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Bill

Bill

A 4374

Requires, or authorizes, as appropriate, financial institutions to take certain action upon certain financial transactions made by vulnerable or senior customer.

2026-2027 Regular Session Introduced by Clinton Calabrese

The bill requires banks to share records with protective services and may delay transactions to prevent exploitable activity of seniors or vulnerable customers.

Introduced, Referred to Assembly Financial Institutions and Insurance Committee
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Bill Summary · A 4374

Summary of Bill A4374 (NJ, 222nd Legislature)

Purpose and Intent

  • To enhance protections for vulnerable and senior customers in financial institutions.
  • Requires financial institutions to take certain actions related to suspected financial exploitation, including mandatory sharing of records with protective services and potential delays of transactions to prevent exploitation.
  • Builds on and amends the existing law (P.L.1998, c.121) governing when records can be released and how banks may respond to suspected exploitation.

Key Provisions

  1. Definitions (amendment to P.L.1998, c.121)

  2. Clarifies terms used in the act:

    • Account: a deposit or fiduciary account in the senior or vulnerable customer’s name.
    • Senior customer: typically 60 years or older, with relationship to the financial institution as described.
    • Vulnerable customer: 18 or older, residing in a community setting, appearing to have a physical/mental illness or deficiency or limited capacity to manage resources.
    • Financial institution: state or federally chartered banks, savings banks, savings and loan associations, or credit unions.
    • Qualified individual: bank employee responsible for transfers/transactions or their supervisor/manager.
    • Community setting: noninstitutional setting (not including licensed residential facilities).
    • County adult protective services provider: county agency designated to provide protective services for adults.
    • Financial records: any records pertaining to the senior or vulnerable customer’s account.

  3. Release of Records and Protective Actions (amending Section 3)

  4. Mandatory release to protective services and potential law enforcement:

    • If a vulnerable or senior customer has a beneficial interest in an account and the financial institution suspects illegal activity involving the account, the institution must release financial records to a county adult protective services provider. The provider may then share records with law enforcement if deemed necessary.

  5. Authority to delay transactions/disbursements (to prevent exploitation):

    • A qualified individual may delay a transaction or disbursement if they reasonably believe it may result in financial exploitation.
    • Within limits, the bank must:
    • Notify all parties authorized to transact on the account of the delay and the reason for the delay within two business days, unless a party is suspected of exploitation.
    • Notify the department (Department of Banking and Insurance) and the applicable county protective services provider within two business days.
    • Continue the internal review and provide updates to the department/provider upon request, up to seven business days after review completion.
    • The delay ends when:
    • The institution determines there will be no exploitation, or
    • After 15 business days (extendable to 25 with approvals).
    • Courts may extend or modify delays upon petition.
    • Immunity: financial institutions acting in good faith and with reasonable care are immune from administrative or civil liability for delays made under this section.
    • Privacy/information sharing: the department or provider may share reasonable information about the status or disposition of investigations arising from reports to other notifying institutions.

  6. Training Requirement (new subsection in Section 3)

  7. By no later than 45 days after enactment, financial institutions must provide training to employees on recognizing financial exploitation of vulnerable or senior customers.

  8. Training must be provided to new employees within the first three months of employment.

  9. Training content may include indicators of exploitation, reporting procedures, and steps to prevent exploitation, consistent with laws and agreements.

  10. The Department may develop standardized training, or institutions may develop their own.

  11. Effective Date

  12. The act takes effect immediately upon enactment.

Who Is Affected

  • Financial institutions operating in New Jersey (banks, savings banks, savings and loan associations, and credit unions).
  • Employees of financial institutions (training and recognition of exploitation indicators).
  • Vulnerable and senior customers who maintain accounts with these institutions.
  • County adult protective services providers and, where appropriate, law enforcement agencies.

Procedural and Timeline Aspects

  • Mandatory record release to protective services upon suspicion of exploitation with subsequent sharing to law enforcement if needed.
  • Delays of transactions/disbursements are time-limited (initial 15 business days, extendable to 25 with approvals) and governed by a structured notification and review process.
  • Training requirement to be implemented within 45 days of passage, with new-hire training within three months.
  • Immediate effect upon enactment; the act is designed to create a more proactive protective framework.

Potential Impacts

  • Increased protection against financial exploitation of seniors and vulnerable individuals.
  • Greater coordination between financial institutions, protective services, and law enforcement.
  • Possible temporary delays in certain transactions to prevent exploitation, balanced with due process and notification requirements.
  • Additional compliance obligations and training for financial institutions.

Note: This summary reflects the introduced version of the bill and its stated provisions; final law may differ if amended or enacted.

Compiled from official sources — confirm details with the bill’s official record.

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