STOP Senior Fraud Act

This Act may be cited as the Safeguarding Transactions to Outpace Predatory Senior Fraud Act or the STOP Senior Fraud Act.
A financial institution may refuse or temporarily delay a disbursement or transaction from an account if the financial institution reasonably believes that financial exploitation has occurred, or is being attempted through such transaction or account, and the account is held by or on behalf of—
an older adult;
a vulnerable person; or
a person who has experienced financial exploitation or fraud previously in connection with the account and has reported it to the financial institution.
Any delay of a disbursement or transaction conducted under subsection (a) shall last not longer than 55 days after the date the disbursement or transaction is initially requested.
A financial institution may extend a delay under subsection (a) until up to 85 days after the date the disbursement or transaction is initially requested if the financial institution conducts an internal review that finds that facts and circumstances support the reasonable belief that financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted.
A financial institution may terminate a delay imposed on a disbursement or transaction under subsection (a) if—
the financial institution determines that financial exploitation will not take place if the transaction occurs; or
a Federal court directs the institution to release the funds.
If a financial institution refuses or delays a disbursement or transaction under subsection (a), such financial institution shall as soon as practical and without unreasonable delay after delaying or refusing such disbursement or transaction—
notify all parties authorized to transact on the account, unless the financial institution reasonably believes that these persons have engaged in, are engaging in, have attempted to engage in, or will attempt to engage in the suspected financial exploitation of the eligible adult;
notify a trusted contact identified by the owner of the account or a third party the financial institution has determined is reasonably associated with the holder of the account, if available and appropriate and not suspected of the fraud, as determined by the financial institution; and
report the suspected financial exploitation to the appropriate State and local protective services, law enforcement, and a Federal regulatory authority within two business days.
Each financial institution shall provide training to each employee of the financial institution that the financial institution has reason to expect may handle transactions with holders of accounts about—
identifying financial exploitation;
handling transactions involving older adults and vulnerable persons; and
refusing or delaying transactions under this section.
A financial institution shall not be liable to any person—
for refusing or delaying a disbursement or transaction in good faith and in compliance with this section;
for deciding not to delay, refuse, or prevent a transaction in good faith and in compliance with this section; or
for disclosing information to a trusted contact, Adult Protective Services or appropriate law enforcement in compliance with this section.
The Director of the Bureau of Consumer Financial Protection may issue such rules as the Director of the Bureau of Consumer Financial Protection determines appropriate to carry out this section.
Nothing in this section may be construed to preempt any requirement of any State or local law or regulation that is more protective of older adults, vulnerable persons or persons who have experienced financial exploitation or fraud.
In this section:
The term vulnerable person means—
a person with a physical or mental impairment that substantially limits or restricts the person’s ability to provide for their own care or protection; or
a person who has a developmental disability.
The term financial exploitation means—
the wrongful or unauthorized taking, withholding, appropriation, or use of the money, assets, or other property or the identifying information of a vulnerable person or senior adult by any person; or
an act to obtain control, through deception, intimidation, fraud, or undue influence, over the money, assets, or other property of a vulnerable person or senior adult to deprive such person of the ownership, use, benefit, or possession of the property.
The term financial institution has the meaning given the term in section 803 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The term older adult means an individual who is 62 years of age or older.
The term trusted contact means a person designated, in writing, by the holder of an account at a financial institution, who may be contacted if there is a concern about activity in account of the person.
This section shall take effect 180 days after the date of the enactment of this section.