Community Bankers Association of Illinois

JCAR Approves Elder Financial Exploitation Rule
Final Rule Will Be Completed Late July or Early August

The Joint Committee on Administrative Rules (JCAR) approved a proposed rule from the Illinois Department of Financial and Professional Regulation (IDFPR) and the Illinois Department on Aging (IDoA) which mandates financial exploitation training for employees with direct customer contact. The rule will implement Public Act 96-1103 which gave the agencies joint rulemaking authority to “develop minimum training standards which shall be used by financial institutions for their current and new employees with direct customer contact.” The act specified that IDFPR shall retain sole visitation and enforcement authority for this act and make bi-annual reports to the IDoA setting forth statistics of the required training program.

The agencies released a first proposal in January; however, this rule greatly exceeded their statutory authority. CBAI issued a comment letter stating the regulatory overreach and suggesting changes. The agencies responded to our concerns as well as others voiced by other financial institution trade associations and JCAR.

On July 12, JCAR reviewed and approved the revised proposal; however, the agencies still need to complete and publish the final rule. Provisions that will likely be part of the final rule include:

  • Banks must train employees and officers with direct customer contact to properly recognize and report suspected elder financial exploitation.
  • Current employees and officers must complete training within six months of the finalized rule.
  • Employees must complete refresher training every three years.
  • The training program must include: (1) recognizing the indicators of financial exploitation and (2) how to report financial exploitation.
  • Training may be conducted in-person or via electronic media (DVD, video, or Internet) and must be at least 30 minutes in length.
  • Banks must create and maintain a list of the employees who complete the training, and the list must be maintained and made available to IDFPR for inspection.

CBAI will notify all members when the final rule is completed. CBAI will also notify members of acceptable and practical training programs when the information is made available from the regulatory agencies.

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