Union Bank of California, N.A. v. Superior Court
Opinion
Opinion
McGUINESS, J.
National banks are required to file a suspicious activity report (SAR) with the federal government whenever they detect a known or suspected violation of federal law or a suspicious transaction related to money laundering. ( 12 C.F.R. § 21.11 (a) (2005).) SAR’s are confidential. ( 12 C.F.R. § 21.11 (k) (2005).) Under federal law, national banks that are subpoenaed or otherwise requested to produce a SAR are prohibited from producing the SAR or providing information that would disclose whether a SAR has been prepared or filed. (Ibid.)
In this writ proceeding, petitioner Union Bank of California, N.A. (Union Bank), challenges a trial court order compelling production of Union Bank’s internal suspicious activity reports, which Union Bank claims are generated as part of its procedure for preparing SAR’s and complying with federal reporting requirements. The trial court reasoned the internal forms comprise “supporting documentation” generated in the ordinary course of business and are therefore not subject to the unqualified privilege preventing disclosure of SAR’s or their contents. We disagree and grant a writ of mandate.