Which steps should the investigator take when fulfilling the request?

During transaction monitoring. Bank A learns that one of their customers. Med Supplies 123. is attempting to make a payment via wire totaling 382,500 USD to PPE Business LLC located in Mexico to purchase a large order of personal protective equipment. specifically surgical masks and face shields. Upon further verification. Bank A decides to escalate and refers the case to investigators. Bank A notes that, days prior to the above transaction, the same customer went to a Bank A location to wire 1,215,280 USD to Breath Well LTD located in Singapore. Breath Well was acting as an intermediary to purchase both 3-ply surgical masks and face shields from China. Bank A decided not to complete the transaction due to concerns with the involved supplier in China. Moreover, the customer is attempting to send a third wire in the amount of 350,000 USD for the purchase of these items, this time using a different vendor in China. The investigator must determine next steps in the investigation and what actions, if any. should be taken against relevant parties.

During the investigation, Bank A receives a USA PATRIOT Act Section 314(a) request related to Med Supplies 123.

Which steps should the investigator take when fulfilling the request? (Select Three.)

A. Exit the relationship with the business since it appears that customer is under investigation.

B. Do not respond to Financial Crimes Enforcement Network (FinCEN) if the requested information is not present in the financial institution’s system of records.

C. Review the account(s) activity and proactively file a SAR/STR using the 314(a) request as the basis for the filing.

D. Report to Financial Crimes Enforcement Network (FinCEN) that a match was found without revealing any other details.

E. Report back to the Financial Crimes Enforcement Network (FinCEN) within 15 days of receipt of the request via a secure internet website.

F. Search its records expeditiously to determine whether it maintains(ed) any accounts for the subject(s) listed in the request.

View Answer

Answer: D, E, F

Explanation:

According to the FinCEN’s 314(a) Fact Sheet1, the steps that the investigator should take when fulfilling the request are:

Search its records expeditiously to determine whether it maintains(ed) any accounts for the subject(s) listed in the request.

This is option F.

Report back to the Financial Crimes Enforcement Network (FinCEN) within 15 days of receipt of the request via a secure internet website.

This is option E.

Report to Financial Crimes Enforcement Network (FinCEN) that a match was found without revealing any other details.

This is option D.

The other options are incorrect because:

Exiting the relationship with the business since it appears that customer is under investigation is not required by the 314(a) program and may interfere with law enforcement’s investigation. This is option A.

Not responding to Financial Crimes Enforcement Network (FinCEN) if the requested information is not present in the financial institution’s system of records is contrary to the 314(a) program, which requires financial institutions to respond whether or not they have a match. This is option B.

Reviewing the account(s) activity and proactively filing a SAR/STR using the 314(a) request as the basis for the filing is not appropriate, as the 314(a) request itself is not a sufficient reason to file a SAR/STR. The financial institution should only file a SAR/STR if it has its own independent suspicion of money laundering or terrorist financing.

This is option C.

Reference: 1: FinCEN’s 314(a) Fact Sheet