Committee adopts amendment and advances bill to let banks hold suspicious transactions to curb elder financial abuse

The Banking and Insurance Full Committee voted to amend and report S851, the "Protection from Financial Exploitation" bill, advancing it to the full Senate.

Dr. Gilbert, who presented the measure, said the bill "gives financial institutions a tool to help prevent financial exploitation of adults," allowing banks and credit unions to place a hold on or decline a suspicious transaction, require notice to account holders and, when appropriate, notify the Department of Social Services or law enforcement. The bill also creates a process and timeline for removing holds and allows institutions to offer account holders a list of trusted contacts, Dr. Gilbert said.

Members described a subcommittee amendment — worked on with AARP and the bankers association — that adopts the Title 35 definition of "eligible adult" for consistency and clarifies how holds end, including stronger authority for courts to terminate or extend a hold. The amendment was presented by the senator from Florence and supported by the subcommittee chair.

Committee members emphasized the bill is permissive, not mandatory, and intended to protect account holders without unduly restricting access to funds. As one senator put it, the amendment aims to "make sure that the financial institutions didn't unnecessarily hold people's money" while investigations proceed.

After adopting the amendment, the committee voted to adopt the bill as amended and reported S851 favorably to the full Senate. The discussion closed with the chair thanking the bill's sponsor from Oconee for bringing the measure forward.

The committee did not record a roll-call tally in the transcript; members voiced 'ayes' and the chair concluded the ayes carried the motions.