A bank receives a request for a subpoena (or a client who has been the subject of monitoring for several months. The bank wishes to close the account in order to mitigate any additional risk…

Question

Options

• AAn email agreement between the government and the financial institution to keep the account
• BA request in writing under proper letterhead and authority from the government
• CAn order to keep the account open but with the funds frozen
• DAn authorization from the board of directors

• A
  8% (4)
• B
  71% (34)
• C
  4% (2)
• D
  17% (8)

Explanation

If a financial institution wishes to close an account due to concerns about potential money laundering or other financial crimes, it is generally required to file a suspicious activity report (SAR) with the appropriate government agency. However, there may be instances where the government requires the account to remain open for ongoing investigation purposes. In such cases, the government must provide a written request under proper letterhead and authority to keep the account open. This document will serve as legal justification for the financial institution to maintain the account, even though it may pose a higher risk for money laundering or other financial crimes.

No community discussion yet for this question.