Texas statute reads: “A financial institution shall provide, on request, access to or copies of

records relevant to the suspected financial exploitation of a vulnerable adult to the department, a law enforcement

agency, or a prosecuting attorney's office, either as part of a report . . . or at the request of the department, law

enforcement agency, or prosecuting attorney's office in accordance with an investigation.” Tex. Fin. Code Ann. §

280.006. Other states have enacted similar laws governing the release of financial records to APS or law

enforcement when EFE is suspected by a financial institution. See, e.g., 320 Ill. Comp. Stat. 20/13(a-5); Ky. Rev.

Stat. § 365.245(5)(a); Minn. Stat. Ann. § 626.557(5)(a).

Ky. Rev. Stat. § 365.245(5)(a); Tenn. Code Ann. § 45-10-119; Tex. Fin. Code Ann. § 280.006; Utah Code Ann. §

62A-3-303.

Ky. Rev. Stat. § 365.245(5)(a); Tex. Fin. Code Ann. § 280.006.

11 CONSUMER FINANCIAL PROTECTION BUREAU

institutions must provide records to authorized investigatory agencies if the agency serves a

subpoena.

In a few states, it is explicitly permitted—but not mandatory—for financial

institutions to disclose records related to suspected EFE.

See Appendix C for a chart of all state

statutes involving the disclosure of financial records related to EFE.

State statutes also differ regarding the specific agencies to which financial institutions must

disclose records.

2.2.1 Expedite the provision of SAR supporting

documentation to appropriate law enforcement or

supervisory agencies

FinCEN advises financial institutions to provide SAR information and supporting

documentation to authorized investigatory agencies: “Financial institutions must provide all

documentation supporting the filing of a SAR upon request by FinCEN or an appropriate law

enforcement or supervisory agency.”

“Disclosure of SARs to appropriate law enforcement and

supervisory agencies is protected by the safe harbor provisions applicable to both voluntary and

mandatory suspicious activity reporting by financial institutions.”

Tenn. Code Ann. § 45-10-119; Utah Code Ann. § 62A-3-303(8)(b).

Md. Fin. Inst. Code § 1-306 (“A fiduciary institution or an officer, employee, agent, or director of a fiduciary

institution may disclose financial records and any other information relating to a customer of the fiduciary

institution if the fiduciary institution or its officer, employee, agent, or director: (1) Believes that the customer has

been subjected to financial exploitation; and (2) Makes the disclosure in a report of financial exploitation to the

adult protective services program in a local department of social services”); Rev. Code Wash. § 74.34.220(4) (“A

financial institution may provide access to or copies of records that are relevant to suspected financial exploitation

or attempted financial exploitation of a vulnerable adult to the department, law enforcement, or the prosecuting

attorney's office, either as part of a referral to the department, law enforcement, or the prosecuting attorney's office,

or upon request of the department, law enforcement, or the prosecuting attorney's office pursuant to an

investigation”).

See, e.g., 320 Ill. Comp. Stat. § 20/13(a-5) (“A representative of the Department or a designated provider agency

that is actively involved in an abuse, neglect, financial exploitation, or self-neglect investigation under this Act shall

be allowed access to the financial records . . . of the eligible adult which are in the possession of any individual,

financial institution . . . or other facility if necessary to complete the investigation mandated by this Act”); Ky. Rev.

Stat. § 365.245(5)(a) (Financial institutions “shall provide access to or copies of records that are relevant to the

suspected or attempted financial exploitation of a specified adult to agencies charged with administering state adult

protective services laws and to law enforcement, either as part of a referral to the agency or to law enforcement, or

upon request of the agency or law enforcement pursuant to an investigation.”).

FinCEN, Guidance: Suspicious Activity Report Supporting Documentation, FIN-2007-G003, 1 (Jun. 13, 2007),

available at https://www.fincen.gov/sites/default/files/shared/Supporting_Documentation_Guidance.pdf

Id. at 2.

12 CONSUMER FINANCIAL PROTECTION BUREAU

The CFPB recommends that financial institutions work with their legal counsel to expedite their

responses to requests for SAR supporting documentation by law enforcement and other

agencies with authority to access SARs.

