CAMS · Question #310
A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The…
The correct answer is D. Provide the information to the law enforcement in response to a formal written request. The compliance officer should cooperate with the law enforcement investigation, but only after receiving a formal written request that specifies the scope and purpose of the information sought. This is to ensure that the compliance officer complies with the legal and regulatory…
Question
A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The law enforcement officer refers to a kiting suspicious transaction report filed by the compliance officer and requests further information. What action should the compliance officer take?
Options
- AInform the board of directors
- BCall the employee and demand an explanation
- CAllow access to the bank's documents immediately
- DProvide the information to the law enforcement in response to a formal written request
How the community answered
(31 responses)- A10% (3)
- B3% (1)
- C3% (1)
- D84% (26)
Explanation
The compliance officer should cooperate with the law enforcement investigation, but only after receiving a formal written request that specifies the scope and purpose of the information sought. This is to ensure that the compliance officer complies with the legal and regulatory obligations of the bank, such as confidentiality, privacy, and data protection. The compliance officer should also document the request and the information provided, and report the incident to the senior management and the board of directors as appropriate.
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