STATE OF NEW YORK ________________________________________________________________________ 7019 2025-2026 Regular Sessions IN ASSEMBLY March 18, 2025 ___________ Introduced by M. of A. SEAWRIGHT, ROMERO -- read once and referred to the Committee on Banks AN ACT to amend the general business law, the banking law, and the social services law, in relation to protecting eligible adults from financial exploitation The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 352-m to read as follows: 3 § 352-m. Protecting eligible adults from exploitation. 1. Definitions. 4 As used in this section the following terms shall have the following 5 meanings: 6 (a) "Adult protective services" means the division of the New York 7 city human resources administration and each county agency responsible 8 for providing adult protective services pursuant to section four hundred 9 seventy-three of the social services law. 10 (b) "Eligible adult" means an individual who is: sixty years of age or 11 older; or at least the age of eighteen and who, because of mental or 12 physical impairment, is unable to manage their own resources or protect 13 themselves from financial exploitation without assistance from others. 14 (c) "Financial exploitation" means: (i) the improper use of an eligi- 15 ble adult's funds, property, income or assets; or (ii) any act or omis- 16 sion by a person, including through the use of a power of attorney, 17 guardianship or any other authority regarding an eligible adult to: (A) 18 obtain control, through deception, intimidation, threats or undue influ- 19 ence over the eligible adult's money, assets, income or property; or 20 (B) convert the eligible adult's money, assets, income or property. 21 (d) "Law enforcement agency" means any agency, which is empowered by 22 law to make an arrest for a felony, and any agency which is authorized 23 by law to prosecute a felony and including any police officer as defined EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10910-01-5
A. 7019 2 1 by subdivision thirty-four of section 1.20 of the criminal procedure law 2 and any prosecutor. 3 (e) "Qualified individual" means any agent, investment adviser repre- 4 sentative or person who serves in a supervisory, compliance, legal, or 5 senior or vulnerable adult protection capacity for a broker-dealer or 6 investment adviser. 7 2. Notification. If a broker-dealer, investment adviser, or qualified 8 individual reasonably believes financial exploitation of an eligible 9 adult has occurred, has been attempted, or is being attempted, such 10 broker-dealer, investment adviser, or qualified individual may promptly 11 notify the adult protective services and/or law enforcement. 12 3. Application of transaction hold. (a) If a broker-dealer, invest- 13 ment adviser, or qualified individual reasonably believes that financial 14 exploitation of an eligible adult may have occurred, may have been 15 attempted, or is being attempted, then such broker-dealer, investment 16 adviser, or qualified individual may place a transaction hold on such 17 transaction. 18 (b) A broker-dealer, investment adviser, or qualified individual shall 19 hold a transaction if adult protective services or a law enforcement 20 agency notifies such broker-dealer, investment adviser, or qualified 21 individual that it reasonably believes that the transaction is the 22 subject of or related to financial exploitation of an eligible adult. 23 (c) A broker-dealer, investment adviser, or qualified individual that 24 applies a transaction hold shall: (i) provide notice of such hold, in 25 writing, to all parties authorized to transact business on the account 26 that is the subject of a transaction hold, as well as any designated 27 third party, no later than two business day after the application of the 28 transaction hold; (ii) if the transaction hold has been applied pursuant 29 to paragraph (a) of this subdivision, no later than two business days 30 after application of the transaction hold, notify adult protective 31 services and/or a law enforcement agency of the belief of financial 32 exploitation and the transaction hold; and (iii) at the request of adult 33 protective services or a law enforcement agency, provide any information 34 and documents relating to the transaction hold within three business 35 days after the request for such information or documents. 36 4. Duration of transaction hold. A transaction hold shall expire 37 fifteen business days after its application except that (i) a trans- 38 action hold may be extended for up to forty additional business days if 39 there is a continued reasonable belief of exploitation, unless sooner 40 terminated or further extended by adult protective services, law 41 enforcement, any agency of competent jurisdiction or a court of compe- 42 tent jurisdiction; (ii) if a broker-dealer, investment adviser, or qual- 43 ified individual no longer reasonably believes that a transaction is the 44 subject of or related to financial exploitation, it shall release such 45 transaction, provided that adult protective services or the law enforce- 46 ment agency that the broker-dealer, investment adviser, or qualified 47 individual has notified of such hold pursuant to subparagraph (i) of 48 paragraph (c) of subdivision three of this section does not object. 49 5. Records. A broker-dealer or investment adviser shall provide access 50 to or copies of records that are relevant to the suspected or attempted 51 financial exploitation of an eligible adult to adult protective 52 services, an agency of competent jurisdiction, and law enforcement, 53 either as part of a notification or at the request of adult protective 54 services, a law enforcement agency, or an agency of competent jurisdic- 55 tion. All records made available to adult protective services, an agency 56 of competent jurisdiction, or law enforcement shall be considered confi-