13 CONSUMER FINANCIAL PROTECTION BUREAU

3. Conclusion

Timely reporting of suspected EFE remains critically important and can lead to effective

responses and limitation of losses. The CFPB’s research underscores the prevalence of EFE and

the devastating financial harm that it is causing nationwide. Legislative trends suggest that

policymakers are seeking ways to increase and enhance reporting of suspected EFE to

government entities that can help victims or take action against perpetrators. Policymakers are

also providing incentives to train financial institution staff on recognizing and reporting EFE,

and, in some states, enabling them to delay or refuse disbursements when they believe financial

exploitation of an older adult has occurred or will occur. The CFPB provides this update to assist

financial institutions in continuing to play a vital role in preventing and responding to elder

financial abuse.

14 CONSUMER FINANCIAL PROTECTION BUREAU

APPENDIX A: MANDATORY REPORTING OF ELDER

FINANCIAL EXPLOITATION BY FINANCIAL

INSTITUTIONS

TABLE 1: STATES MANDATING REPORTING OF ELDER FINANCIAL EXPLOITATION BY FINANCIAL

INSTITUTIONS AND/OR SPECIFIED FINANCIAL PROFESSIONALS

State Mandatory

Reporting

Statute

Covered Persons

or Individuals

Definition of "Financial Institution," where

applicable

Arizona Ariz. Rev. Stat.

Ann. § 46-454

Ariz. Rev. Stat. Ann. § 46-454(B):

“An attorney, accountant, trustee,

guardian, conservator or other

person who has responsibility for

preparing the tax records of a

vulnerable adult or a person who has

responsibility for any other action

concerning the use or preservation

of the vulnerable adult's property”

Arkansas Ark. Code Ann.

§ 12-12-1708

Ark. Code Ann. § 12-12-

1708(a)(1)(U): “An employee of a

bank or other financial institution”

California Cal. Welf. &

Inst. Code §

15630.1

Cal. Welf. & Inst. Code §

15630.1(a): “All officers and

employees of financial institutions”

Cal. Welf. & Inst. Code § 15630.1(b): “As

used in this section, the term ‘financial

institution’ means any of the following: (1) A

depository institution, as defined in Section

3(c) of the Federal Deposit Insurance Act (12

U.S.C. Sec. 1813(c)). (2) An institution-

affiliated party, as defined in Section 3(u) of

the Federal Deposit Insurance Act (12 U.S.C.

Sec. 1813(u)). (3) A federal credit union or

state credit union, as defined in Section 101

of the Federal Credit Union Act (12 U.S.C.

Sec. 1752), including, but not limited to, an

institution-affiliated party of a credit union, as

defined in Section 206(r) of the Federal

Credit Union Act (12 U.S.C. Sec. 1786(r)).”

Under state mandatory reporting laws, proof of EFE is normally not required and a reasonable suspicion of EFE

triggers a duty to report. See, e.g., Fla. Stat. § 415.1034(1)(a) (“Bank, savings and loan, or credit union officer,

trustee, or employee . . . knows, or has reasonable cause to suspect”); Ga. Code Ann. § 30-5-4(a)(1)(B) (“any

employee of a financial institution . . . having reasonable cause to believe . . .”).

15 CONSUMER FINANCIAL PROTECTION BUREAU

State Mandatory

Reporting

Statute

Covered Persons

or Individuals

Definition of "Financial Institution," where

applicable

Colorado Colo. Rev.

Stat. § 18-6.5-

108

Colo. Rev. Stat. § 18-6.5-

108(1)(b)(XXII): “Personnel of

banks, savings and loan

associations, credit unions, and

other lending or financial institutions”

Delaware Del. Code Ann.

31 § 3910

Del. Code Ann. 31 § 3910(a)-(c):

Any person, including an “employee

of a financial institution who has

direct contact with an elderly person”

District of

Columbia

D.C. Code § 7-

1903

D.C. Code § 7-1903(a)(1): A “bank

manager” or “financial manager”

Florida Fla. Stat. §

415.1034

Fla. Stat. § 415.1034(1)(a): Any

person, including a “Bank, savings

and loan, or credit union officer,

trustee, or employee”

Georgia Ga. Code Ann.

