The Warren Sun

The Michigan state senate has approved legislation aimed at preventing financial exploitation of senior citizens.

Under Senate Bill 464, financial institutions would be required to take safety measures to prevent seniors from being exploited and if they complied with the law would be exempt from criminal and civil liability from the acts, according to a news release.

“The financial exploitation of seniors and vulnerable citizens continues to worsen,” said State Sen. Peter  Lucido, (R-Shelby Township). “We should do more to crack down on the predatory practices of these criminals, and empowering banks and financial institutions to protect people’s financial health and well-being, particularly that of our seniors, is an important part of the solution. These bills will help in that fight.”

The bill requires banks to train their employees in how to spot financial exploitation and how to report it to law enforcement agencies and adult protective services.

Under the legislation, “if a financial institution suspects or detects  covered financial exploitation of a member or customer, the financial  institution may delay the related transaction for further investigation  or examination of available facts.”

The legislation also place requirements on law enforcement agencies in financial exploitation cases, the news release said.

With 10 days of being notified of suspected fraud by a bank, law enforcement agencies would have to notify the county prosecutor.

“As soon as practicable after the investigation, the law enforcement agency or adult protective services shall notify the financial institution of the disposition of the reported incident,” the bill says.

The legislation now moves on to the House.

Two other measures, also sponsored by Lucido, would given county social service agencies the right to notify financial institutions when they are investigating reports of possible financial abuse from the institutions.

Another bill would make documents public that state Department of Health and Human Services prepared in order to comply with the law.

“There is no greater gift we can give our seniors and other vulnerable adults in this Christmas season than to add additional protections to shield them from financial exploitation,” Lucido said.