No, a bank that operates exclusively in Illinois does not need to be knowledgeable of other states’ laws to participate in multistate data matching for unpaid child support.

The newly amended DHFS agreement for FIDM services does not require financial institutions to impose in-state or out-of-state liens; it only calls for them to provide data to the Illinois DHFS and then respond to liens or levies once they are received from Illinois or one of the other participating states. However, the updated DHFS agreement does require a financial institution to provide the DHFS with its contact information, including the address where it accepts service of liens and levies.

Notably, while a financial institution participating in multistate data matching may result in an increase in matches and therefore liens imposed on accounts, it is not the financial institution’s responsibility to impose these liens — only to comply with them once they are received.

For resources related to our guidance, please see:

• Illinois Public Aid Code, 305 ILCS 5/10-24.50 (“A financial institution that provides information under Sections 10-24 through 10-24.50 shall not be liable to any account holder, owner, or other person in any civil, criminal, or administrative action for any of the following:

(1) Disclosing the required information to the Illinois Department, any other provisions of the law notwithstanding.

(2) Holding, encumbering, or surrendering any of an individual’s accounts as defined in Section 10-24 in response to a lien or order to withhold and deliver issued by: (A) the Illinois Department under Sections 10-25 and 10-25.5; or (B) a person or entity acting on behalf of the Illinois Department.

(3) Any other action taken or omission made in good faith to comply with Sections 10-24 through 10-24.50, including individual or mechanical errors, provided that the action or omission does not constitute gross negligence or willful misconduct.”)

• Illinois Public Aid Code, 305 ILCS 5/10-24.40(b) (“If the Illinois Department takes any action to enforce a lien or levy imposed on an account, as defined in Section 10-24, under Section 10-25.5, the financial institution at which the account is maintained may charge to the account a fee of up to $50 and shall deduct the amount of the fee from the account before remitting any moneys from the account to the Illinois Department.”)