Lender Policies and Procedures for Subpoenas, Summons and Third-Party Demand Requests

Lender Policies and Procedures for Subpoenas, Summons and Third-Party Demand Requests

You are sitting in your office and a subpoena arrives from a state agency or a regulator – do you know what to do? Financial institutions receive numerous requests and demands for financial information from government agencies, regulatory bodies and private parties in matters both civil and criminal. While failure to comply with such demands poses substantial risks of civil and criminal penalties, financial institutions must be cognizant of the competing obligation to protect the privacy interests that their customers maintain in the financial information sought. It is critical for financial institutions to have policies and procedures in place for processing and responding to subpoenas, summons and third-party demands. This topic will provide lenders, their in-house counsel and outside counsel with best practices to employ in processing and responding to various demands for financial information. This material discusses the obligations of the lender to both the requesting party and its customers, and it further explains how lenders can identify its obligations and risks associated with compliance. This material will help you to understand how financial institutions can increase efficiency and reduce the risks of noncompliance, by implementing the appropriate policies and procedures in responding to third-party demands.

Learning Objectives