Protecting Suspicious Transaction Report Information | WebsiteName

Protecting Suspicious Transaction Report Information

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Question

A banker in the credit department wants to assess the risk of all customers, and contacts the compliance officer to request a list of customers with suspicious transaction report filings.

What should be done to protect suspicious transaction report information?

Answers

Explanations

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A. B. C. D.

C

The correct answer is B. Decline to provide the suspicious transaction report information to the credit department.

Explanation: The suspicious transaction report (STR) contains sensitive and confidential information related to potential or actual money laundering or terrorist financing activities. Therefore, the disclosure of STR information must be strictly controlled and limited only to authorized individuals or entities.

In this scenario, the banker in the credit department has requested access to the STR information to assess the risk of customers. However, it is not appropriate to disclose such confidential information to individuals who are not authorized or who do not have a legitimate need to know.

Providing STR information to the credit department could result in a breach of confidentiality, reputational harm, or legal liability for the financial institution. Therefore, the correct course of action is to decline to provide the STR information and explain the reasons for this decision to the banker in the credit department.

Financial institutions should have clear policies and procedures for handling STR information, including the criteria for determining who can access the information, the circumstances under which it can be disclosed, and the measures in place to protect the confidentiality of the information.

It is also important to provide regular training to employees on the proper handling of STR information and to maintain appropriate documentation of all STR-related activities to demonstrate compliance with relevant laws and regulations.