Answer:
Aside from the delima you would be in about what to do if you got a "hit," they specifically asked you not to do that. The original instructions said it was not necessary and they repeated the observation in the Updated (12/04) instructions:
16. After conducting the one-time search of its records, does a financial institution have any further responsibilities concerning the named subjects?
Unless noted otherwise in a 314(a) request, a financial institution is not required by the request to close any account or take any other action with respect to an account or a transaction by virtue of a match with any named subject. A financial institution also should not maintain the attached list of named subjects for the purpose of evaluating whether to open an account or to conduct a transaction, unless the 314(a) request clearly states that the subject list should be treated as a government list for purposes of section 326 of the USA PATRIOT Act, Public Law 107-56. Section 314(a) lists are not official U.S. designations such as the OFAC list, but are names of persons under investigation. Therefore, FinCEN strongly encourages financial institutions not to maintain a 314(a) list for the purposes of determining whether to open an account or conduct a transaction, except where the instructions to a 314(a) request state otherwise.
It could not be cited as a "violation," but the examiners' response might border on incredulity.
First published on BankersOnline.com 5/16/05
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