Bill > HB1900

This bill enhances consumer protections against financial fraud by establishing new requirements and procedures for financial institutions, broker-dealers, and investment advisers when they suspect potential financial exploitation or fraud. The legislation requires these financial entities to immediately notify the department of financial institutions if they reasonably believe financial fraud may have occurred, been attempted, or is being attempted. Financial institutions must now implement internal flagging systems that allow employees to mark accounts where suspicious activity has been detected, such as unusual transactions that differ significantly from the account's typical history. The bill provides legal immunity for institutions and employees who act in good faith when placing these internal flags or reporting potential fraud. Additionally, the bill expands the purposes of financial institution regulations to explicitly include preventing fraud of individual account owners. The legislation applies to various types of accounts, including those of vulnerable adults, and gives financial institutions more discretion to pause or investigate potentially fraudulent transactions. The bill aims to create a more proactive approach to identifying and preventing financial exploitation by providing clear guidelines and notification requirements for financial service providers.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=1900&Year=2025&Initiative=false