A. 7019 3 1 dential records and shall not be available for examination by the 2 public. 3 6. Trainings and written procedures. Before placing a delay on a 4 disbursement or transaction pursuant to this section, a broker-dealer, 5 investment adviser, or qualified individual must do all of the follow- 6 ing: (a) develop training policies or programs reasonably designed to 7 educate employees who perform or approve transactions on behalf of 8 customers on issues pertaining to financial exploitation of specified 9 adults; (b) conduct training for employees described in paragraph (a) of 10 this subdivision as soon as reasonably practicable and maintain a writ- 11 ten record of all trainings conducted. With respect to an individual 12 who begins employment with covered broker-dealer, investment adviser, or 13 qualified individual after July first, two thousand twenty-four, such 14 training must be conducted within one year after the date on which the 15 individual becomes employed by or affiliated or associated with the 16 covered broker-dealer, investment adviser, or qualified individual; and 17 (c) develop, maintain, and enforce written procedures regarding the 18 manner in which suspected financial exploitation is reviewed internally, 19 including, if applicable, the manner in which suspected financial 20 exploitation is required to be reported to supervisory personnel. 21 7. Immunity. A broker-dealer, investment adviser, or a qualified indi- 22 vidual shall be immune from civil and administrative liability for good 23 faith actions in relation to the application of this section. 24 8. Regulations. The attorney general may promulgate regulations to 25 effectuate the purposes of this section, including setting forth factors 26 that a broker-dealer, investment adviser, or qualified individual may 27 consider in determining whether to apply a transaction hold to a trans- 28 action pursuant to paragraph (a) of subdivision one of this section, the 29 form and manner of any notification mandated by subdivision one of this 30 section, and the implementation of training programs for a broker-deal- 31 er, investment adviser, or qualified individual relating to recognizing 32 financial exploitation. 33 9. Communication with reporters. Notwithstanding any other law to the 34 contrary, adult protective services, law enforcement or any agency of 35 competent jurisdiction may provide a general case status or final dispo- 36 sition to a broker-dealer, investment adviser, or qualified individual 37 that reported such a case to an agency. 38 10. Alteration of obligations. Absent a reasonable belief of finan- 39 cial exploitation as provided in this section, this section does not 40 otherwise alter a broker-dealer, investment adviser, or qualified indi- 41 vidual's obligations to all parties authorized to transact business on 42 an account and any trusted contact named on such account. 43 § 2. The banking law is amended by adding a new section 4-d to read as 44 follows: 45 § 4-d. Protecting eligible adults from financial exploitation. 1. 46 Definitions. As used in this section the following terms shall have the 47 following meanings: 48 (a) "Adult protective services" means the division of the New York 49 city human resources administration and each county agency responsible 50 for providing adult protective services pursuant to section four hundred 51 seventy-three of the social services law. 52 (b) "Banking institution" means any bank, trust company, savings bank, 53 savings and loan association, credit union or branch of a foreign bank- 54 ing corporation that is chartered, organized or licensed under the laws 55 of this state or any other state or the United States, and, in the ordi- 56 nary course of business offers deposit accounts in this state.
A. 7019 4 1 (c) "Financial exploitation" means: (i) the improper use of an eligi- 2 ble adult's funds, property, income or assets; or (ii) any act or omis- 3 sion by a person, including through the use of a power of attorney, 4 guardianship or any other authority regarding an eligible adult to: (A) 5 obtain control, through deception, intimidation, threats or undue influ- 6 ence over the eligible adult's money, assets, income or property; or 7 (B) convert the eligible adult's money, assets, income or property. 8 (d) "Law enforcement agency" means any agency, which is empowered by 9 law to make an arrest for a felony, and any agency which is authorized 10 by law to prosecute a felony and including any police officer as defined 11 by subdivision thirty-four of section 1.20 of the criminal procedure law 12 and any prosecutor. 13 (e) "Eligible adult" means an individual who is: sixty years of age or 14 older; or at least the age of eighteen and who, because of mental or 15 physical impairment, is unable to manage their own resources or protect 16 themselves from financial exploitation without assistance from others. 17 2. Application of transaction hold. (a) If a banking institution or 18 an employee of a banking institution reasonably believes that a finan- 19 cial exploitation of an eligible adult may have occurred, may have been 20 attempted, or is being attempted, then the banking institution may place 21 a transaction hold on such transaction. 22 (b) A banking institution shall apply a transaction hold to a trans- 23 action if adult protective services or a law enforcement agency notifies 24 the banking institution that it reasonably believes that the transaction 25 is the subject of or related to financial exploitation of an eligible 26 adult. 27 (c) A banking institution that applies a transaction hold shall: (i) 28 provide notice of such hold, in writing, to all parties authorized to 29 transact business on the account that is the subject of a transaction 30 hold, as well any designated third party, no later than two business 31 days after the application of the transaction hold; (ii) if the trans- 32 action hold has been applied pursuant to paragraph (a) of this subdivi- 33 sion, no later than two business days after application of the trans- 34 action hold, notify adult protective services and/or a law enforcement 35 agency of the belief of financial exploitation and the transaction hold; 36 and (iii) at the request of adult protective services or a law enforce- 37 ment agency, provide any information and documents relating to the tran- 38 saction hold within three business days after the request for such 39 information or documents. 