CAMS Question #352: Real Exam Question with Answer & Explanation

The correct answer is D. Consider retaining qualified, experienced legal counsel.. The best course of action for the FI in this scenario is to consider retaining qualified, experienced legal counsel. This is because the investigation request from the local law enforcement agency may involve complex legal issues, such as confidentiality, privacy, data protection

Question

A compliance officer at a financial institution (FI) received an investigation request for a customer from a local law enforcement agency. Which action should be taken by the FI?

Options

AObtain approval from the Financial Intelligence Unit (FIU) before submitting the customer's
BOmit some responses to meet the regulatory deadline.
CAssign employees responsible for the customer to the investigation team.
DConsider retaining qualified, experienced legal counsel.

Explanation

The best course of action for the FI in this scenario is to consider retaining qualified, experienced legal counsel. This is because the investigation request from the local law enforcement agency may involve complex legal issues, such as confidentiality, privacy, data protection, and cooperation obligations. The FI may need to balance the interests of the customer, the law enforcement agency, and the FI itself, and ensure that it complies with the applicable laws and regulations in responding to the request. The legal counsel can advise the FI on the scope, validity, and implications of the request, and help the FI to prepare and submit the required information in a timely and appropriate manner. The legal counsel can also protect the FI from any potential liability or litigation arising from the investigation.

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