The Shell Company Employee
You are an investigator at a mid-sized bank. A junior relationship manager, Priya, opened 14 accounts in eight months for companies sharing the same registered address, a virtual office suite. All were introduced by the same third-party agent. One company received $750,000 in invoice payments from three overseas companies, then transferred $690,000 to two suppliers in a high-risk jurisdiction. Internal records show Priya waived enhanced due diligence for 9 of the 14 accounts, and the agent paid for her conference travel. Law enforcement has served a subpoena for records on three of the accounts, with a return date in 10 days. You are planning an internal interview with Priya, who is not suspected of a crime but may have violated policy.
1. What sequencing and legal issues arise between the internal interview and the law enforcement subpoena?
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Sequence preservation before conversation. First issue a legal hold and preserve all records for the three subpoenaed accounts and the other 11 linked accounts: onboarding files, emails, chat messages, agent correspondence, travel records, and access logs. The subpoena return date is 10 days away, so legal must control the response.
Do not tip off Priya about the subpoena. Disclosing it could compromise the law enforcement inquiry and create an obstruction risk. The internal interview should be framed as a policy and control review, not as a preview of the subpoena.
Coordinate with legal and human resources. Confirm whether the interview should proceed before or after the subpoena response, who attends, and whether Priya is entitled to representation under policy. The interview is internal and voluntary; she should not be threatened with criminal referral or told she must answer.
Keep the two tracks separate: the subpoena response is a legal production; the internal interview is an employment and control investigation. Information from the interview can inform the case file, but it should not be used to alter subpoenaed records.
Reasoning: the bank must comply with law enforcement without obstructing justice and must investigate internally without turning the interview into a coercive interrogation. Sequencing and documentation protect both objectives.
2. Design an interview outline for Priya: objectives, opening, key questions, and closing.
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Objectives: understand how the 14 accounts were introduced, why enhanced due diligence was waived in 9 cases, what Priya knew about the shared address and ownership, and whether the agent's travel payment influenced her decisions.
Opening: explain that this is an internal policy review, not a criminal interview; that she is expected to cooperate; that the bank prohibits retaliation; and that she may consult HR or her representative under policy. Confirm she understands and ask if she needs a break.
Key questions:
- How did you meet the agent, and what was the introduction arrangement?
- What did you understand enhanced due diligence to require, and what training did you receive?
- For each waived account, what documents did you review before waiving?
- Who verified the registered address and beneficial ownership?
- Why do 14 companies share a virtual office address?
- Did the agent pay for travel, and was it approved under the gifts and entertainment policy?
- Did anyone pressure you to open or expedite the accounts?
- What red flags did you notice, and what did you do about them?
Closing: ask for any documents she wants considered, explain next steps, instruct her not to discuss the interview with the agent or account holders, and confirm record preservation.
Reasoning: the outline moves from background to specific decisions, giving Priya a chance to explain before conclusions are drawn. It avoids accusations and focuses on policy, knowledge, and influence.
3. After the interview, what information can you share with law enforcement, and what should you withhold?
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Share within the legal framework: factual records responsive to the subpoena, such as account opening documents, statements, wire details, ownership information, and agent correspondence. If the bank makes a voluntary disclosure permitted by law and policy, share the underlying facts of the suspicious activity.
Withhold or protect:
- The existence or content of any suspicious activity report, unless disclosure is specifically authorized by law.
- Privileged legal advice and attorney work product.
- Speculation about Priya's guilt or the account holders' criminality that is not supported by facts.
- Personal data beyond the scope of the subpoena or the legitimate disclosure.
- Interview notes if legal advises that they are protected or should be produced only through counsel.
Document: what was shared, with whom, when, and under what authority. If law enforcement asks for something outside the subpoena, route the request through legal.
Reasoning: cooperation should be accurate and useful, but it must not waive privilege, breach reporting confidentiality, or expose the bank to liability. The investigator's credibility depends on separating fact from inference and following the legal channel.