A bill in Maryland, currently awaiting the Governor’s signature, would allow financial institutions to add a “trusted contact” to an account to help address suspected financial exploitation and enable credit unions and banks to delay disbursement in such cases.

According to the Vulnerable Adult Banking Protection Act, a trusted contact may be a family member or another individual whom the financial institution reasonably believes has a close relationship with the account holder. This person is not authorized to conduct transactions on the account. Instead, they serve as a point of contact that a credit union or bank may reach out to if they detect potential fraud, financial exploitation, or other suspicious activity.

The bill applies to credit union members aged 65 or older, as well as vulnerable adults. It also permits financial institutions to place a temporary hold on transactions when there is a reasonable suspicion of financial exploitation. In such cases, written notice must be provided within four business days to Adult Protective Services, law enforcement, or a State’s Attorney. The bill also includes a good faith immunity provision for financial institutions acting under these guidelines.