SB181 Alabama 2021 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Co-Sponsor

Steve Livingston

Session

Regular Session 2021

Title

Financial institutions, authorized to refuse to execute or delay execution of certain financial transactions involving account of an elderly or vulnerable adult when financial exploitation may have occurred, may have been attempted, or is being attempted

Summary

The bill allows banks and other financial institutions to pause or refuse certain transactions for elderly or vulnerable adults when exploitation may be occurring, with safeguards and contact-list provisions to help prevent abuse.

What This Bill Does

If an institution has reasonable cause to suspect financial exploitation, it may refuse or delay a transaction on the elderly or vulnerable adult’s account. It may offer the adult a chance to submit or update a list of people to contact when exploitation is suspected. The institution must notify authorized parties and report incidents to the Department of Human Resources and law enforcement when exploitation is involved. It provides legal immunity for actions taken in good faith, and it lets institutions rely on information from authorities; the act becomes effective January 1, 2022.

Who It Affects

• Elderly adults (65+) or vulnerable adults (18+ with impairment) whose accounts may be targeted and who may benefit from protections, including possible delays or refusals of transactions and creation of contact lists.
• Financial service providers (banks, credit unions, etc.) and their employees/officers, who gain authority to pause transactions, must follow notification/reporting rules, may rely on information from authorities, and receive immunity for reasonable actions.

Key Provisions

• Allows a financial service provider to refuse or delay a financial transaction if there is reasonable cause to suspect financial exploitation of an elderly or vulnerable adult.
• Allows the provider to offer the elderly or vulnerable adult the option to submit and periodically update a list of contacts who may be contacted when exploitation is suspected.
• Requires notification to authorized contacts and reporting to the Department of Human Resources and law enforcement when exploitation is suspected (except when the suspected perpetrator is the contact).
• Provides immunity from criminal, civil, and administrative liability for actions taken in good faith under the act.
• Defines key terms (account, elderly adult, vulnerable adult, financial service provider, financial transaction, financial exploitation) and clarifies the scope of covered entities.
• Effective January 1, 2022; repeals conflicting laws to the extent stated, and does not alter existing contracts.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Financial Institutions