40 3. Trainings and written procedures. Before placing a delay on a 41 disbursement or transaction pursuant to this section, a financial 42 institution must do all of the following: 43 (a) Develop training policies or programs reasonably designed to 44 educate employees who perform or approve transactions on behalf of 45 customers on issues pertaining to financial exploitation of specified 46 adults. 47 (b) Conduct training for employees described in paragraph (a) of this 48 subdivision as soon as reasonably practicable and maintain a written 49 record of all trainings conducted. With respect to an individual who 50 begins employment with a covered financial institution after July first, 51 two thousand twenty-four, such training must be conducted within one 52 year after the date on which the individual becomes employed by or 53 affiliated or associated with the covered financial institution. 54 (c) Develop, maintain, and enforce written procedures regarding the 55 manner in which suspected financial exploitation is reviewed internally,
A. 7019 5 1 including, if applicable, the manner in which suspected financial 2 exploitation is required to be reported to supervisory personnel. 3 4. Notification. If a banking institution reasonably believes finan- 4 cial exploitation of an eligible adult has occurred, has been attempted, 5 or is being attempted, the banking institution may promptly notify the 6 adult protective services and law enforcement. 7 5. Duration of transaction hold. A transaction hold shall expire 8 fifteen business days after its application except that (i) a trans- 9 action hold may be extended for up to forty additional business days 10 upon request if there is a continued reasonable belief of exploitation, 11 unless sooner terminated or further extended by adult protective 12 services, law enforcement, any agency of competent jurisdiction or a 13 court of competent jurisdiction; (ii) if a banking institution no longer 14 reasonably believes that a transaction is the subject of or related to 15 financial exploitation, it shall release such transaction, provided that 16 adult protective services or the law enforcement agency that the banking 17 institution has notified of such hold pursuant to subparagraph (i) of 18 paragraph (c) of subdivision two of this section does not object. 19 6. Records. A banking institution shall provide access to or copies of 20 records that are relevant to the suspected or attempted financial 21 exploitation of an eligible adult to adult protective services, an agen- 22 cy of competent jurisdiction, and law enforcement, either as part of a 23 notification or at the request of adult protective services, a law 24 enforcement agency, or an agency of competent jurisdiction. All records 25 made available to adult protective services, an agency of competent 26 jurisdiction, or law enforcement shall be considered confidential 27 records and shall not be available for examination by the public. 28 7. Regulations. The superintendent may promulgate regulations to 29 effectuate the purposes of this section, including setting forth factors 30 that a banking institution may consider in determining whether to apply 31 a transaction hold to a transaction pursuant to paragraph (a) of subdi- 32 vision two of this section, the form and manner of any notification 33 mandated by subdivision two of this section, and the implementation of 34 training programs for banking institution staff relating to recognizing 35 financial exploitation. 36 8. Immunity. A banking institution or an employee of a banking insti- 37 tution shall be immune from civil and administrative liability for good 38 faith actions in relation to the application of this section. 39 9. Communication with reporters. Notwithstanding any other law to the 40 contrary, adult protective services, law enforcement or any agency of 41 competent jurisdiction may provide a general case status or final dispo- 42 sition to a banking institution that reported such a case to an agency. 43 10. Absent a reasonable belief of financial exploitation as provided 44 in this section, this section does not otherwise alter a financial 45 institution's obligations to all parties authorized to transact business 46 on an account and any trusted contact named on such account. 47 § 3. Section 473 of the social services law is amended by adding a new 48 subdivision 5-a to read as follows: 49 5-a. Whenever a social services official, or their designee authorized 50 or required to determine the need for, or to provide or arrange for the 51 provision of protective services to adults in accordance with the 52 provisions of this title has a reason to believe that financial exploi- 53 tation of an eligible adult has occurred, has been attempted, or is 54 being attempted, the social services official or their designee must 55 report this information to the appropriate law enforcement agency and 56 notify any broker-dealer, investment adviser, or banking institution
A. 7019 6 1 involved in the relevant financial transactions of the need to hold a 2 transaction. 3 § 4. Paragraph (g) of subdivision 6 of section 473 of the social 4 services law, as added by chapter 395 of the laws of 1995, is amended to 5 read as follows: 6 (g) "Financial exploitation" means: 7 (i) the improper use of an adult's funds, property, income or 8 [resources by another individual, including but not limited to, fraud, 9 false pretenses, embezzlement, conspiracy, forgery, falsifying records, 10 coerced property transfers or denial of access to assets] assets; or 11 (ii) any act or omission by a person, including through the use of a 12 power of attorney, guardianship or any other authority regarding an 13 adult to: (A) obtain control, through deception, intimidation, threats 14 or undue influence over the adult's money, assets, income or property; 15 or (B) convert the adult's money, assets, income or property. 16 § 5. This act shall take effect on the one hundred eightieth day after 17 it shall have become a law.