New rules protecting federal benefits from garnishment establish the procedures by which financial institutions must identify and protect those benefit payments from freezing and garnishment. 31 CFR 212.6. These procedures require banks to perform an account review within two days of being served with the garnishment notice to locate benefit payments made within the lookback period of two months. 31 CFR 212.5.

However, if the United States or a State child support enforcement agency is demanding garnishment, it may attach a “Notice of Right to Garnish Federal Benefits.” (The term “United States” includes, among other entities, “[a]n agency, department, commission, board, or other entity of the United States.” 31 CFR 212.3.) If that notice is attached, the bank does not have to perform an account review and can proceed under its “otherwise customary procedures for handling the order.” 31 CFR 212.4(b). If the garnishment order does not include the Notice of Right to Garnish Federal Benefits, the bank must follow the special procedures in Sections 212.5 and 212.6 to protect federal benefit payments during the lookback period. 31 CFR 212.4(c).