The Bank's Actions When Law Enforcement Requests Customer Information

CD

When a local law enforcement officer requests information about a customer in the context of a criminal investigation, the bank should take two actions:

1. Review the money laundering risk posed by the account: The bank should review the account in question to determine the level of risk it poses in terms of money laundering. The bank should consider the customer's transaction history, account activity, and any other relevant factors that may indicate that the account is being used for money laundering or other criminal activity.

2. Provide information to the law enforcement officer: If the bank determines that there is a legitimate reason for law enforcement to access information about the customer's account, it should provide the requested information in a timely and accurate manner. The bank should also ensure that it complies with any legal or regulatory requirements regarding the sharing of customer information.

The other two options are not appropriate in this scenario:

A. Close the account immediately: There is no indication that the account in question should be closed. Closing an account without a legitimate reason could be seen as suspicious and could potentially hinder the criminal investigation.

B. File a suspicious transaction report: Unless the bank has identified suspicious activity on the account, there is no reason to file a suspicious transaction report. Such reports should only be filed when there are reasonable grounds to suspect that a transaction is related to money laundering or other criminal activity.

C. Monitor the account for suspicious activity: Again, unless the bank has identified suspicious activity on the account, there is no reason to monitor it for such activity. Monitoring should only be undertaken when there are reasonable grounds to suspect that an account is being used for money laundering or other criminal activity.