AML compliancemust be balanced with data privacy laws, includingGDPR (EU), CCPA (U.S.), and banking secrecy regulations.
Option A (Correct):FIUsmust documentwhy and how personal data in SARs is shared with law enforcement or regulators.
Option B (Incorrect):SAR subjects cannot request redaction—SARs are confidential to avoid "tipping off" the suspect.
Option C (Incorrect):Many jurisdictions allow AML-related information sharing, particularlyunder FATF guidance.
Option D (Incorrect):SARsdo not require customer consent—they are filed based on legal obligations.
Key Data Privacy Considerations in AML Investigations:
GDPR Article 6permits data processing for AML compliance.
Banking secrecy laws have exemptions for AML disclosures.
FIUs must document SAR handling procedures for legal compliance.
Best Practices for Managing Data Privacy in AML:
Limit data collection to what is necessary for AML compliance.
Ensure SAR information is only shared with authorized agencies.
Comply with local and international data privacy laws.
[Reference:, FATF Recommendation 2 (National Cooperation in AML), General Data Protection Regulation (GDPR) Compliance for AML, 6th EU AML Directive (6AMLD) on SAR Confidentiality, , , , ]
