H.R. 9331

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9331 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9331

To amend the Expedited Funds Availability Act to provide exceptions in 
the case of fraudulent checks or wire transfers, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 18, 2026

Mrs. Kim introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the Expedited Funds Availability Act to provide exceptions in 
the case of fraudulent checks or wire transfers, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.''.
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