Senate Bill 2763

AN ACT TO CREATE SECTION 81-5-109, MISSISSIPPI CODE OF 1972, TO REQUIRE BANKS TO REPORT SUSPECTED FRAUDULENT WIRE TRANSFERS OF $10,000.00 OR MORE TO THE SECRET SERVICE AND MISSISSIPPI OFFICE OF HOMELAND SECURITY WITHIN 24 HOURS OF NOTICE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following shall be codified as Section 81-5-107, Mississippi Code of 1972:

81-5-107. (1) For the purpose of this section, notice shall mean:

(a) Communication between a depositor and a banking institution, or their representative, whether via in-person, telephone or some form of electronic communication, where the depositor expresses concern about a fraudulent charge or transfer made from their account with the banking institution; or

(b) Where security software or measures utilized by the banking institution detect and report an incident of potentially fraudulent activity within a client account or client accounts.

(2) Upon notice from a depositor or security software of a suspected fraudulent wire transfer or charge of Ten Thousand Dollars ($10,000.00) or more, a bank shall notify the United States Secret Service and the Mississippi Office of Homeland Security of the suspected fraud within twenty-four (24) hours of the bank receiving notice. If the fraud detection was made by security software utilized by the banking institution, the bank shall notify the depositor via a phone call and electronic mail or by mail if an email address is not provided, within twenty-four (24) hours of receiving notice of suspected fraud.

(3) Upon the conclusion of the investigation of fraud, the depositor shall be provided with a written report by electronic mail and by mail, if both are possible, within five (5) business days after a determination has been made.

(4) Failure of a bank to provide such notice to the United States Secret Service and the Mississippi Office of Homeland Security shall result in a fine not to exceed Two Hundred Fifty Dollars ($250.00). The fine shall be enforced and made payable to the Department of Bank Supervision.

SECTION 2. This act shall take effect and be in force from and after July 1, 2024.