§ 30-5-4

Ga. Code Ann. § 30-5-4(a)(1)(B):

“Any employee of a financial

institution or investment company”

Ga. Code Ann. § 30-5-3; Ga. Code Ann. §7-

1-4(21): “‘Financial institution’ means: (A) A

bank; (B) A trust company; (C) Reserved; (D)

A credit union; (E) A corporation licensed to

engage in the business of selling payment

instruments in this state on April 1, 1975, or

so licensed pursuant to Article 4 of this

chapter”

Hawaii Haw. Rev. Stat.

§ 412:3-114.5

Haw. Rev. Stat. § 412:3-114.5(a):

“Financial institution”

Haw. Rev. Stat. § 412:1-109: “‘Hawaii

financial institution’ means: (1) A corporation

or credit union that holds a charter or license

under this chapter or under prior Hawaii law,

authorizing it to accept deposits, to make

loans in excess of the rates permitted in

chapter 478, or to engage in the business of

a trust company; or (2) A resulting bank as

defined in article 12, and includes a

corporation or credit union existing and

chartered as a Hawaii financial institution or

licensed to transact business in this State on

July 1, 1993. A Hawaii financial institution

may be a bank, resulting bank as defined in

article 12, savings bank, savings and loan

association, depository financial services

loan company, nondepository financial

services loan company, trust company, credit

union, or intra-Pacific bank.” Statute also

16 CONSUMER FINANCIAL PROTECTION BUREAU

State Mandatory

Reporting

Statute

Covered Persons

or Individuals

Definition of "Financial Institution," where

applicable

covers a national banking association,

federal savings bank, federal savings and

loan association or federal credit union.

Indiana Ind. Code Ann.

§ 12-10-3-9

Ind. Code Ann. § 12-10-3-9(a): Any

individual

Kansas Kan. Stat. Ann.

§ 39-1431

Kan. Stat. Ann. § 39-1431(a): “A

bank trust officer or any other

officers of financial institutions”

Kan. Stat. Ann. § 39-1401(q): “‘Financial

institution’ means any bank, trust company,

escrow company, finance company, saving

institution or credit union, chartered and

supervised under state or federal law.”

Kentucky Ky. Rev. Stat.

Ann. § 209.030

Ky. Rev. Stat. Ann. § 209.030(2):

“Any person”

Louisiana La. Rev. Stat.

Ann. § 15:1504

La. Rev. Stat. Ann. § 15:1504(A):

“Any person”

Maryland Md. Fin. Inst.

Code § 1-306

Md. Fin. Inst. Code § 1-306(d)(1):

“A fiduciary institution”

Md. Fin. Inst. Code § 1-301(b): “‘Fiduciary

institution’ means: (i) A national banking

association; (ii) A State banking institution;

(iii) An other-state bank that maintains a

branch in this State; (iv) A credit union that is

organized under the laws of this State or of

the United States; (v) Any other organization

that is organized under the banking laws of

this State and subject to the supervision of

the Commissioner; or (vi) A savings and loan

association that is organized under the laws

of this State or of the United States.”

Mississippi Miss. Code

Ann. § 43-47-7

Miss. Code Ann. § 43-47-

7(1)(a)(vii): “Accountant,

stockbroker, financial advisor or

consultant, insurance agent or

consultant, investment advisor or

consultant, financial planner, or any

officer or employee of a bank,

savings and loan, credit union or any

other financial service provider”

Nevada Nev. Rev. Stat.

§ 657.290

Nev. Rev. Stat. § 657.290(1)-(2):

“Financial institution”

Nev. Rev. Stat. § 657.160: “‘Financial

institution’ means a depository institution or

any other institution regulated pursuant to

this title. The term includes, without limitation,

a holding company, affiliate or subsidiary of

such an institution.”

17 CONSUMER FINANCIAL PROTECTION BUREAU

State Mandatory

Reporting

Statute

Covered Persons

or Individuals

Definition of "Financial Institution," where

applicable

New

Hampshire

N.H. Rev. Stat.

Ann. § 161-

F:46

N.H. Rev. Stat. Ann. § 161-F:46:

“Any person”

New

Mexico

N.M. Stat. Ann.

