Question 86

A financial institution should have its assigned legal counsel review the subpoena.

This step ensures that the institution is taking appropriate legal measures in response to the grand-jury subpoena, safeguarding both the institution and the customer’s rights.

A) Keep the customer's accounts open at the enforcement agency's verbal request

This option is incorrect because complying with a verbal request from an enforcement agency without proper legal guidance could lead to legal complications. The institution must adhere to legal protocols and ensure that it is following appropriate procedures as outlined by legal counsel.

B) Have the institution's assigned legal counsel review the subpoena

This option is correct as it provides a necessary legal safeguard for the financial institution. Reviewing the subpoena with legal counsel allows the institution to understand its obligations and rights, ensuring compliance with the law while also protecting customer confidentiality and the institution’s interests.

C) Make copies of the customer's documents and submit the originals to the enforcement agency

This option is incorrect because submitting original documents without legal review may violate customer privacy and could potentially lead to legal repercussions. It is essential for the institution to consult legal counsel before taking any action regarding customer documents.

D) Notify the customer being investigated before submitting documents

This option is incorrect as notifying the customer prior to submitting documents may compromise the investigation and violate legal protocols. A financial institution should avoid taking actions that could interfere with law enforcement procedures, which is why legal counsel's guidance is crucial.

Conclusion

Having legal counsel review the subpoena is vital for ensuring that the financial institution acts within legal boundaries while safeguarding the interests of both the institution and the customer. The other options either pose risks of non-compliance or jeopardize the integrity of the investigation, underscoring the importance of legal oversight in such situations.