2026 New Legislation - Transaction Hold Rules (Effective July 1, 2026)

2026 New Legislation - Transaction Hold Rules  (Effective July 1, 2026)

Developed with the guidance of The Georgia Department of Banking, CBA is pleased to bring this program to its members. 

As financial exploitation schemes continue to grow in sophistication and frequency, community banks are increasingly on the front lines of protecting vulnerable customers. Effective July 1, 2026, Georgia’s new financial exploitation law introduces important responsibilities and protections for financial institutions. Join us for this timely program to gain a clear understanding of the law’s requirements, learn practical steps for implementation, and ensure your bank is prepared to respond confidently when financial abuse is suspected. Whether you work in compliance, operations, retail banking, risk management, or senior leadership, this session will provide valuable guidance for navigating these new obligations while safeguarding your customers and your bank.

INSTRUCTORS:

Financial exploitation of disabled and elderly adults is a serious problem in Georgia and the country as a whole.

Under Georgia state law effective July 1, 2026, financial institutions are expressly authorized to place a hold on certain transactions where financial abuse is suspected.  Under the law, the financial institution can place a hold on the execution of a financial transaction if the financial institution has reasonable cause to suspect that a transaction may involve, facilitate, result in, or contribute to financial exploitation of a disabled or elderly adult.  In addition, the law allows consumers to identify “trusted contacts” who may be contacted if the financial institution has reasonable cause to flag the transaction.  Under the law, if a financial institution places a hold on a transaction, it must notify all parties on the account as well as the trusted contact, unless it reasonably believes such individuals are participants in the suspected financial abuse, and start an investigation. 

Further, the transaction hold may only be placed for fifteen days unless the results of the investigation are inconclusive but still indicate financial exploitation, in which case the hold may be extended an additional fifteen days.  The law permits a financial institution to release the hold prior to the expiration of the timeframe if the investigation does not show financial exploitation.  The law further states that, if a hold is in place, the payment order is not deemed placed until the hold is released. 

The law requires that financial institutions have policies and procedures in place related to financial exploitation and transaction holds and train employees on these policies and procedures.  Finally, the law allows that if a financial institution acts in good faith and exercises reasonable care, the financial institution will not be liable for placing a transaction hold for suspected financial exploitation.

Don't wait until the law takes effect to begin preparing. Attend this session to better understand the new requirements, identify potential operational impacts, and walk away with practical insights that can help your bank strengthen its policies, train staff effectively, and protect customers from financial exploitation. 





ABOUT OUR INSTRUCTORS:
Erin S. Woodside is an Associate at James-Bates-Brannan-Groover, LLP. Focusing her practice on financial matters, Erin Woodside advises community banks and small businesses in a range of issues, including corporate formation and governance, securities and regulatory compliance, contract disputes and raising capital through private placements. Erin also counsels clients on creditors’ rights, bankruptcy and collections.  Erin believes strongly in incorporating her core values into her legal practice by emphasizing integrity, authenticity, reliability  and kindness. Prior to joining the firm, Erin gained experience in various areas of law as an associate in a domestic relations litigation firm and as a law clerk for the Piedmont Judicial Circuit. While in law school, she was a summer associate for Jones Day in Frankfurt, Germany,  and for the SEC Atlanta.

Lori Godfrey is the COO and Chief Lobbyist for CBA of Georgia. She brings a wealth of expertise to the Community Bankers Association (CBA) of Georgia, leveraging her extensive background as a regulator to lead the association’s government and regulatory relations initiatives. Since joining the CBA team in 2016, Lori has played a pivotal role as both the primary leader for advocacy and regulatory matters and the “second in command” for the organization. Her strategic vision and comprehensive understanding of the financial and legislative landscape are invaluable assets to CBA and its members. As the association’s government and regulatory relations leader, Lori directs state lobbying efforts to ensure that the interests of Georgia’s community bankers are represented effectively. She builds and maintains strong relationships with legislators, regulators, and policymakers, coordinating communication strategies on key government relations (GR) and regulatory issues. Lori oversees the management of PAC and PR funds, spearheads advocacy campaigns, and leads regulatory education programs, providing members with the tools and information they need to navigate an evolving financial landscape. She also serves as the staff liaison for the Advocacy Committees, fostering collaboration and engagement to advance CBA’s legislative goals. Additionally, Lori fulfills the role of CBA Corporate Secretary, ensuring effective governance and organizational compliance. Beyond her government relations responsibilities, Lori works closely with the CEO to execute the association’s strategic plans and ensure organizational success. Her role encompasses managing employees, overseeing marketing programs, human resources, and media relations, demonstrating her versatility and leadership across multiple functions. Lori’s deep regulatory expertise, strategic leadership, and commitment to advocacy make her a cornerstone of the CBA team, driving the association’s mission to empower Georgia’s community banks and support their long-term success.