§ 27-7-30

N.M. Stat. Ann. § 27-7-30(A): “Any

person, including financial

institutions”

North

Carolina

N.C. Gen Stat.

§ 108A-102;

108A-115

N.C. Gen Stat. § 108A-102(A): “Any

person”

N.C. Gen Stat. § 108A-115(a): “Any

financial institution, or officer or

employee thereof”

Ohio Ohio Rev.

Code. Ann. §

5101.63

Ohio Rev. Code. Ann. §

5101.63(A)(2)(z)-(ee): “(z) An

individual who holds a certificate

issued under Chapter 4701 of the

Revised Code as a certified public

accountant or is registered under

that chapter as a public accountant;

(aa) An individual licensed under

Chapter 4735 of the Revised Code

as a real estate broker or real estate

salesperson; (bb) An individual

appointed and commissioned under

section 147.01 of the Revised Code

as a notary public; (cc) An employee

of a bank, savings bank, savings and

loan association, or credit union

organized under the laws of this

state, another state, or the United

States; (dd) A dealer, investment

adviser, sales person, or investment

advisor representative licensed

under Chapter 1707. of the Revised

Code; (ee) A financial planner

accredited by a national

accreditation agency”

Oklahoma Okla. Stat.

Ann. § 43A-10-

104

Okla. Stat. Ann. § 43A-10-

104v1(A)(1): “Any person”

Okla. Stat. Ann. § 43A-10-

104v2(A): “Any person”

Rhode

Island

R.I. Gen. Laws

Ann. § 42-66-8

R.I. Gen. Laws Ann. § 42-66-8:

“Any person”

18 CONSUMER FINANCIAL PROTECTION BUREAU

State Mandatory

Reporting

Statute

Covered Persons

or Individuals

Definition of "Financial Institution," where

applicable

South

Carolina

S.C. Code Ann.

§ 43-35-25

S.C. Code Ann. § 43-35-25(A): “Any

other person who has actual

knowledge that a vulnerable adult

has been abused, neglected, or

exploited shall report the incident”

Tennessee Tenn. Code

Ann. § 71-6-

103

Tenn. Code Ann. § 71-6-103(b)(1):

“Any person”

Texas Tex. Hum. Res.

Code Ann. §

48.051; Tex.

Fin.

Code Ann.

§ 280.002

Tex. Hum. Res. Code Ann. §

48.051(a): Any person

Tex. Fin. Code Ann. § 280.002(b):

“Financial institution”

Utah Utah Code

Ann. § 62A-3-

305

Utah Code Ann. § 62A-3-305(1):

Any person

Wyoming Wyo. Stat. Ann.

§ 35-20-103

Wyo. Stat. Ann. § 35-20-103(a):

“Any person or agency”

19 CONSUMER FINANCIAL PROTECTION BUREAU

APPENDIX B: MANDATORY REPORTING OF ELDER

FINANCIAL EXPLOITATION WHEN A FINANCIAL

INSTITUTION HOLDS A TRANSACTION OR DELAYS A

DISBURSEMENT

TABLE 2: STATES MANDATING REPORTING OF SUSPECTED ELDER FINANCIAL EXPLOITATION TO

ADULT PROTECTIVE SERVICES AND/OR LAW ENFORCEMENT WHEN A FINANCIAL

INSTITUTION HOLDS A TRANSACTION OR DELAYS A DISBURSEMENT OF FUNDS

State Statute Effective date

of statutory

section

authorizing

transaction

holds

Text

Delaware Del. Code

Ann. 31 §

3910

2014 Del. Code Ann. 31 § 3910(c): A financial institution with a

reasonable cause to suspect EFE “shall be empowered to place a

hold on a proposed transaction for a period of 10 business days

following the filing of the report.” The financial institution must report

“by the earlier of the date on which the financial institution

completes its investigation or 5 business days after the bank

identifies a suspicious transaction.”

Kentucky Ky. Rev. Stat.

