Treasury Department Provides Helpful Notice About the Federal Garnishment Rule
In previous edition of the Monday Courier, we alerted banks about a potential conflict between the federal garnishment rule and criminal seizure orders. Banks’ need to comply with the rule could frustrate law enforcement’s efforts to seize assets held in banks because enforcement agencies expect banks to turn over assets immediately and without offset. Last week, the Fiscal Service of the U.S.Treasury produced a notice directed to law enforcement, courts and municipalities informing them about banks’ obligations under the rule.
Banks are encouraged to refer officials, creditors, and others to the notice as needed.