When Law Enforcement Asks the Bank to Keep that Sleazy Account Open

FinCEN has provided Guidance about how financial institutions should handle Requests by Law Enforcement for Financial Institutions to Maintain Accounts (FIN-2007-G002 - June 13, 2007).

The Guidance recognizes that the decision to maintain or close accounts should be made by the financial institution in accordance with its own standards and guidelines.  However, the Guidance reminds institutions that maintaining a suspicious account may allow law enforcement to gather crucial evidence to pursue action to counter money laundering, terrorist financing or other illegal activities.  The Guidance also advises financial institutions to get the request in writing and for a specified duration.  If the institution decides to honor the law enforcement request to keep the account open, it must still comply with all BSA requirements, including filing SARS.

Link:  http://www.fincen.gov/Maintaining_Accounts_Guidance.pdf

(ag) June 19, 2007, in BSA/AML