An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a…

Question

Options

• AThe anticipated cost of complying with the law enforcement request
• BThe number of suspicious transaction reports previously filed on the client
• CThe fact that the institution has a solid record in complying with law enforcement requests
• DWhether the institution can continue to meet its regulatory obligations with the accounts open

• A
  5% (3)
• B
  3% (2)
• C
  15% (9)
• D
  77% (47)

Explanation

The primary consideration the institution should keep in mind when deciding whether to agree to the law enforcement request is whether the institution can continue to meet its regulatory obligations with the accounts open. This is because the institution has a duty to comply with the applicable laws and regulations, and to protect its reputation and integrity from being associated with money laundering or terrorist financing. The institution should assess the risks and benefits of keeping the account open, and consult with its legal counsel and senior management before making a decision. The institution should also document its decision and the rationale behind it, and communicate it to the law enforcement agency.

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