CAMS · Question #480
The recommended way lot a financial institution to respond to a request from a law enforcement agency is to:
The correct answer is D. have an audit trail system to produce requested documentation. Financial institutions are required by law to maintain records and documentation of customer transactions and to provide this information to law enforcement agencies upon request. However, financial institutions should also have policies and procedures in place to ensure that…
Question
The recommended way lot a financial institution to respond to a request from a law enforcement agency is to:
Options
- Atrain all staff to enable them to respond to subpoenas.
- Bhand over documents that are protected by attorney-client privilege
- Cfreeze the identified account immediately
- Dhave an audit trail system to produce requested documentation
How the community answered
(30 responses)- A7% (2)
- B13% (4)
- C3% (1)
- D77% (23)
Explanation
Financial institutions are required by law to maintain records and documentation of customer transactions and to provide this information to law enforcement agencies upon request. However, financial institutions should also have policies and procedures in place to ensure that they comply with legal and regulatory requirements and protect customer privacy. Providing protected documents that are privileged under attorney-client privilege or freezing an account immediately may not be the appropriate response and may expose the financial institution to legal or reputational risks.
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