A new law taking effect on July 1 will allow banks and credit unions in Georgia to temporarily freeze customer accounts for up to 30 days when suspicious activity is detected, as part of a wider package aimed at reducing financial fraud affecting older and vulnerable adults.
Law Introduces Temporary Account Hold Powers
The legislation, signed by Governor Brian Kemp, is designed to give financial institutions greater authority to pause transactions when there is reasonable suspicion of financial exploitation.
Under House Bill 945, banks and credit unions may place a hold on accounts belonging to, or benefiting, an “eligible adult,” defined as individuals aged 65 and over or adults with disabilities.
The measure applies when activity is considered potentially linked to fraud or when account access appears to be used in a manner consistent with exploitation. The same rules also allow institutions to intervene if a third party is suspected of carrying out the activity.
Time Limits On Freezes And Review Process
Account holds begin with an initial period of up to 15 business days. During this time, financial institutions are expected to review the circumstances that triggered the restriction. If concerns remain after the initial review period, the hold can be extended for a further 15 business days.
This creates a maximum total period of 30 business days during which access to funds may be restricted. Banks and credit unions are required to assess available information before deciding whether to continue or lift the restriction.
Notification Rules And Account Access
When a hold is applied, financial institutions must notify authorised account holders and any designated trusted contact within three business days. The law provides an exception in cases where notifying an individual could increase the risk of harm or further exploitation, particularly where that individual is suspected of involvement.
Institutions are also required to maintain internal documentation outlining the reason for the hold and the findings of their review process. A “good faith” provision is included in the legislation, offering legal protection to banks and employees acting with reasonable care when applying account restrictions.
Cryptocurrency And Transaction Controls
The same legislation introduces additional rules covering cryptocurrency kiosks and related transactions. Operators must display clear warnings stating that transactions are irreversible and may not be recoverable if fraud occurs.
Limits have also been placed on daily transactions, set at $2,500 for new users and $10,000 for established customers. Fees charged by crypto ATM providers are capped at 18% of the transaction value under the new framework.
Wider Policy Context
The legislation forms part of a broader state effort to address financial fraud targeting older residents, alongside updates to crypto-related activity and consumer protection rules. Other measures signed into law alongside HB 945 include reforms across education, transport enforcement and safeguarding policies.
The financial protection provisions are scheduled to take effect from July 1, marking a shift in how banks are expected to respond to suspected fraud cases involving vulnerable account holders.
