RIS-Page 3
The Financial Exploitation Prevention Act, MCL 487.2081 to 487.2091, was enacted on December 30, 2020, and will
take effect on September 26, 2021. The Act requires a financial institution to report suspected or detected “covered
financial exploitation” of its members or customers to law enforcement or adult protective services. Covered financial
exploitation is defined by MCL 487.2083(c) to mean, “financial exploitation of an individual through deception,
manipulation, coercion, intimidation, or improper leveraging of a caregiver relationship.” A financial institution is
defined by MCL 487.2083(f) to mean “a financial institution as defined in section 4 of the Michigan strategic fund
act, 1984 PA 270, MCL 125.2004.”
Law enforcement and adult protective services are required by MCL 487.2085(5) to provide notice to the county
prosecutor within 10 business days of receiving a report of suspected or detected covered financial exploitation from a
financial institution. Financial institutions are permitted by MCL 487.2085(6) to provide notice to the county
prosecutor if they are unable to communicate with adult protective services or law enforcement. Financial institutions
are also permitted by MCL 487.2085(6) to provide notice to the county prosecutor if adult protective services or law
enforcement does not provide the required follow-up notifications to the financial institution which are required by
MCL 487.2085(4).
The proposed rules prescribe the manner which notification must be made to the county prosecutor’s office by law
enforcement, adult protective services, and financial institutions under the Act. Due to the limited purpose of the
rules, there are no similar standards in other similarly situated states.
A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of
the deviation.
There are no similar standards in other similarly situated states.
3. Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed
rules.
Financial institutions are required to report suspicious activity to the Financial Crimes Enforcement Network, under
the Bank Secrecy Act of 1970, 31 USC 5311-5332, but financial institutions are not required under this law to notify a
prosecuting authority of the suspicious activity. The proposed rules prescribe the manner which notification must be
made to the county prosecutor’s office of suspected or detected covered financial exploitation by law enforcement,
adult protective services, and financial institutions under the Act. There is no overlap or duplicate between the
requirements of the Bank Secrecy Act of 1970, 31 USC 5311-5332, and the proposed rules.
MCL 400.11a(4) permits any person who suspects that an adult has been abused, neglected, or exploited to make a
report to the county department of social services of the county in which the abuse, neglect, or exploitation occurred.
However, this provision also does not permit financial institutions to notify the county prosecutor’s office of financial
exploitation, nor does it require adult protective services or law enforcement to notify the county prosecutor’s office
of financial exploitation. Therefore, there is no overlap or duplicate between the requirements of MCL 400.11a(4)
and the proposed rules.
There are no laws, rules, or other legal requirements that may conflict with the proposed rules.
A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws
applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken
by the agency to avoid or minimize duplication.
The proposed rules have been coordinated, to the extent practicable, with the reporting requirements of the Bank
Secrecy Act of 1970, 31 USC 5311-5332. Efforts were undertaken to minimize duplication related to reporting
requirements.
4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated
standard, provide a statement of specific facts that establish the clear and convincing need to adopt the more
stringent rules.
MCL 24.232(8) does not apply.
5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard,
provide either the Michigan statute that specifically authorizes the more stringent rules OR a statement of the
specific facts that establish the clear and convincing need to adopt the more stringent rules.
MCL 24.245(3)