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Bill

HR 9331

To amend the Expedited Funds Availability Act to provide exceptions in the case of fraudulent checks or wire transfers, and for other purposes.

119th Congress Introduced by Young Kim

The bill allows banks to delay or withhold deposited funds when fraud is suspected or detected in checks or wire transfers, reshaping funds-availability rules.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 9331

Summary of HR 9331 (Session 119)

Purpose and intent

HR 9331 aims to amend the Expedited Funds Availability Act (EFAA) to create specific exceptions in situations involving fraudulent checks or fraudulent wire transfers. The bill seeks to adjust how banks and financial institutions handle the availability of funds in these scenarios, addressing circumstances where traditional funds‑availability timelines may be unsuitable due to fraud concerns.

Key provisions and changes

  • Amendment to EFAA: The bill would modify the Expedited Funds Availability Act to introduce exceptions related to fraud. These exceptions would allow financial institutions to alter or delay the availability of deposited funds when there is a determination or reasonable suspicion of fraudulent activity involving checks or wire transfers.
  • Fraud-focused carve-outs: The core change centers on providing a legal framework for preventing the quick availability of funds in cases where fraud is suspected or detected, potentially giving banks more discretion to withhold or place holds on funds to mitigate risk.
  • Scope of applicability: The provisions would apply to depositary banks and institutions that are subject to EFAA requirements, affecting consumer and possibly business deposits where fraudulent activity is involved.
  • Operational impact for institutions: Banks could implement longer holds or additional verification steps in response to fraudulent items, aligning fund‑availability practices with fraud risk management.

Who would be affected

  • Financial institutions: Banks and other depository institutions subject to the Expedited Funds Availability Act would implement the fraud-related exceptions.
  • Depositors: Consumers and businesses whose checks or wire transfers are involved in suspected or confirmed fraud may experience changes to how quickly funds become available after deposits.
  • Regulators/oversight bodies: The modification would change how institutions report, justify, or document holds and exceptions under EFAA, potentially influencing examination and compliance practices.

Procedural and timeline aspects

  • Introduced and referred: The bill was introduced in the House and referred to the House Committee on Financial Services on June 18, 2026.
  • Sponsorship: Co-sponsored by Representative Young Kim.
  • Next steps: If advanced, the bill would proceed through committee consideration, potential markups, and, if approved, move to the full House for debate and a vote. Any passage would typically require alignment with Senate considerations and potential conference actions, given it involves federal financial regulations.

Potential implications and considerations

  • Consumer protections vs. fraud risk management: The bill seeks to formalize fraud-related exceptions, which could enhance risk mitigation for institutions but may affect how quickly legitimate funds become available in some cases if fraud is suspected.
  • Clarity and implementation: Practical guidance on what constitutes “fraud” and the standards for determining when a hold may be applied would be essential to ensure predictable application and minimize disputes.
  • Impact on fee structures and customer service: Changes in hold practices could influence customer service experiences, appeals processes, and any fees associated with delayed funds.

Overall, HR 9331 modifies how the Expedited Funds Availability Act handles fraud scenarios, granting financial institutions procedures to delay or withhold funds when fraudulent activity involving checks or wire transfers is suspected or detected.

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

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