When conducting a records search pursuant to a FinCEN request, what must a bank search?
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A. B. C. D.B
The correct answer is B: All accounts maintained within the previous 12 months and transaction records for 6 months.
The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury that is responsible for collecting and analyzing information related to financial transactions to combat money laundering, terrorist financing, and other financial crimes. When FinCEN suspects that a bank or financial institution is involved in such activities, it may issue a request for information, also known as a FinCEN request, asking the bank to conduct a search of its records.
When conducting a records search pursuant to a FinCEN request, the bank must search all accounts that it has maintained within the previous 12 months. This includes not only active accounts but also closed accounts that were open during the specified time frame. In addition to searching the account records, the bank must also search transaction records for the previous 6 months for each account. This means that the bank must review all transactions that occurred within the specified time frame, including deposits, withdrawals, transfers, and any other activity that took place in the account.
It's important to note that the bank must conduct a thorough search and provide all relevant information in response to a FinCEN request. Failure to comply with such a request may result in regulatory action and penalties. Furthermore, banks are required to maintain records of their transactions and customer information for a certain period of time as specified by regulations. These records should be readily available for examination and search by regulatory agencies as needed.
Therefore, Option D is incorrect because a bank is required to comply with a FinCEN request, and the answer option C is incorrect because banks must search all relevant records, whether they are in electronic or paper format. Option A is also incorrect because the bank must only search accounts maintained within the previous 12 months, not the previous 5 years.