Disclosure of Supporting Documentation for Suspicious Transaction Report | ACAMS Exam Answer

Importance of Disclosing Supporting Documentation to Law Enforcement | CAMS Exam Answer

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Question

What is true regarding disclosure to a law enforcement agency by a financial institution of the supporting documentation for a suspicious transaction report?

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Explanations

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A. B. C. D.

C

https://www.sec.gov/about/offices/ocie/aml2007/fin-2007-g003.pdf

The disclosure of supporting documentation for a suspicious transaction report to a law enforcement agency by a financial institution must be handled carefully, and there are certain requirements that must be met.

A. Documentation must be provided as quickly as possible using email: This answer is not entirely accurate. While providing documentation as quickly as possible is important, email may not always be the most secure method of transmitting sensitive information, and the financial institution should consider using a more secure method of delivery, such as a secure file transfer protocol (SFTP) or encrypted messaging system.

B. The financial institution may notify the account holder of the request: Financial institutions are generally prohibited from disclosing the existence of a suspicious transaction report or any related investigation to the account holder or any third party. Therefore, the financial institution cannot notify the account holder of the request for supporting documentation by law enforcement without jeopardizing the investigation.

C. Confirm that the request originated from a representative of the law enforcement agency: The financial institution must confirm that the request for supporting documentation came from a legitimate representative of a law enforcement agency before providing any documentation. This can be done by contacting the agency directly to verify the request and the identity of the requesting agent.

D. A copy of all the documentation released must also be provided to the account holder's attorney: Financial institutions are not required to provide a copy of the supporting documentation to the account holder's attorney, as this could potentially interfere with the investigation. However, if the account holder requests a copy of the documentation under the Freedom of Information Act (FOIA) or another applicable law, the financial institution may be required to comply with the request.

In summary, the correct answer to the question is C. Before providing any supporting documentation to a law enforcement agency, a financial institution must confirm that the request came from a legitimate representative of the agency. The other answer choices provided are not entirely accurate or are not required by law.