What Financial Institutions Should Know Before Answering That Subpoena

by Timothy W. Grooms |

“This article encompasses customers’ privacy rights and a financial institution’s obligation to answer a subpoena and when it is necessary and safe to do so. There are three acts of importance with this issue. First, is the Gramm-Leach-Bliley Act that provides financial customers with the right to privacy regarding nonpublic personal information held at a financial institution. Second, is the Right to Financial Privacy Act which provides financial customers with the right to be informed by the government before it obtains nonpublic information from the financial institution. Third, is the USA PATRIOT Act (“the Patriot Act”) which was enacted after the attacks of September 11, 2001, to strengthen anti-terrorism and the Annunzio-Wylie Anti-Money Laundering Act. The Patriot Act allows the government to obtain personal information about a financial institution’s customers without the customer knowing or having any right to be informed that a suspicious activity report was made or requested.”

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