Virginia Enacts Report and Hold Law That Covers Wide Range of Financial Institutions

March 18, 2019

 

On March 18, 2019, Virginia became the 22nd state to adopt report and hold laws intended to prevent financial exploitation of senior and vulnerable adults. In contrast to most other states, instead of adopting report and hold laws as part of its Securities Act, Virginia amended its Adult Protective Services (APS) statute to add the report and hold provisions. Virginia’s laws apply to a broader range of entities than those traditionally included in report and hold legislation. They cover any “employee, agent, qualified individual, or representative of a bank, trust company, savings institution, loan association, consumer finance company, credit union, investment company, investment advisor, securities firm, accounting firm, or insurance company.”

Virginia did not amend its reporting provision. Financial institution staff may continue to report suspected financial exploitation to the local department of social services. The new hold provision applies to transactions and disbursements and the initial hold may last up to 30 business days after the request is made, unless another time period is ordered by a court. The statute does not provide for a further extension on the placement of the hold. The legislation does not track the NASAA Model Act as most other state’s legislation has, and it does not include third-party reporting provisions. It is effective as of July 1, 2019.