Institution of Criminal Prosecutions; Assistance to State and Federal Law Enforcement Agencies; Providing Information to Financial Institutions Considering Employment of Suspected Person

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Criminal and Related Provisions
  6. Institution of Criminal Prosecutions; Assistance to State and Federal Law Enforcement Agencies; Providing Information to Financial Institutions Considering Employment of Suspected Person

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  1. Upon discovery, by report or otherwise, of any apparent violation of any state or federal criminal law which is perpetrated through a deposit or loan account maintained at or which utilizes a monetary instrument issued by a financial institution located in this state or of any state or federal criminal law which relates to a financial institution, the department shall refer the matter to an appropriate law enforcement or prosecuting authority for further action. The appropriate state prosecuting authority shall have the right to submit to the grand juries of the respective counties of the state, or otherwise seek an indictment of, any criminal violations of the laws of Georgia known by it to have occurred in such counties. Similarly, any United States attorney may likewise submit to a grand jury, or otherwise seek an indictment of, any criminal violations of the laws of Georgia which also constitute violations of the laws of the United States applicable to such financial institution. Nothing herein shall be so construed as to prevent the appropriate state prosecuting authority or other persons from proceeding in such cases by affidavit and warrant.
  2. The department may assist state and federal law enforcement agencies in further investigation of apparent violations of state or federal criminal statutes referred to in subsection (a) of this Code section.
  3. Without incurring civil liability or, in the case of the department, violating the provisions of Code Section 7-1-70, any financial institution that is the employer or former employer of a person or the department, whether in its regulatory capacity or as the employer or former employer of a person, may provide information to a financial institution which has employed or is considering employment of such person concerning the known or suspected involvement of such person in an apparent violation of a state or federal law or regulation which has been reported to the state or federal law enforcement or regulatory agency having jurisdiction of the violation unless the information is false and such employer, former employer, or the department knows that it is false and provides it with actual malice. For purposes of this Code section, the terms "financial institution" and "department" shall mean any duly elected or appointed official of such entities.
  4. If any board of directors, director, or officer of any financial institution is required by the department, the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any other federal financial institution supervisory agency to provide any such regulatory entity or the fidelity bond carrier with any information regarding the appearance or suspicion of criminal activity involving any director, officer, agent, employee, or customer of such financial institution, such board of directors, director, or officer shall not incur any civil liability for providing such information unless the information is false and such board of directors, director, or officer knows that it is false and provides it with actual malice.

(Ga. L. 1919, p. 135, art. 20, § 37; Code 1933, § 13-9936; Code 1933, § 41A-9901, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1989, p. 1211, § 16; Ga. L. 1991, p. 1374, § 1; Ga. L. 2016, p. 390, § 5-1/HB 811; Ga. L. 2019, p. 828, § 30/HB 185.)

The 2019 amendment, effective July 1, 2019, in subsection (d), substituted "department, the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any other federal financial institution" for "department or the Federal Deposit Insurance Corporation, or any other federal bank" and substituted "entity" for "agency" near the middle.

RESEARCH REFERENCES

Am. Jur. 2d.

- 10 Am. Jur. 2d, Banks and Financial Institutions, § 429 et seq.

C.J.S.

- 9 C.J.S., Banks and Banking, §§ 11 et seq., 137.


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