STOP Payments Fraud Act of 2026

[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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