Can we require that an individual give us 7 days advance notice in writing prior to cashing out a CD (early withdrawal)? We have a case where we believe an elderly individual may be getting pressure from a family member to cash out a CD (elder financial exploitation). We are taking appropriate steps with Health and Human Services, but just want to delay the withdrawal until proper investigation is done. Also, just for clarificaiton, we don't include the 7 day advance notice disclosure in the CD terms (similar to what we have in our MMDA terms).

No. The possibility of requiring a 7 day advance notice is connected to a different type of deposit and can only be invoked when banks are directed to do it by the Federal Reserve. It has nothing to do with your problem.

Regardless, I've seen banks cite that and every other cockamamie excuse under the sun in the circumstances you describe. At issue is whether you management will back you in taking a very small amount of risk just because it's the right thing to do.

Make sure you won't get your knees taken out from above before you do it.

Check your CD contract; however I don't think you are ever 'required' to give an early withdrawal. You may, but it's not required.

Skittles may have blazed a more secure path. As suggested read your certificate and your disclosure and see what it says about early withdrawals. You might be able to stretch the truth of that as well.

Note the possibility that if you've told Granny it can't be done for whatever reason, the family member may pose the question to one of your employees at another office without saying he's spoken to you.

There's a possibility that, pressed hard enough, I would simply tell the elderly person the truth and say I had contacted the state. There would be no mention of the SAR, but I'm thinking that might put a knot in the third party's noodle.

Thanks for all the guidance.

In what state was the CD opened? Some states have adopted statutes in the last few years to give banks the ability to refuse a transaction in suspected financial elder abuse cases if certain conditions are satisfied.