§§ 365.245;

209.030

2018 Ky. Rev. Stat. § 365.245(3)(a): “A qualified person may place a

temporary hold on a transaction on or [sic] a disbursement from an

account of a specified adult, or an account on which a specified

adult is a beneficiary, if: 1. The qualified person fulfills any reporting

obligations under KRS 209.030. Nothing in this subsection shall be

read to expand any of the requirements of KRS 209.030; 2. The

qualified person reasonably believes that financial exploitation of a

specified adult has occurred, is occurring, has been attempted, or

will be attempted.. ..”

Ky. Rev. Stat. §209.030(3): “An oral or written report shall be made

immediately to the cabinet upon knowledge of suspected abuse,

neglect, or exploitation of an adult.”

Tennessee Tenn. Code.

Ann. §§ 45-2-

2017 Tenn. Code. Ann. § 45-2-1203(c): “A financial service provider that

refuses a financial transaction or holds a financial transaction

based on reasonable cause to suspect that financial exploitation

In Virginia, “financial institution staff may refuse to execute a transaction, may delay a transaction, or may refuse

to disburse funds if the financial institution staff (i) believes in good faith that the transaction or disbursement may

involve, facilitate, result in, or contribute to the financial exploitation of an adult or (ii) makes, or has actual

knowledge that another person has made, a report to the local department or adult protective services hotline

stating a good faith belief that the transaction or disbursement may involve, facilitate, result in, or contribute to the

financial exploitation of an adult.” Va. Code Ann. § 63.2-1606(L) (effective July 1, 2019).

20 CONSUMER FINANCIAL PROTECTION BUREAU

State Statute Effective date

of statutory

section

authorizing

transaction

holds

Text

1203; 71-6-

103

may have occurred, may have been attempted, or is being

attempted shall . . . report the incident, if it involves financial

exploitation, to the department of human services adult protective

services division, as provided in § 71-6-103.”

Tenn. Code. Ann. § 71-6-103(c): “An oral or written report shall be

made immediately to the department upon knowledge of the

occurrence of suspected abuse, neglect, or exploitation of an

adult.”

Texas Tex. Fin. Code

Ann. §§

280.002;

280.004

2017 Tex. Fin. Code Ann. § 280.004(a): “If a financial institution submits

a report of suspected financial exploitation of a vulnerable adult to

the department under Section 280.002(b), the financial institution:

(1) may place a hold on any transaction that: (A) involves an

account of the vulnerable adult; and (B) the financial institution has

cause to believe is related to the suspected financial exploitation;

and (2) must place a hold on any transaction involving an account

of the vulnerable adult if the hold is requested by the department or

a law enforcement agency.”

Note: The allowable duration of transaction holds varies by state and may also vary by situation. Please review your

state law to determine the length of time for which a financial institution may hold a transaction.

21 CONSUMER FINANCIAL PROTECTION BUREAU

APPENDIX C: DISCLOSURE OF FINANCIAL RECORDS

TO ADULT PROTECTIVE SERVICES AND/OR LAW

ENFORCEMENT

TABLE 3: STATES MANDATING DISCLOSURE OF RECORDS RELATED TO ELDER FINANCIAL

EXPLOITATION BY FINANCIAL INSTITUTIONS UPON REQUEST AND/OR AS PART OF A

REFERRAL TO ADULT PROTECTIVE SERVICES/LAW ENFORCEMENT

State Statute

Year

enacted

Text

Illinois 320 Ill.

Comp. Stat.

§ 20/13

2014 320 Ill. Comp. Stat. § 20/13(a-5): “A representative of the Department

or a designated provider agency that is actively involved in an abuse,

neglect, financial exploitation, or self-neglect investigation under this

Act shall be allowed access to the financial records . . . of the eligible

adult which are in the possession of any individual, financial institution

. . . or other facility if necessary to complete the investigation

mandated by this Act. The provider or facility shall provide such

records to the representative upon receipt of a written request and

certification from the Department or designated provider agency that

an investigation is being conducted under this Act and the records are

pertinent to the investigation.”

Kentucky Ky. Rev.

Stat. §

365.245

2018 Ky. Rev. Stat. § 365.245(5)(a): “A qualified person shall provide

access to or copies of records that are relevant to the suspected or

attempted financial exploitation of a specified adult to agencies

charged with administering state adult protective services laws and to

law enforcement, either as part of a referral to the agency or to law

enforcement, or upon request of the agency or law enforcement

pursuant to an investigation.”

