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Are banks required to give certain customer data to the federal government without their consent?

Wednesday, February 10, 2021
By Stevie Rosignol-Cortez
YES

U.S. banks are required to provide the federal government with reports of certain customers’ information irrespective of consent in compliance with the Bank Secrecy Act and the Patriot Act.

The Bank Secrecy Act requires U.S. banks to maintain customer records and create special reports involving financial transactions in order to monitor and detect money laundering, tax evasion, organized crime and terrorist activity.

The Patriot Act stipulates that the federal government may request customers’ financial information from a bank if there is evidence of money laundering or terrorist activity.

This is disclosed to customers when they open an account and accept the bank’s terms and conditions, on the bank’s website or orally by their banker. However, customer consent is not necessary when the information is being shared.

This fact brief is responsive to conversations such as this one.
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