The bill aims to enhance consumer protections against financial fraud, particularly for vulnerable adults and individual account owners. It amends existing laws to require financial institutions to immediately notify the department and the department of financial institutions if they suspect financial exploitation or fraud. Specifically, it mandates that financial institutions place an internal flag on accounts when there is a reasonable belief that financial exploitation or fraud may have occurred, is being attempted, or has been attempted. This internal flagging system is intended to alert employees about potential risks without imposing a legal obligation to withhold funds or refuse transactions.

Additionally, the bill introduces new provisions that require broker-dealers and investment advisers to notify the department of financial institutions if they suspect financial fraud related to securities or funds in an account. It also emphasizes the importance of having policies and procedures in place for internal flagging of accounts to protect clients from potential fraud. The bill includes a provision that ensures if any part of the act is deemed invalid, the remaining sections will still be enforceable, thereby maintaining the integrity of the consumer protection measures.

Statutes affected:
Original Bill: 74.34.215, 30A.22.210, 30A.22.020