The Independent Bankers Association of Texas (IBAT) is working with its members to implement new procedures mandated by legislation passed during the last session. This legislation creates an electronic notification system for their customers who are victims of identity theft, fraud or compromised financial information.

The legislation, which went into effect March 1, is known as Closed Account Notification System (CANS).

Under the law, sponsored by State Rep. Helen Giddings (D-Dallas), banks are required, upon request by a customer, to alert check verification entities that a customer has closed an account because of actual fraud or the compromising of financial data.

Every bank, savings bank and credit union maintaining an office in Texas is encouraged to enroll with the Texas Department of Banking, administrator of the new program, to use CANS. The new law, passed as HB 2002, requires both state and federal financial institutions to implement CANS if requested by their customer.

The Independent Bankers Association of Texas represents more than 2,000 banks and branches headquartered in Texas.