Subpoena - Customer Notification

Question:

If we receive subpoenas from municipal and government agencies, are we required to notify out customers that an agency is looking at their accounts?

Answer:

Any prohibition on or requirement to notify the customer is a function of state or local law. Your best reading resource would be the document you received or a review of the statute that authorized the governmental entity to send the subpoena.

In general, banks oftentimes forward copies of demands for funds or information to the customer as a courtesy, not as a requirement. Obviously, they do not forward such things as grand jury subpeonas, national security letters, or any other demand for information that they are flatly prohibited from disclosing to the individual.

First published on BankersOnline.com 3/01/10