Banks and trusts companies; prohibiting certain institutions from providing certain information to certain agents; establishing penalties. Effective date. Emergency.
Impact
If enacted, SB791 would significantly impact existing banking regulations under Oklahoma law by imposing strict rules on how financial institutions manage requests for customer information from federal agents. Institutions that violate this law would face substantial penalties, including fines of up to $10,000 for a first offense and potential loss of their operating license for subsequent offenses. This could lead to a heightened sense of confidentiality regarding customer data and reinforce consumer protections against unwarranted federal intrusion.
Summary
Senate Bill 791 is legislation proposed in Oklahoma that aims to enhance the privacy of financial information held by banks, credit unions, and other financial institutions. This bill prohibits these institutions from disclosing information regarding the financial accounts or transactions of individuals, businesses, or trusts to any federal agent or agency that makes such requests. The legislation also mandates that financial institutions notify account owners of any requests for information within two business days, detailing the request's time, the requestor, and other relevant information.
Contention
The bill's provisions could lead to debates regarding the balance between financial privacy and law enforcement needs. Proponents of the bill argue that it is a necessary measure to protect the rights and privacy of citizens against federal overreach. However, critics may raise concerns that such restrictions could hinder law enforcement investigations and complicate efforts to combat financial crimes. By clarifying the thresholds for releasing customer information, SB791 aims to set clearer standards but could also spark discussions on its implications for federal-state relationships in legal compliance.
State government; prohibiting state contracts with certain companies; requiring certification for certain companies; providing penalties; effective date.
Financial institutions; prohibiting disclosure of certain financial information; providing exceptions; providing for damages for discriminatory conduct. Effective date.
Financial institutions; creating the Oklahoma Second Amendment Financial Privacy Act; prohibiting the disclosure of certain information. Effective date.
Financial institutions; creating the Oklahoma Second Amendment Financial Privacy Act; prohibiting the disclosure of certain information. Effective date.