When a bank receives a subpoena, what two steps should the compliance officer take?

• A. The compliance officer should collect documents responsive to the subpoena.
• B. The compliance officer should request an explanation for the subpoena.
• C. The compliance officer should ensure independent account reviews are conducted.
• D. The compliance officer should get legal counsel approval before compliance.

Answer: (A)

When a bank receives a subpoena, the compliance officer’s first step is to collect documents that are responsive to the subpoena. This action is essential because the subpoena is a formal request for information or documents that are required to comply with a legal investigation or court order. Promptly gathering the requested documents ensures that the bank meets the legal deadline and demonstrates cooperation with law enforcement or regulatory authorities. This is a fundamental aspect of compliance and risk management within the banking system, as failing to respond appropriately could lead to legal repercussions.

In addition to this primary task, involving legal counsel can be critical in guiding the approach to compliance with the subpoena. However, the focus here is correctly on the immediate step of document collection, as it's a direct and necessary response to the subpoena. Thus, the response is being proactive in fulfilling the legal obligations of the institution while also ensuring that all responsive information is gathered and organized for review and submission.