7-26 - Financial Exploitation Prevention Act
Title 7 > 7-26
Sections (7)
General Provisions
7-26-101 - Title.
This chapter is known as the “Financial Exploitation Prevention Act.”
Enacted by Chapter 228, 2020 General Session
7-26-102 - Definitions.
As used in this chapter:
(1) “Adult Protective Services” means the same as that term is defined in Section 26B-6-201.
(2) “Covered financial institution” means any of the following that operate in the state: a state or federally chartered:bank;savings and loan association;savings bank;industrial bank;credit union;trust company; ordepository institution; ora financial institution.
(3) “Financial exploitation” means: the wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or other property of an individual; oran act or omission, including through a power of attorney, guardianship, or conservatorship of an individual, to:obtain control, through deception, intimidation, or undue influence, over the individual’s money, assets, or other property to deprive the individual of the ownership, use, benefit, or possession of the individual’s money, assets, or other property; orconvert the individual’s money, assets, or other property to deprive the individual of the ownership, use, benefit, or possession of the individual’s money, assets, or other property.
(4) “Law enforcement agency” means the same as that term is defined in Section 53-1-102.
(5) “Qualified individual” means: a branch manager of a covered financial institution; ora director, officer, employee, agent, or other representative that a covered financial institution designates.
(6) “Third party associated with a vulnerable adult” means an individual: who is a parent, spouse, adult child, sibling, or other known family member of a vulnerable adult;whom a vulnerable adult authorizes the financial institution to contact;who is a co-owner, additional authorized signatory, or beneficiary on a vulnerable adult’s account; orwho is an attorney, trustee, conservator, guardian or other fiduciary whom a court or a government agency selects to manage some or all of the financial affairs of the vulnerable adult.
(7) “Transaction” means any of the following services that a covered financial institution provides: a transfer or request to transfer or disburse funds or assets in an account;a request to initiate a wire transfer, initiate an automated clearinghouse transfer, or issue a money order, cashier’s check, or official check;a request to negotiate a check or other negotiable instrument;a request to change the ownership of, or access to, an account;a request to sell or transfer a security or other asset, or a request to affix a medallion stamp or provide any form of guarantee or endorsement in connection with an attempt to sell or transfer a security or other asset, if the person selling or transferring the security or asset is not required to obtain a license under Section 61-1-3;a request for a loan, extension of credit, or draw on a line of credit;a request to encumber any movable or immovable property; ora request to designate or change the designation of beneficiaries to receive any property, benefit, or contract right.
(8) “Vulnerable adult” means: an individual who is 65 years old or older; orthe same as that term is defined in Section 26B-6-201.
Amended by Chapter 327, 2023 General Session
General Prevention of Financial Exploitation
7-26-201 - Permitted delay of wire transfers.
(1) This section applies to a wire transfer that transfers money from a consumer account at a covered financial institution.
(2) If a qualified individual reasonably believes that executing a requested wire transfer will result in financial exploitation, the covered financial institution may: delay the wire transfer; andcontact:a law enforcement agency;Adult Protective Services; ora joint co-owner on the account.
(3) The delay of a wire transfer described in Subsection (2) expires when the earlier of the following occurs: the covered financial institution reasonably determines that the wire transfer is not financial exploitation; or15 business days pass after the day on which the covered financial institution first initiated the delay of the wire transfer.
Enacted by Chapter 228, 2020 General Session
7-26-202 - Office of the Attorney General website.
The Office of the Attorney General shall post on the Office of the Attorney General’s website up-to-date information regarding financial scams, including:
(1) the most prominent and common characteristics of financial scams;
(2) current or trending financial scams;
(3) resources for a vulnerable adult who suspects a financial scam; and
(4) resources for an individual who suspects the financial exploitation of a vulnerable adult.
Enacted by Chapter 228, 2020 General Session
Permitted Acts to Prevent Financial Exploitation of Vulnerable Adults
7-26-301 - Delay of a transaction involving a vulnerable adult.
(1) A covered financial institution may delay a transaction involving a vulnerable adult, if: a qualified individual reasonably believes that executing the requested transaction will result in financial exploitation of the vulnerable adult; ora law enforcement agency provides the covered financial institution information demonstrating that it is reasonable to believe that financial exploitation of a vulnerable adult is occurring, has or may have occurred, is being attempted, or has been or may have been attempted.
(2) A covered financial institution that delays a transaction in accordance with Subsection (1):except as provided in Subsection (2)(b), shall no later than two business days after the day on which the transaction is delayed, send notice of the delay and the reason for the delay to each party: authorized to transact business on the account; andfor which the covered financial institution has contact information;may send notice of the delay, the reason for the delay, or any additional information about the transaction to: a law enforcement agency; orAdult Protective Services.A covered financial institution may:decide not to provide notice to a party described in Subsection (2)(a)(i) if a qualified individual reasonably believes the party has engaged in attempted financial exploitation of the vulnerable adult; orsend a notice described in Subsection (2)(a) electronically.
(3) Except as provided in Subsection (3)(b), the delay of a transaction described in Subsection (1) expires when the earlier of the following occurs:the covered financial institution reasonably determines that the transaction will not result in financial exploitation of a vulnerable adult; or15 business days pass after the day on which the covered financial institution first initiated the delay of the transaction.If a covered financial institution receives a request from a law enforcement agency to extend the delay of a transaction beyond the expiration date established in Subsection (3)(a), the covered financial institution may extend the delay no more than 25 business days after the day on which the covered financial institution first initiated the delay.A court of competent jurisdiction may enter an order: extending or shortening the delay of a transaction; orproviding relief based on the petition of the covered financial institution, law enforcement agency, or an interested party.
Enacted by Chapter 228, 2020 General Session
7-26-302 - Permitted notifications.
(1) A covered financial institution may notify a law enforcement agency or Adult Protective Services if a qualified individual believes that the financial exploitation of a vulnerable adult is occurring, has or may have occurred, is being attempted, or has been or may have been attempted.
(2) A covered financial institution may notify a third party associated with a vulnerable adult if a qualified individual believes that the financial exploitation of the vulnerable adult is occurring, has or may have occurred, is being attempted, or has been or may have been attempted.
(3) A covered financial institution may choose not to notify a third party associated with a vulnerable adult as described in Subsection (2), if a qualified individual reasonably believes that the third party is, may be, or may have been engaged in the financial exploitation of the vulnerable adult.
Enacted by Chapter 228, 2020 General Session
Immunity
7-26-401 - Immunity.
(1) A covered financial institution or a director, officer, employee, attorney, accountant, agent, or other representative of the covered financial institution: has no duty to act under this chapter to protect a vulnerable adult from financial exploitation by a third person; andis immune from all criminal, civil, and administrative liability for not taking a permissive action under this chapter.
(2) A covered financial institution or a director, officer, employee, attorney, accountant, agent, or other representative of the covered financial institution who chooses to act as described in: Subsection 7-26-201(2), is immune from all criminal, civil, and administrative liability for the act, unless the act is done in bad faith; andSection 7-26-301 or 7-26-302, is immune from all criminal, civil, and administrative liability for the act, unless the act:is done in bad faith; andcauses pecuniary loss to a vulnerable adult suspected of being a victim of financial exploitation.
(3) The immunity described in this section does not extend to an individual that is a principal, a conspirator, or an accessory after the fact to a criminal offense involving the financial exploitation of a vulnerable adult.
Enacted by Chapter 228, 2020 General Session