What should financial institutions do prior to actioning a subpoena for a customer's account?

The correct approach for financial institutions when dealing with a subpoena for a customer's account is to comply with the subpoena without delay. Subpoenas are legal documents that require the recipient to provide records or testimony in connection with a legal proceeding. Financial institutions have a legal obligation to honor requests from law enforcement or courts as specified by the subpoena, provided it is properly issued and within legal parameters.

Timely compliance ensures that the institution adheres to legal requirements and avoids potential penalties for non-compliance. This prompt action is essential in maintaining the integrity of the legal process and supporting the investigation or proceedings related to the subpoena.

The other options, such as notifying the customer before compliance or providing an opt-out, generally do not align with legal requirements regarding subpoenas. In many cases, notifying the customer could hinder an investigation or violate the terms of the subpoena itself. Therefore, complying without delay is crucial for legal adherence and operational protocol in financial institutions.