Georgia House passes banking bill allowing temporary holds on suspected fraud and new rules for crypto kiosks

The Georgia House on Friday passed a broad banking and consumer-protection measure designed to curb financial scams and regulate virtual-currency kiosks. House Bill 945, a Department of Banking and Finance housekeeping bill with substantive new provisions, won final passage by a 161–5 recorded vote.

Representative Williams, presenting the committee substitute, said the bill gives "financial institutions the ability to temporarily pause suspicious transactions when they reasonably...suspect an elderly or disabled adult is being financially exploited." He described the hold as limited "only on the suspicious transaction, not on the customer's other funds, for up to 15 days." Williams added the bill would require institutions that opt in to have written policies, training and limited liability protections for staff acting in good faith.

The measure also imposes rules for so-called crypto ATMs. It would require operators to provide clear fraud warnings, full fee and pricing disclosures, receipts and daily transaction limits — $2,500 for new customers and $10,000 for existing customers — and create a 5‑day window for victims of fraud to seek a full refund from an operator, Williams said. He told members that kiosk operators currently can charge as much as 30 percent in fees and that the bill contemplates an 18 percent commission cap in the statutory language under discussion.

"This bill protects consumers, especially our seniors, and modernizes our laws for today's financial realities," Williams said. When Representative Lynn Smith asked whether the measure would have prevented a local Ponzi scheme, Williams replied, "No, ma'am. This would not have had anything to do with that," saying securities issues fall to the Secretary of State's securities division.

Members pressed over liability and the bill's optional "opt-in" protections. Representative Holcomb noted the statute uses "may" language for instituting holds and asked why the duty would not be mandatory; Williams said protections are tied to the training and opt-in framework that creates limited liability for institutions that comply. Representative Park Cannon and others expressed support for regulating the kiosks and for the consumer-safeguard elements.

Several members gave personal testimony in support. Representative Sandra Scott described a fraud attempt she experienced and said bank staff froze her account after she reported suspicious activity, calling the measure "much needed protection." The bill's other major provisions require annual registration of litigation-finance firms and give the Department of Banking and Finance enforcement authority including cease-and-desist powers for unregistered operators.

The committee substitute was adopted without objection; the House then agreed to the committee's report and passed HB 945 by recorded vote. The bill now moves to the Senate for further consideration.

Provenance: Topic introduced at SEG 1061; discussion and passage concluded at SEG 1530.

Speakers quoted or paraphrased: Representative Williams (presenter), Representative Lynn Smith, Representative Holcomb, Representative Park Cannon, Representative Sandra Scott.