Receiving Court Production Orders | CAMS Exam Preparation

C

When a financial institution (FI) receives a court production order from law enforcement, it should be responsive and provide customer information as per the requirements of the order. The FI should also be able to provide information from branches and subsidiaries if necessary.

Answer option A, which suggests providing pseudonymized customer information, is not necessarily sufficient in response to a court production order. The order typically requires the FI to provide specific customer information, which may include personally identifiable information. Providing pseudonymized data may not meet the requirements of the order and may not be considered compliant with data privacy regulations.

Answer option C, which suggests raising the matter with the Data Protection Officer to ask for data exchange approval prior to sharing the customer's personal data with law enforcement, is also not a recommended approach. A court production order is a legally binding request, and the FI is required to comply with it. Consulting with the Data Protection Officer to seek approval to share customer data would not be an appropriate response to such an order.

Answer option D, which suggests raising the matter with the Board to ask for data exchange approval and including corporate lawyers to make sure there is a legal basis for such exchange, is also not the best approach. The FI is legally obligated to comply with the court production order, and seeking approval from the Board and involving corporate lawyers may cause delays and impede timely compliance with the order.

In summary, the correct answer is option B, which suggests being responsive and providing customer information and being able to provide information from branches and subsidiaries if necessary. The FI should also ensure that the information provided is accurate and complete, as failing to comply with the order may result in legal and regulatory consequences.