CAMS · Question #998
A financial institution's US Branch receives a subpoena from law enforcement requesting detailed records of a customer's account activity. The customer is part of an ongoing investigation into a…
The correct answer is B. Consult the institution's legal counsel to validate the subpoena, then respond directly to law. B: When a subpoena is received, the institution should first consult with legal counsel to ensure the validity and scope of the subpoena. Compliance with law enforcement requests is mandatory and subject to strict legal obligations. All documentation and responses should be…
Question
A financial institution's US Branch receives a subpoena from law enforcement requesting detailed records of a customer's account activity. The customer is part of an ongoing investigation into a money laundering operation. At the same time, the institution has received a FinCEN 314(b) information-sharing request from another bank seeking details on transactions linked to the same customer. The compliance team is tasked with responding to both the subpoena and the FinCEN 314(b) request. What should the compliance officer prioritize in responding to these requests while ensuring that all legal and regulatory obligations are met?
Options
- ANotify the customer of the information-sharing request from the other financial institution and seek
- BConsult the institution's legal counsel to validate the subpoena, then respond directly to law
- CRespond to the FinCEN 314(b) request first, as it allows for voluntary information sharing with
- DProvide the requested records to both law enforcement and the other financial institution
How the community answered
(27 responses)- A4% (1)
- B74% (20)
- C7% (2)
- D15% (4)
Explanation
B: When a subpoena is received, the institution should first consult with legal counsel to ensure the validity and scope of the subpoena. Compliance with law enforcement requests is mandatory and subject to strict legal obligations. All documentation and responses should be properly "A subpoena requires a legal response; consult legal counsel to validate the request and respond as required by law." FinCEN 314(b) information-sharing requests are voluntary and can proceed only after fulfilling required legal steps, such as verifying membership in the program and ensuring information- sharing agreements are in place. CAMS 6th Edition clarifies that "under no circumstances should a customer be notified of a law enforcement inquiry or subpoena."
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