OBL Testifies in Support of HB 560 – Protect Our Parents Act

03/25/26

Last week, the Ohio Bankers League (OBL) provided proponent testimony before the Ohio House Financial Institutions Committee in support of House Bill 560, the Protect Our Parents Act. The legislation is intended to provide financial institutions with additional tools to help prevent financial fraud and exploitation while maintaining appropriate safeguards to ensure customers retain timely access to their funds.

OBL's testimony can be viewed HERE beginning at the 17:40 mark.

Why the Bill Matters

Financial fraud and exploitation continue to increase in both frequency and sophistication. Banks are often the first to observe warning signs such as unusual withdrawal patterns, urgent wire transfer requests, or sudden changes in account activity that may indicate a scam or coercion.

Under current Ohio law, institutions may identify these red flags but lack clear statutory authority to briefly pause certain transactions while concerns are reviewed. Once funds leave an account - particularly through wire transfers, peer-to-peer payment platforms, or cryptocurrency channels - recovery can be extremely difficult.

HB 560 seeks to address this gap by establishing a framework allowing financial institutions to intervene when there is reasonable cause to suspect financial exploitation.

Key Provisions of HB 560

As introduced, the bill would:

• Provide permissive authority for financial institutions to place temporary holds - generally up to 15 business days - on transactions or disbursements suspected to involve financial exploitation.
• Require prompt reporting of a transactional hold and relevant facts to the Ohio Division of Financial Institutions and the appropriate county department of Job and Family Services (Adult Protective Services).
• Allow notification of authorized account parties or a trusted contact, except where the institution reasonably believes that individual may be involved in the suspected exploitation.
• Require institutions to maintain internal procedures and training related to identifying and escalating suspected financial exploitation.
• Provide civil and administrative immunity for institutions and employees acting in good faith in placing a hold, making a report, or attempting to comply with the statute.

These provisions are intended to provide clarity and flexibility while recognizing the operational realities financial institutions face in responding to suspected fraud.

Balancing Fraud Prevention and Access to Funds

In testimony, OBL emphasized the dual responsibility banks must manage. Financial institutions are expected - and required - to take meaningful steps to detect and prevent fraud, money laundering, and financial exploitation. At the same time, federal and state laws require prompt availability of deposited funds and prohibit unnecessary delays in legitimate transactions.

HB 560 is designed to help institutions navigate this balance by providing narrowly tailored authority and safe-harbor protections to pause suspicious transactions while coordinating with regulators or law enforcement.

Fraud Trends and Customer Expectations

Fraudsters are increasingly leveraging sophisticated tactics, including impersonation schemes, social engineering, and emerging technologies. As a result, fraud attempts are often time-sensitive and require rapid response.

Customers also expect their financial institutions to play an active role in protecting them. At the same time, maintaining reliable access to funds remains critical to preserving trust in the banking system.

Next Steps

OBL will continue working with the bill sponsors and stakeholders as HB 560 moves through the legislative process. We are actively seeking feedback from member institutions regarding operational considerations, compliance impacts, and potential amendments as the legislation evolves.

Members with questions or feedback are encouraged to contact OBL's government relations team.