The House Financial Services Committee voted 51-0 to advance the ICBA-supported STOP Payments Fraud Act (H.R. 9331).
Details: Introduced by Rep. Young Kim (R-Calif.), H.R. 9331 would:
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Amend the Expedited Funds Availability Act to provide financial institutions with greater flexibility to place exception holds on deposited funds when fraud or scams are suspected.
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Extend this authority to funds received via wire transfers and allows regulators to remove expedited funds availability requirements for Treasury and cashier's checks.
ICBA Support: ICBA this week urged the committee to pass the legislation and send it to the House floor, noting it represents an important step in addressing the recent surge in financial losses that result from check and wire fraud.
Testimony: ICBA testified before Congress earlier this year on legislative and regulatory recommendations to help community banks combat fraud and scams, noting the fraud problem must be fought through coordination among financial institutions, law enforcement, and government at every level.
Resources for Community Bankers: Information and resources on fraud and scams is available on ICBA’s website.