71. The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (FI) regarding one of the FI's clients. The LEA advises that the client is currently wanted for prosecution as a result of a series of human trafficking charges. What should the FI do? (Select Two.)
Answer: B,C
The financial institution should inform local LEA and regulator of the request for awareness and review the client's activity, determining if suspicious activity exists, and report accordingly.
The financial institution must prioritize communication with local law enforcement and regulators while also assessing the client's account activity for any suspicious behavior related to the human trafficking charges.
A) Advise the LEA that the government needs to be contacted for extradition.
This option is incorrect because the financial institution is not in a position to advise law enforcement agencies on legal actions such as extradition. The FI's role is to provide relevant information and cooperate with local authorities rather than suggest legal procedures.
B) Inform local LEA and regulator of the request for awareness.
This is a correct action for the financial institution to take. By informing local law enforcement and regulatory bodies, the FI ensures that relevant authorities are aware of the situation and can take appropriate steps to address any potential risks associated with the client.
C) Review the client's activity, determine if suspicious activity exists, and report accordingly.
This option is also correct. The financial institution has a responsibility to monitor its clients for suspicious activity, particularly in light of serious allegations such as human trafficking. Conducting a review and reporting any findings is crucial for compliance with anti-money laundering (AML) regulations.
D) Comply immediately with the foreign jurisdiction and turnover all client information.
This option is incorrect. The financial institution should not comply without proper legal authority or guidance from local law enforcement. Turning over all client information immediately could violate privacy laws and regulations unless specifically mandated by local authorities.
Conclusion
The correct actions for the financial institution involve informing local law enforcement and regulators, as well as reviewing the client's activity for suspicious behavior. Options B and C align with the institution's compliance obligations and ensure that appropriate authorities are involved, while the other options fail to recognize the legal and procedural responsibilities of the FI.