CAMS · Question #410
When an institution conducts an internal investigation into an account following a law enforcement inquiry, it should consider a number of factors to independently determine if the account should be…
The correct answer is A. The institution's policies and procedures for closing an account B. Oral requests by a law enforcement agency or prosecutor for the account to be dosed C. signed written requests by a law enforcement agency or prosecutor on official letterhead for the. When determining whether to close an account following a law enforcement inquiry, institutions rely on their own policies and both oral and written law enforcement requests - not on independently judging the severity of the underlying crime.
Question
When an institution conducts an internal investigation into an account following a law enforcement inquiry, it should consider a number of factors to independently determine if the account should be dosed. Which three considerations should be made when making the determination about closing an account? Choose 3 answers
Options
- AThe institution's policies and procedures for closing an account
- BOral requests by a law enforcement agency or prosecutor for the account to be dosed
- Csigned written requests by a law enforcement agency or prosecutor on official letterhead for the
- DThe level of seriousness of the underlying conduct
How the community answered
(20 responses)- A80% (16)
- D20% (4)
Why each option
When determining whether to close an account following a law enforcement inquiry, institutions rely on their own policies and both oral and written law enforcement requests - not on independently judging the severity of the underlying crime.
An institution's own policies and procedures for account closure provide the internal governance framework that ensures decisions are consistent, documented, and defensible within its compliance program.
Oral requests from law enforcement or prosecutors are a recognized factor because timely cooperation may be needed before a formal written request is practicable, and such requests carry official weight.
Signed written requests on official letterhead create a formal, documented legal basis for account closure, protecting the institution and establishing a clear record of the rationale.
Independently assessing the legal seriousness of underlying criminal conduct falls outside the institution's role; that determination belongs to law enforcement and prosecutors, not the financial institution.
Concept tested: Account closure factors after law enforcement inquiry
Source: https://bsaaml.ffiec.gov/manual/AssessingComplianceWithBSARegulatorRequirements/18
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