Guidance for Responding to Law Enforcement Requests on Customer Information | CAMS Exam

Financial Action Task Force Guidelines for Bank Responses to Law Enforcement Requests

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Question

Law enforcement submitted a request to a bank for information regarding one of its customers.

How should the bank respond according to Financial Action Task Force Guidance?

Answers

Explanations

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A. B. C. D.

C

According to the Financial Action Task Force (FATF) guidance, when law enforcement submits a request for information regarding a bank customer, the bank should take the following steps:

B. Ensure that the request will not violate any local privacy regulations or legislation

Before responding to the request, the bank should ensure that it is compliant with all local privacy regulations and legislation. Banks are required to respect the privacy rights of their customers and cannot disclose customer information without following appropriate legal procedures. The bank must also consider the potential consequences of disclosure, such as reputational risks, before providing the requested information.

C. Ensure the information is necessary to the investigation before responding to the request

The bank should ensure that the information requested by law enforcement is necessary for the investigation. The bank should request clarification from the requesting agency if necessary to ensure that the information is relevant to the investigation.

D. Contact the customer informing the person of the investigation to ensure the bank provides correct information

In certain jurisdictions, banks may be required to notify their customers that their information has been requested by law enforcement. In such cases, the bank should inform the customer of the investigation to ensure that it provides the correct information. This notification may also be required by the bank's privacy policy.

A. Provide all information requested to support the investigation

Providing all information requested without ensuring compliance with local privacy regulations and legislation or ensuring the relevance of the information to the investigation may be a violation of the bank's legal and ethical obligations. Therefore, this answer is not correct according to the FATF guidance.