Which action should a financial institution take when it receives a grand-jury subpoena regarding a customer?

Question

Options

• AMake copies of the customer's documents and submit the originals to the enforcement agency.
• BNotify the customer being investigated before submitting documents.
• CKeep the customer's accounts open at the enforcement agency's verbal request.
• DHave the institution's assigned legal counsel review the subpoena.

• A
  14% (8)
• B
  7% (4)
• C
  5% (3)
• D
  75% (44)

Explanation

A financial institution should consult with its legal counsel before responding to a grand jury subpoena regarding a customer, as such subpoenas may involve complex legal issues and potential conflicts of interest. A grand jury subpoena is a legal order issued by a federal or state grand jury that compels a person or entity to produce documents, testify, or both, in connection with a criminal investigation. A financial institution that receives a grand jury subpoena should not disclose its existence or contents to the customer or any third party, unless authorized by law or the court, as doing so may constitute obstruction of justice or violate the secrecy rules of the grand jury. A financial institution should also assess and review all relevant information it has about the customer that is the subject of the subpoena, in accordance with its risk-based AML program, and consider filing a SAR if it identifies any suspicious activity.

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