Establishes standards for the closure of banking accounts in the state of New York

◆ The sponsor's argument

Why James Sanders Jr. says this is needed

Last year, 1.5 million bank customers had their checking or savings accounts closed without prior notice-and for no apparent reason. Under the guise of "suspicious activity," banks are closing accounts more out of fear of upsetting regulators than actual proof of laundering and other illegal activities. These unexpected account closings can wreak havoc with one's credit rating, cause checks to bounce and create other problems that did not exist before. Due to these unexpected bank account closings, individuals and businesses have had their reputations, which took years to build in their local community, severely damaged. Unexpected bank account closings causes businesses to bounce checks to employees and suppliers, which in turn causes the recipients of these checks to bounce their own checks. By giving adequate notice, account owners will have sufficient time to make arrangements with another bank, avoiding disruptions to their financial well-being and to those they deal with. This bill will help address problems from unexpected bank account closings.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.