Mass. bill would let banks delay suspicious transactions to protect vulnerable adults

Representative John J. Lawn Jr. filed a bill on Jan. 17, 2025, that would create a new Chapter 167D 1/2 in Massachusetts law to give banks and other financial institutions limited authority to delay and review transactions they reasonably suspect may be financial exploitation of vulnerable adults.

The measure defines an “eligible adult” as a person 60 years of age or older or a disabled person as defined in section 1 of chapter 19C. It allows a financial institution or a “qualified individual” — an agent, employee, or compliance or legal staff member, including staff eligible under the federal Senior Safe Act of 2018 — to notify the Commissioner of the Division of Banks and relevant adult protective services agencies when the institution reasonably believes exploitation may have occurred, been attempted, or is being attempted.

Under the bill, a financial institution may delay a disbursement or transaction if, after an internal review, it has reasonable cause to believe the transaction may result in exploitation. The institution must provide written notice of the delay to all parties authorized on the account within two business days unless a listed party is suspected of perpetrating the exploitation; it must notify the Division of Banks within two business days and report the results of its internal investigation to the commissioner within 10 business days. Any delay automatically expires when the institution determines the transaction will not result in exploitation or 21 business days after the initial delay, unless a court of competent jurisdiction grants an extension on petition by certain listed parties.

The bill requires financial institutions to provide the commissioner, adult protective services agencies, or law enforcement with access to or copies of records relevant to a suspected exploitation as part of an investigation. It specifies that those records “shall not be public records and shall not be available for public examination.”

The bill includes an immunity provision saying a financial institution or qualified individual acting in good faith and exercising reasonable care in complying with the chapter is immune from administrative or civil liability that might otherwise arise from such actions. It also states explicitly that nothing in the chapter limits the Secretary of the Commonwealth’s authority to access or examine books and records of broker-dealers or investment advisers, or to investigate potential violations of chapter 110A.

The filed document identifies the sponsor as Representative John J. Lawn Jr. (10th Middlesex) and lists the subject matter as financial services. At filing the measure is a petition to the General Court; the text does not record any committee action, votes, or enactment. Next steps would follow the legislature’s regular referral and committee process.