Nebraska Governor Jim Pillen approved LB 838 on April 14, 2026, strengthening Nebraska’s existing authority for addressing suspected financial exploitation of vulnerable and senior adults. The law gives community banks clearer authority to contact a customer’s designated authorized contact when exploitation is suspected, expands the transactions covered by the statute, and provides additional liability protections for financial institutions acting under the statute.

One of the most significant changes is the addition of an authorized contact option. Banks may contact a customer’s designated authorized contact in situations permitted by the law, including suspected financial exploitation. LB 838 also expands the transactions covered by the statute, including transfers of funds, requests to negotiate checks or other negotiable instruments, changes in account ownership or access, loan advances and other extensions of credit, property encumbrances, and beneficiary changes. The law provides additional good-faith liability protections for financial institutions that act in accordance with the statute.

Community banks should review their elder financial exploitation procedures to ensure staff understands when transactions may be delayed, refused, escalated, or documented. Institutions should also consider whether account-opening documents should be updated to include an authorized contact designation and provide training on exploitation red flags and escalation expectations.

You can access Nebraska Legislature LB 838 here.

CCI suggests sharing this with your BSA/AML/CFT Officer, operations, deposit staff, and senior management. If you have any questions regarding this information, you can contact us via inquiries@completecompli.com.