hypothetical: you have a postive match from the 314-a list and the bank is considering making a loan to this customer. Considering that you will report back the positive match and wait on pins and needles for the possible Subpoena or NSL and due to the confidentiality of the list.. Other than monitoring the customer's activity for suspicious transactions, filing a SAR if you find anything suspicious and making sure the loan is done correctly....what can be done to protect the bank in the near future specially where the loan is concerned?

From exam manual:

While the section 314(a) subject list could be used to determine whether to establish or maintain an account, FinCEN strongly discourages financial institutions from using this as the sole factor in reaching a decision to do so unless the request specifically states otherwise. Unlike the OFAC lists, section 314(a) subject lists are not permanent “watch lists.” In fact, section 314(a) subject lists generally relate to one-time inquiries and are not updated or corrected if an investigation is dropped,

Since this is a loan as opposed to a deposit account, what would you use as your reason for Adverse Action should you decide not to make the loan?

Thanks for the quick response. I saw that but I'm still nervous........

That's the issue. We can't use what we don't know.

Since you can't decline a loan using the reason "Your name was listed on a highly confidential government list of money laundering and terrorist suspects", barring any other reason that you could legitimately decline the loan, you would make the loan and immediately put the customer's name on your high risk list and monitor the account for suspicious activity.

Almost forgot - report the match to FinCEN! You could also try Google-searching the customer's name for any other Enhanced Due Diligence info.

Thanks PR. I think I got everything covered. I'm hoping everything works out. It just gives me the wiggins, you know?