June 18, 2026
Mrs. Kim introduced the following bill; which was referred to the Committee on Financial Services
To amend the Expedited Funds Availability Act to provide exceptions in the case of fraudulent checks or wire transfers, and for other purposes.
Section 1. Short title
This Act may be cited as the Strengthening Transaction Oversight and Preventing Payments Fraud Act of 2026
or the STOP Payments Fraud Act of 2026
.
Sec. 2. Parity of availability for certain checks
The Expedited Funds Availability Act (12 U.S.C. 4001 et seq.) is amended—
(a)
in section 603 (12 U.S.C. 4002)—
(1)
in subsection (a)(2)—
(A)
by striking subparagraphs (A) and (F);
(B)
by redesignating subparagraphs (B) through (E) as subparagraphs (A) through (D), respectively; and
(C)
in subparagraph (C), as so redesignated, by adding and
at the end; and
(2)
in subsection (d), by striking paragraph (1) and the heading to paragraph (2); and
(b)
in section 604(a)(1)(D), by striking subparagraph (A), (B), or (C)
and inserting subparagraph (A) or (B)
.
Sec. 3. Exception to funds availability requirements in the case of fraud
Section 604(c) of the Expedited Funds Availability Act (12 U.S.C. 4003(c)) is amended—
(1)
in paragraph (1), in the heading of the paragraph, by striking In general
and inserting Collectability
;
(2)
by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively;
(3)
by inserting after paragraph (1) the following:
(2) Fraud
(A) Regulations
In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, subsections (a)(2), (b), (c), and (e) of section 603 shall not apply with respect to any check deposited in an account at a depository institution if the receiving depository institution has reasonable suspicion to believe that the check is false, unauthorized, or otherwise involves fraud. For purposes of the preceding sentence, reasonable suspicion to believe that a check is false, unauthorized, or otherwise involves fraud requires the existence of indicators that would lead a reasonable person to suspect that the check involves fraud. Such reasons shall be included in the notice required under subsection (f).
(B) Rule of application
A receiving depository institution that has reasonable suspicion to believe that a check is false, unauthorized, or otherwise involves fraud, as described in subparagraph (A), may also have reasonable cause to believe that such check is uncollectible from the originating depository institution, as described in paragraph (1).; and
(4)
in paragraph (4), as so redesignated, by striking paragraph (1)
and inserting paragraph (1) or (2)
.
Sec. 4. Exception to funds availability requirements in the case of new accounts and fraudulent wire transfers
Section 604 of the Expedited Funds Availability Act (12 U.S.C. 4003) is amended by adding at the end the following:
(g) Application of certain exceptions in circumstances with greater fraud risk
With respect to an account established at a depository institution, and without regard to whether the account was established by a new depositor, upon the occurrence of circumstances identified by rule by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, as associated with greater fraud risk, the provisions of paragraphs (1) through (3) of subsection (a) shall apply with respect to any deposit in such account for a period of time determined by rule by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, but not to exceed 60 days for each such occurrence.
(h) Reasonable suspicion exception for wire transfers
(1) In general
In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, section 603(a)(1)(B) shall not apply with respect to funds received by a depository institution by wire transfer if the receiving depository institution has reasonable suspicion to believe that the wire transfer is false, unauthorized, or otherwise involves fraud. For purposes of the preceding sentence, reasonable suspicion to believe that a wire transfer is false, unauthorized, or otherwise involves fraud requires the existence of indicators that would lead a reasonable person to suspect that the wire transfer involves fraud. Such reasons shall be included in the notice required under subsection (f).
(2) Basis for determination
No determination under this subsection may be based on any class of wire transfers or persons.
(3) Overdraft fees
If the receiving depository institution determines that a wire transfer for credit to an account is a wire transfer described in paragraph (1), the receiving depository institution shall not assess any fee for any subsequent overdraft with respect to such account, if—
(A)
the depositor was not provided with the written notice required under subsection (f) (with respect to such determination) at the time the wire transfer was delayed for credit; and
(B)
the overdraft would not have occurred but for the fact that the funds so transferred are not available.
(4) Compliance
Each agency referred to in section 610(a) shall monitor compliance with the requirements of this subsection in each regular examination of a depository institution. For the purpose of this paragraph, each depository institution shall retain a record of each notice provided under subsection (f) as a result of the application of this subsection.
(i) Rule of construction
Nothing in this Act may be construed to restrict or prohibit a depository institution involved with a deposit by check or wire transfer from communicating to any other depository institution also involved with the deposit that a depository institution has invoked an exception under this section to some or all of the requirements of section 603 with respect to the deposit.