A bank receives a request for a subpoena for 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. However, the government requires that the account remain open. What document must be provided to the bank to keep the account open?
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A. B. C. D.A
In the given scenario, the bank has received a request for a subpoena for a client who has been under monitoring for several months. The bank wishes to close the account to mitigate any additional risk, but the government requires that the account remain open. To comply with the government's requirement and keep the account open, the bank must obtain a specific document.
The correct answer to the question is B. A request in writing under proper letterhead and authority from the government.
Explanation: In situations where a government authority requests a financial institution to keep an account open despite the bank's intention to close it, a written request under proper letterhead and authority from the government is typically required. This request serves as evidence that the government has authorized the account to remain open.
A formal written request from the government is essential because it provides a clear and documented instruction for the bank to follow. The request should be on official letterhead to ensure its authenticity and should come from an authorized government representative or agency. This helps the bank validate the legitimacy of the request and ensures that they are complying with legal and regulatory requirements.
Option A, an authorization from the board of directors, is not the appropriate document in this situation. While board approval may be necessary for certain decisions within a bank, it does not hold the same weight as a request from a government authority. The government's requirement supersedes internal bank decisions in cases involving law enforcement or regulatory compliance.
Option C, an email agreement between the government and the financial institution to keep the account open, may not be sufficient on its own. Emails, although they can be used as supporting evidence, may not carry the same level of formality and authority as a written request on official letterhead. Additionally, an email agreement may be prone to misunderstandings or disputes, whereas a formal written request provides a clearer directive.
Option D, an order to keep the account open but with the funds frozen, is not in line with the scenario. The question states that the government requires the account to remain open, without mentioning any freezing of funds. If the funds were required to be frozen, it would be stated explicitly, and the bank would need to comply with that requirement while keeping the account open.
To summarize, in order to keep the account open as per the government's requirement, the bank should obtain a written request under proper letterhead and authority from the government. This document serves as the official directive and ensures the bank's compliance with legal and regulatory obligations.