Bill
Bill > S3421
NJ S3421
NJ S3421Requires, or sanctions, as appropriate, financial institutions to take certain action when senior or vulnerable customers make certain financial transactions.
summary
Introduced
02/09/2026
02/09/2026
In Committee
02/09/2026
02/09/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill amends existing law to require financial institutions to release financial records regarding a customer's account to a county adult protective services provider when suspecting fraud of a vulnerable or senior customer. Under the bill, the adult protective services provider is then authorized to release the same records to a law enforcement agency, if deemed necessary. Under the existing law, a financial institution is authorized, but not required, to release financial records regarding a customer's account to a law enforcement agency, a county adult protective services provider, or both under the same circumstances. As such, this bill mandates financial institutions to release those records and provides that adult protective services is the first point of contact. As defined under the existing law, a "senior customer" means a natural person, who, to the financial institution acting in good faith, appears to be at least 60 years of age, who utilized or is utilizing any service of a financial institution, or for whom a financial institution is acting or has acted as a fiduciary, in relation to an account maintained in the person's name. A "vulnerable customer" means a natural person, who is at least 18 years of age, resides in a community setting, and, to a financial institution acting in good faith, appears to have a physical or mental illness, disability or deficiency, or lacks a sufficient understanding of, and the capacity to make, communicate or carry out decisions concerning, the management of the customer's savings or resources, who utilized or is utilizing any service of a financial institution, or for whom a financial institution is acting or has acted as a fiduciary, in relation to an account maintained in the person's name. The bill authorizes financial institutions, including banks and credit unions, to delay financial transactions of certain vulnerable and senior customers under suspicious circumstances for the protection of the customer. The bill would provide financial institutions with immunity for certain actions taken in good faith. The bill provides for the training of employees of financial institutions to recognize signs of financial exploitation of vulnerable and senior customers, as well as for how to report suspected exploitation.
AI Summary
This bill mandates that financial institutions, such as banks and credit unions, must release financial records of a customer's account to a county adult protective services provider if the institution suspects fraud against a senior customer (defined as someone appearing to be at least 60 years old) or a vulnerable customer (defined as someone at least 18 with a physical or mental impairment or lack of understanding regarding financial decisions, residing in a community setting). The adult protective services provider can then share these records with law enforcement if necessary. Previously, financial institutions were only authorized, not required, to share such records. The bill also allows financial institutions to delay suspicious transactions or disbursements from accounts of senior or vulnerable customers for up to 15 business days (extendable to 25 days under certain conditions) to investigate potential financial exploitation, provided they notify relevant parties and authorities, including the Department of Banking and Insurance. Financial institutions acting in good faith under these provisions are granted immunity from liability, and their employees will receive training to recognize and report signs of financial exploitation.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 02/09/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S3421 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3421_I1.HTM |
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