Minnesota Minn. Stat.

Ann. §

626.557

2015 Minn. Stat. Ann. § 626.557(5a): “Financial institutions shall cooperate

with a lead investigative agency, law enforcement, or prosecuting

authority that is investigating maltreatment of a vulnerable adult and

comply with reasonable requests for the production of financial

records as authorized under section 13A.02, subdivision 1.”

Texas Tex. Fin.

Code Ann. §

280.006

2017 Tex. Fin. Code Ann. § 280.006: “To the extent permitted by state or

federal law, a financial institution shall provide, on request, access to

or copies of records relevant to the suspected financial exploitation of

a vulnerable adult to the department, a law enforcement agency, or a

prosecuting attorney's office, either as part of a report to the

department, law enforcement agency, or prosecuting attorney's office

Under Kentucky law, a “‘Qualified person’ means a: (1) Broker-dealer as defined in KRS 292.310; (2) Investment

adviser as defined in KRS 292.310; or (3) Financial institution.” Id.

22 CONSUMER FINANCIAL PROTECTION BUREAU

State Statute

Year

enacted

Text

or at the request of the department, law enforcement agency, or

prosecuting attorney's office in accordance with an investigation.”

Wisconsin Wis. Stat.

Ann. § 46.90

2013 Wis. Stat. Ann. § 46.90(5)(b)(6): “Any financial records of the elder

adult at risk that are maintained by a financial institution, as defined in

s. 705.01(3) . . . shall be released without informed consent in either of

the following circumstances: a. To an elder-adult-at-risk agency or

other investigative agency under this section. The financial record

holder may release financial record information by initiating contact

with the elder-adult-at-risk agency or other investigative agency

without first receiving a request for release of the information from the

elder-adult- at-risk agency or other investigative agency. b. Under a

lawful order of a court of record.”

TABLE 4: STATES MANDATING DISCLOSURE OF RECORDS RELATED TO ELDER FINANCIAL

EXPLOITATION BY FINANCIAL INSTITUTIONS UPON RECEIPT OF A SUBPOENA

State Statute

Year

enacted

Text

North

Carolina

N.C. Gen

Stat. §

108A-116

2014 N.C. Gen. Stat. § 108A-116(c): “Upon receipt of a subpoena

delivered pursuant to subsection (b) of this section identifying the

disabled adult or older adult customer or, if the subpoena is

challenged pursuant to subsection (b1) of this section, entry of a court

order upholding or modifying a subpoena, a financial institution shall

promptly provide to the head of an investigating entity, or his or her

designated agent, the financial records of a disabled adult or older

adult customer.”

Tennessee Tenn. Code

Ann. § 45-

10-119

2017 Tenn. Code Ann. § 45-10-119(a): “A financial institution shall provide

access to or copies of records that are relevant to suspected actual or

attempted financial exploitation, as defined in § 45-2-1202, in

response to an administrative subpoena that satisfies the

requirements of § 45-10-103(8) issued by the department of human

services, adult protective services as provided in § 71-6-103(j)(4)(A).

The records requested pursuant to this subsection (a) must be limited

to historical records as well as records relating to the most recent

transaction or transactions that may comprise financial exploitation not

to exceed thirty (30) calendar days prior to the first transaction that

These three states have enacted specific statutory provisions discussing subpoenas of financial records in EFE

cases. Their inclusion is not meant to suggest that financial institutions in other states are not obligated to respond

to subpoenas.

23 CONSUMER FINANCIAL PROTECTION BUREAU

State Statute

Year

enacted

Text

was reported, or thirty (30) calendar days after the last transaction that

was reported.”

Utah Utah Code

Ann. § 62A-

3-303

2017 Utah Code Ann. § 62A-3-303(8): Adult Protective Services “shall be

given access to, or provided with, written statements, documents,

exhibits, and other items related to an investigation, including private,

controlled, or protected medical or financial records of a vulnerable

adult who is the subject of an investigation if: (a) for a vulnerable adult

who has the capacity to consent, the vulnerable adult signs a release

of information; or (b) for a vulnerable adult who lacks capacity to

consent, an administrative subpoena is issued by Adult Protective

Services.”