Bill
HB 4767
Strengthens protections for older adults and disabled through mandatory financial-holds on suspected exploitation, expanded reporting duties, and enhanced information sharing with
Title: Aging-Financial Fraud
Purpose and intent
- This bill amends multiple statutes to strengthen protections against financial exploitation of older adults and adults with disabilities.
- It expands duties for mandated reporters in financial settings, creates new safeguards around financial transactions and information disclosures, and enhances cooperation between financial institutions and state agencies to detect and prevent financial exploitation.
- Effective date: January 1, 2027.
Key provisions and changes
1) Adult Protective Services Act (Expansion of mandated reporters; financial exploitation focus)
- Expands the list of mandated reporters to include:
- Investment advisers and investment adviser representatives
- Dealers and salespersons
- Employees of financial institutions who have direct contact with eligible adults (clients) and access to their financial information
- Mandates financial institutions to implement transactional holds if there is reasonable suspicion that a transaction or disbursement could involve financial exploitation of an eligible adult.
- Requires an internal review by the financial institution after a transactional hold, consistent with internal policies.
- Requires financial institutions to establish internal policies on identifying/reporting financial exploitation and on implementing transactional holds.
- Adds provisions on duration of initial and extended holds; requires notification to law enforcement in cases involving financial fraud outside the Act’s scope.
- Grants civil immunity to financial institutions and employees who place holds in good faith.
- Requires mandated reporter training for specified financial institution employees.
- Conforms the Illinois Securities Law, Banking Act, Savings Bank Act, Illinois Credit Union Act, and Criminal Code to align with these new requirements.
2) Confidentiality and disclosure of financial records (Banking, Savings Banks, Credit Unions)
- Amends:
- The Illinois Banking Act (Section 48.1)
- The Savings Bank Act (Section 4013)
- The Illinois Credit Union Act (Section 10)
- Updates define “financial records” broadly (covering accounts, transactions, and related information).
- Preserves standard exemptions allowing banks/savings banks/credit unions to disclose records in specified circumstances, such as:
- Internal handling, audits, regulator examinations
- Compliance with law enforcement subpoenas or warrants
- Data exchanges for due diligence, unclaimed property, tax acts, and anti-fraud activities
- Information sharing for protection against fraud or financial exploitation
- Communications with law enforcement and state agencies (including aging, DHS OIG, guardians)
- Certain disclosures related to private label credit programs
- Emphasis on protections for elderly and disabled customers; requires that disclosures in cases of suspected exploitation align with Adult Protective Services Act protections
- Adds specific procedures for notifying individuals when records are disclosed in response to subpoenas or court orders (including delivery methods and timelines).
- Maintains penalties for improper disclosure (business offenses; up to $1,000 fine) and allows banking entities to be reimbursed for costs incurred in producing records under lawful requests.
3) Medicaid/long-term care records release (Protection and consent framework)
- Adds provisions allowing banks and savings institutions to disclose financial records to the Illinois Department of Human Services or the Illinois Department of Healthcare and Family Services to aid initial or redetermination of Medicaid long-term care eligibility, provided the customer signs a detailed consent form with notarization, witnesses, and explicit scope.
- Requires form to limit disclosure to the Department and to specify timing, cost reimbursement to the bank, and protections for the customer.
- Reaffirms customer rights to disclose records directly or through a designated attorney/agent.
4) Definitions and scope (Adult Protective Services Act)
- Adds and clarifies several terms:
- Abuser, Eligible adult, Domestic living situation
- Disability categories and the definition of financial exploitation
- Mandated reporter categories and covered professionals
- Expanded coverage for adults aged 60+ and adults with disabilities living in domestic settings
- Introduces terms related to how financial exploitation is conceptualized and addressed within the reporting framework.
Affected entities and individuals
- Elders and adults with disabilities (eligible adults) who are at risk of or experiencing financial exploitation.
- Mandated reporters in financial sectors (investment advisers, dealers, bank/savings bank/credit union staff with client access).
- Financial institutions (banks, savings banks, and credit unions) and their employees.
- State agencies: Department on Aging, Department of Human Services, Department of Healthcare and Family Services.
- Law enforcement and guardians involved in protective investigations.
- Private sector entities handling private label credit programs (retailers and service providers involved in such programs).
Procedural and timeline aspects
- New reporting and holds become effective for transactional holds and mandated reporting training; internal policies must be established.
- Public-facing consent provisions for Medicaid long-term care eligibility changes include notarization, witnesses, timing, and cost reimbursement.
- The Act introduces a 2027 effective date, with broader implementation likely tied to regulatory rulemaking and bank policy updates.
Overall impact
- Strengthens prevention and detection of financial exploitation of older adults and younger adults with disabilities.
- Increases responsibilities for financial institutions to monitor, hold, and report suspicious activity.
- Expands lawful avenues for accessing and sharing financial information to support protective services while maintaining privacy protections and due process.
- Aims to modernize consent and data-sharing practices across several financial institutions and state agencies to safeguard vulnerable populations.
Compiled from official sources — confirm details with the bill’s official record.
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