The Minnesota Senate unanimously passed legislation that enhances protections for senior citizens against financial exploitation. The bill, Senate File 2466, permits certain financial services providers to temporarily delay transactions where financial exploitation is suspected and to disclose that information to authorities.

“Financial fraud and financial exploitation are growing concerns, particularly for Minnesotans of retirement age,” said Senator Jeremy Miller (R-Winona). “In fact, one in five Minnesotans over 65 have been victims of financial fraud or exploitation. This important bill will give financial institutions the tools to help prevent fraud before it happens. We know criminals will keep trying, but seniors have some strong defenders in their corner.”

The legislation allows banks, credit unions, and other financial services providers to delay a transaction if they have a reasonable belief it would result in the financial exploitation of a vulnerable person or an individual 65 years of age or older, and permits them to disclose their suspicion to the Minnesota Adult Abuse Reporting Center or other third parties. The bill also provides individuals and financial services providers immunity from liability for disclosing that information in good faith. This action would not freeze the victim’s entire account; other transactions could continue to take place while the pending transaction is investigated, and all delays or holds would expire when there is a reasonable belief the transaction will not result in financial exploitation or 15 days after the attempted transaction. The bill mirrors legislation passed in 2018 that gave broker-dealers the authority to freeze a transaction if they suspect fraud involving senior citizens.