Guidelines for Financial Institutions on Law Enforcement Requests

BDE

When a financial institution (FI) receives a request from law enforcement to keep an account open due to a criminal investigation, the FI needs to take certain steps to comply with the request while still fulfilling its obligations to its customer and regulatory authorities. The following are the steps that an FI should take in this situation:

1. Ask for written documentation of the request: The FI should ask for written documentation of the request from law enforcement to keep the account open. This request should be in writing and should specify the duration of the request. This documentation will be needed to demonstrate that the FI is complying with the law enforcement request.

2. Freeze the account to prevent the customer from transferring the funds out: The FI should freeze the account to prevent the customer from transferring the funds out while the investigation is ongoing. This will prevent the customer from taking any action that could compromise the investigation.

3. Maintain documentation of such requests for at least five years after the request has expired: The FI should maintain documentation of the law enforcement request for at least five years after the request has expired. This documentation should include a copy of the written request, any correspondence related to the request, and any actions taken by the FI in response to the request.

Therefore, the correct answers are B, C, and D.

Answer A is incorrect because informing the customer that the account is under investigation by law enforcement could compromise the investigation. Answer E is also incorrect because law enforcement should indicate the duration for the request, and the FI should comply with it. Answer F is incorrect because a SAR/STR should only be filed if there are suspicious transactions related to the account, not solely based on a law enforcement request.